bill capping penalties and interest on late homestead taxes

The text as introduced · 254 words

89R5476 LHC-D

By: Menéndez
S.B. No. 2856

A BILL TO BE ENTITLED

AN ACT

relating to the penalties and interest that may be incurred on

delinquent ad valorem taxes imposed on a residence homestead.

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

SECTION 1. Section 33.01, Tax Code, is amended by adding

Subsections (g) and (h) to read as follows:

(g) Notwithstanding Subsections (a) and (c), a delinquent

tax on property that qualifies for an exemption under Section 11.13

that remains unpaid prior to July 1 of the year in which it becomes

delinquent incurs a total amount of penalty and interest equal to

seven percent of the amount of the tax.

(h) Notwithstanding Subsections (a), (b), and (c), a tax on

property that qualifies for an exemption under Section 11.13 that

is delinquent on July 1 incurs a total amount of penalty and

interest equal to 12 percent of the amount of the tax, regardless of

the number of months the tax has been delinquent.

SECTION 2. The changes in law made by this Act apply only to

the penalty and interest incurred on a tax that becomes delinquent

on or after the effective date of this Act. The penalty and

interest incurred on a tax that became delinquent before the

effective date of this Act are governed by the law in effect on the

date the tax became delinquent, and the former law is continued in

effect for that purpose.

SECTION 3. This Act takes effect September 1, 2025.