What to do about missing property tax bills

This post has been revised. It was originally published September 28, 2023.

Key takeaways

• Because they’re largely paper-based and sent via mail, property tax bills can get lost — but businesses are still expected to pay on time even if a bill doesn’t arrive.
• It’s important to stay on top of what property tax bills your business expects to receive, and when you expect to receive them.
• If you don’t pay a bill — even one that never arrived — your business could face significant financial penalties and reputational damage.
• AI-powered property tax software from Avalara can help your business reduce risk and enhance efficiency, providing a solid return on investment.

“If it doesn’t ring up, I guess it’s free!”

You’ve probably heard a customer make that cringeworthy joke at the grocery store when the checker has difficulty ringing up an item. (You probably also know that’s not how it works.)

But did you know that if a property tax bill doesn’t “ring up” — that is, you don’t receive it — you’re still on the hook to pay, just like you are at the store?

Unfortunately, it’s true. It doesn’t matter if your bill was lost in the mail, it fell behind someone’s desk in the office, or it was sent to the wrong address: There’s no free ride when it comes to property tax. And because businesses often receive multiple tax bills (most of which are paper-based), it’s easy for one to get lost without you even realizing it.

The first step to resolving a missing bill is knowing you’ve missed it, which means you need to be aware of the estimated bill arrival dates for each of your locations. That way you can quickly take action if you don’t receive one or more. (If you’re not already using property tax software to track bills and key dates, or a managed solution that handles the entire process for you, you’re missing more than just the occasional bill — you’re also missing out on a far more efficient way to deal with all of this.) 

Once you have technology and/or a process in place to identify when you’ve missed a bill, here are three steps you can take to fix the situation:

1. Go to the tax collector’s website. There you can search for a copy of the bill using your account number and other identifying details. In most cases, you can either print the digital copy of the tax bill or at least gather the details needed to remit payment.
2. Call the collector. Not all jurisdictions have online portals for finding your tax bills. In these cases, try calling the collector to alert them of the missing bill. They might be able to send you a new one via mail, fax, or email; some may be able to give certain details over the phone.
3. Send an estimated payment. If all else fails, it’s best to simply send an estimated payment to avoid penalties. If you take this route, be sure to overestimate the payment — you don’t want to be short, and the collector can refund any amount above what’s actually due.

It doesn’t seem fair to face penalties for not paying a bill you never received, but it’s possible with property tax. Failing to pay on time can result in some pretty dire consequences, including:

• Monetary penalties
  The quickest and most common consequence is a penalty from the tax collector for late payment — and the longer you wait to pay, the more it can cost you. For example, you might face a 3% penalty for missing a deadline by a couple of weeks, 10% for missing by a month, and more after that. Collection fees might even be added to your bill after a certain point.

• Reputational harm
  Some tax collectors take an extra step to encourage taxpayers to address their delinquent bills: publishing lists of businesses that haven’t paid what they owe. This reputation damage could limit a company’s ability to establish relationships with suppliers (or strain existing ones). Think of it from the supplier’s point of view — if a business isn’t paying its taxes, the supplier might start wondering whether they could get stiffed in the future.

• Property loss
  Some tax collectors might even go so far as to place a lien on a company’s property in an effort to secure past-due payments. While it’s not a common practice, this act can cause severe reputational harm: Not only is the lien public, but the collector could also potentially seize the property to cover the company’s debt.

Avalara Property Tax uses a tax calendar to help manage the property tax cycle, so your team can easily track deadlines for returns, appeals, and tax bills. It automatically populates your tax calendar with the relevant due dates in each jurisdiction for returns, appeal filings, and tax bills.

You can also access detailed information for over 20,000 assessing and collecting jurisdictions, all validated annually, so you can avoid looking up things like due dates, mailing addresses, and depreciation tables.

The return on investment can be significant: An automated solution can help you avoid penalties, and the increased efficiency means you’ll be able to allocate resources to more profitable initiatives.

If you’d like to learn more about Avalara Property Tax or our other property tax software, schedule a call today.

What happens when a property tax bill doesn’t arrive?

Even if a property tax bill gets lost in the mail, your business is still expected to pay it on time. That’s why it’s important to keep track of what bills you’re expecting and when they should arrive.

What should I do if a bill is missing?

If you know a property tax bill is missing, you have several options: You can go to the tax collector’s website to look for a copy and get payment details. You can call the collector’s office directly for information. And if you can’t get the details you need, you should send an estimated payment to avoid potential penalties.

Could my business really be penalized for not paying a bill we never received?

Yes. You could face financial penalties (which can grow the longer a bill is unpaid), reputational harm (some jurisdictions publicly name businesses that have not paid taxes), and even a lien on your property.

Is there a better way to stay on top of this?

Automated solutions from Avalara — such as Avalara Property Tax or Avalara Property Tax Managed Services — can track your property tax bills and help ensure that even if one doesn’t arrive, you’ll know that it should have. Avalara makes it easier to pay those bills too.