The property tax bill comes in October. Four ways to pay it, and what missing January 31 costs

Montgomery County set its tax rate on September 8. Every other taxing unit on the bill has to adopt its own rate before the statements can go out. The next thing that arrives is the bill. The Montgomery County Tax Office says it plainly: statements go out every October, the one lump-sum payment is due by January 31, and penalty and interest start on February 1.

That leaves four months and several ways to pay. Here they are, with who can use each one.

The ways to pay, side by side

The quarter plan is the county's version of a state law, Tax Code section 31.031, which lets those homeowners pay homestead taxes in four equal installments. The state requires the first installment and written notice of intent before the delinquency date. The county's own rule is the one above: a quarter of the bill by January 31.

If there is a mortgage

Most homeowners with a mortgage pay property tax through an escrow account: a slice of each monthly payment goes into it, and the lender pays the county. The tax office notes the pre-payment plan is for owners without one. A copy of the statement can still come to the house. Whether it is yours to pay or the lender's is on the mortgage statement, under escrow.

What missing January 31 costs

The schedule is set by state law, Tax Code section 33.01. On February 1 an unpaid bill picks up a 6% penalty and 1% interest. The penalty rises a point a month and the interest a point a month. On July 1 the penalty jumps to 12%, with 6% interest beside it. Under section 33.07, a taxing unit that hands delinquent accounts to its collection attorney can add a fee of up to 20% of everything owed at that point.

• February: 7% added
• March: 9%
• April: 11%
• May: 13%
• June: 15%
• July: 18%, plus a collection fee of up to 20% where it applies

On a $6,000 bill, a round number chosen for the math: paid in February, it costs $420 more. Paid in July, $1,080 more. If the account went to the collection attorney in July, the extra is about $2,496, which is 41% on top of the original bill. Interest keeps adding a point a month after that.

Where and how

• Online: through the tax office's payment page at mctotx.org. By its published fees, an eCheck costs nothing, a debit card 1.00%, and a credit card 2.05%, each with a $1 minimum. On a $6,000 bill that is $0, $60 or $123.
• By mail: 400 N. San Jacinto St., Conroe, Texas 77301.
• In Magnolia: the tax office lists a Magnolia branch at 19100 Unity Park Dr. Its hours and which services it handles are not posted on that page; the main line is (936) 539-7897.
• By email for questions: tax@mctx.org.

Things to check when the statement arrives

• The exemptions listed. Homestead, 65 or over, disabled person, disabled veteran. Exemptions are granted by the Montgomery Central Appraisal District, not the tax office, so a missing one is a question for the appraisal district.
• Whether a lender is named. An escrowed account should show it.
• Every taxing unit on the bill. A home in a municipal utility district will show the district's rate beside the county's and the school district's.
• The mailing address. A bill that goes to the old address is still due on January 31.

If nobody does anything

With an escrow account, the lender pays and the bill copy is for the file. Without one, nothing happens until February 1, and then 7% happens. A homeowner who qualifies for the quarter plan but does not send the first quarter by January 31 is not enrolled for that year.

Sources: the Montgomery County Tax Office's statements and payment page, for the October mailing, the January 31 due date, the February 1 start of penalty and interest, the Quarter Payment Plan and Pre-Payment Plan terms, the partial-payment rule, card and eCheck fees, the mailing address, the phone number and email; its locations page for the Magnolia office address; the Texas Comptroller's payment options page for Tax Code section 31.031; Tax Code chapter 33, sections 33.01 and 33.07, for penalty, interest and the collection fee. The $6,000 bill and the arithmetic are the paper's, for illustration.