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The Government of the State of Texas may resort to the seizure mechanism when a taxpayer accumulates state tax debts. The Public Accounts Control Office (CPA) is responsible for collecting state taxes and enforcing penalties on those who fail to meet their obligations.

However, there are limitations on the assets that can be seized under the Texas Property Code.

What protects the residents of this state?

According to state law, certain assets are exempt from seizure so that people do not lose assets considered essential to living or working despite facing debts.

In the Texas Property Code, there are cases in which the primary home cannot be seized since the owner’s usual residence is protected. Likewise, residents’ vehicles cannot be seized either: up to one vehicle is allowed per member who has a driver’s license or depends on someone else for transportation.

The protected assets are:

  • Primary home.
  • One vehicle per member.
  • Furniture and appliances.
  • Clothing and personal items.
  • Tools, equipment, and books needed for work.
  • Jewelry within the limits established by law.
  • Retirement accounts and some retirement plans.

However, this protection does not apply when it comes to debts related to mortgages, property taxes, loans secured by the home, etc.

The assets Texas can seize from those who have tax debts

When a taxpayer has outstanding tax obligations, the authorities can use various tools to secure collection of the amounts owed.

Among the assets that can be seized without limitation are:

  • Bank accounts.
  • Personal property when its value exceeds the limits.
  • Properties that do not function as a personal residence.

Texas state tax obligations: information everyone should know

Texas taxpayers do not have to pay a state income tax like in other states, but they must comply with other obligations, such as paying taxes:

  • Sales tax.
  • Property taxes: this does not have a single rate and can vary by county, city, or district.

Failure to comply with these obligations can generate interest, surcharges, and other penalties.