If you have fallen behind on your Texas delinquent property tax payments, you aren't just dealing with your local county anymore—you are facing a sophisticated, private collection industry.
Following the "July 1st turnover," major law firms like Linebarger Goggan and Perdue Brandon take control of delinquent accounts, adding aggressive collection fees that can increase your total debt by up to 20% overnight. According to a 2025 investigative report by the Texas Tribune, these private firms have turned the collection of back taxes into a massive revenue engine, often at the expense of struggling homeowners and business owners.
As a property tax attorney, I have seen how these firms operate. This guide serves as a primer on the "Big Three" collection firms, the statutory authority they use to charge high fees, and the specific legal defenses you can use to protect your property from foreclosure.
What is a Delinquent Tax Law Firm?
Under the Texas Tax Code, local taxing units (such as counties, cities, and school districts) have the authority to contract with private attorneys to enforce the collection of delinquent taxes. These are not government employees; they are private law firms that specialize in high-volume litigation and debt collection.
These firms act as the "muscles" for the tax office. Once your account is turned over to them—typically on July 1st—they take over all communications, payment negotiations, and legal filings. Their primary goal is to secure payment in full, including their own substantial fees. If payment is not made, they have the power to file a lawsuit to foreclose the tax lien, which can ultimately lead to your property being sold at a public auction.
The Business of Debt
It is important to understand that these firms operate on a contingency basis. They don’t get paid by the county; they get paid by you. The Texas Tax Code allows them to tack a "collection penalty" of up to 20% onto your total bill to cover their costs. This creates a massive financial incentive for these firms to pursue every dollar aggressively.
The "Big Three": The Power Players in Texas Tax Collection
While many local attorneys handle property tax matters, the landscape of delinquent tax collection in Texas is dominated by three massive firms. Together, they handle the lion's share of the state’s delinquent accounts.
1. Linebarger Goggan Blair & Sampson, LLP
Headquartered in Austin, Linebarger is the undisputed giant of the industry. They represent thousands of taxing jurisdictions across the United States, but their influence is most felt in Texas. Recent data indicates they collect well over $100 million in fees annually from Texas taxpayers alone. They are known for their significant political presence and their ability to handle massive volumes of delinquent accounts simultaneously.
2. Perdue Brandon Fielder Collins & Mott, LLP
Often referred to simply as "Perdue Brandon," this firm is the second-largest player in the Texas market. With a history dating back to 1970, they represent hundreds of school districts, cities, and counties. While slightly smaller than Linebarger, they are equally aggressive in their pursuit of delinquent balances and foreclosure actions.
3. McCreary, Veselka, Bragg & Allen, P.C. (MVBA)
Rounding out the "Big Three" is MVBA. Based in Round Rock, this firm focuses heavily on central and regional Texas jurisdictions. They provide integrated technology and collection services to appraisal districts and tax offices, making them a formidable presence for any taxpayer whose account falls into their hands.
Statutory Authority: The Rules of the Game
The power these firms wield isn’t arbitrary; it is rooted in specific sections of the Texas Tax Code. Understanding these statutes is the first step in mounting a defense.
· Section 6.30(c): This is the "Enabling Act" for collection firms. It allows a taxing unit to contract with a private attorney to represent them in delinquent tax cases. It also sets the maximum compensation for the attorney at 20% of the amount of taxes, penalties, and interest collected.
· Section 33.07: This statute allows taxing units to impose an additional 15% to 20% penalty on taxes that are delinquent on July 1st to "defray the costs of collection."
· Section 33.08: Similar to 33.07, this section allows for an additional penalty for taxes that become delinquent later in the year (such as those resulting from a late appraisal roll) to ensure the law firms still get their 20% cut.
· Section 33.48: This section outlines what the "Big Three" can recover if they actually file a lawsuit against you. This includes attorney’s fees, court costs, and expenses for title searches.
The Cost of Delay: Penalties, Interest, and Deadlines
In Texas, the "Tax Clock" starts ticking on February 1st. If you haven't paid by then, the financial penalties begin to compound with a speed that catches many owners off guard.
Breakdown of Accruals
Date/Deadline | Penalty | Interest | Collection Fee | Total Increase |
February 1 | 6% | 1% | 0% | 7% |
March 1 | 7% | 2% | 0% | 9% |
April 1 | 8% | 3% | 0%* | 11% |
May 1 | 9% | 4% | 0% | 13% |
June 1 | 10% | 5% | 0% | 15% |
July 1 (The Cliff) | 12% | 6% | 15–20% | 33–38% |
*Note: For Business Personal Property, the 20% collection fee can sometimes be applied as early as April 1st.
The "July 1st Cliff": As the table shows, July 1st is the most critical date in the tax year. On this day, the penalty jumps to its maximum of 12%, and the private law firms add their 20% fee. In a single day, your tax bill can increase by over 20%. For a property owner owing $10,000, that is an overnight "tax" of $2,000 just for the privilege of being collected upon.
Defending Against a Delinquent Tax Suit
If you are sued by a collection firm, it is not an automatic "game over." There are several legal defenses that can be raised to reduce or eliminate the debt. However, these defenses must be asserted properly in a court of law; the collection firms will rarely "volunteer" to drop a case based on these facts.
1. Statute of Limitations (Section 33.05)
The government does not have forever to sue you for taxes.
· Real Property: Taxes on real estate are subject to a 20-year statute of limitations.
· Business Personal Property: Taxes on furniture, equipment, or inventory used for a business have a much shorter fuse—only 4 years.
If a firm tries to collect on business personal property taxes from 2018 in the year 2025, they may be legally barred from doing so.
2. Non-Ownership (Section 42.04)
A common error occurs when a tax office sues a person who did not actually own the property on January 1st of the tax year in question. Tax liability in Texas is "personally" tied to the owner of the property on the first day of the year. If you sold the property on December 30th, but the records weren't updated, you are not responsible for the following year's taxes.
3. Taxes Already Paid
While it sounds simple, "accounting errors" are surprisingly common in large-scale government databases. If a payment was misapplied to a different account, lost in the mail, or handled incorrectly by an escrow company, you have an absolute defense. Providing a "paid" receipt or a canceled check is the fastest way to shut down a collection firm’s lawsuit.
Why You Need a Targeted Defense
When you are facing a firm like Linebarger or Perdue Brandon, you are facing a business that profits from your delinquency. They are not looking for "fairness"—they are looking for the maximum statutory recovery.
At Saegert Law, we see these firms for what they are: aggressive litigants. We specialize in stepping between the taxpayer and the collection firm to find errors, and raise the defenses mentioned above. Whether it is challenging an incorrect appraisal that led to the delinquency or fighting a 20-year-old tax bill, our goal is to stop the bleeding and protect your property from foreclosure. Be aware, that by law there is little negotiation when it comes to reducing or waiving any fees imposed. The penalties, interest, and cost are set by statute, and barring a mistake in calculations, there is little that can be done to reduce or settle delinquent property taxes short of paying the amounts sued for.
Don't Wait for July 1st
If you are behind paying your property taxes, the best time to act is now. Once that 20% attorney fee attaches on July 1st, it is incredibly difficult to remove. If you have already been sued, do not ignore the notice. A "default judgment" allows the firm to sell your home or business at auction without further input from you.
Contact Michael Saegert today at (713) 673-8754 or via email at mike@saegertlaw.com to discuss your options and build a defense against delinquent tax collection firms
