bill capping late property tax penalties at five percent

The text as introduced · 206 words

By: Muñoz
H.B. No. 5292

A BILL TO BE ENTITLED

AN ACT

relating to the collection of delinquent ad valorem taxes.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 31, Tax Code, is amended by adding

Section 31.074 to read as follows:

Sec. 31.074. APPLICATION OF TAX PAYMENTS. The collector of

a taxing unit shall apply a payment made by a property owner to the

amount of tax due before applying any portion of the payment to a

penalty or interest owed by the property owner, unless the property

owner provides written instructions for a different application of

the payment.

SECTION 2. Section 33.01, Tax Code, is amended by adding

Subsection (g) to read as follows:

(g) Notwithstanding any other provision of law, or the total

amount of penalties and interest actually incurred or accrued on a

delinquent tax, the total amount of penalties and interest that a

person is liable for may not exceed the amount equal to five percent

of the delinquent tax.

SECTION 3. Section 31.074, Tax Code, as added by this Act,

applies only to a payment received on or after the effective date of

this Act.

SECTION 4. This Act takes effect September 1, 2025.