Bill > HB5012

This bill modifies the Texas Tax Code to change how taxpayer payments are applied and how penalties are assessed for late tax payments and reports. Specifically, the bill requires the comptroller to apply taxpayer payments first to the outstanding tax amount before applying any portion to penalties or interest, unless the taxpayer provides written instructions otherwise. The bill also revises the penalty structure for late tax payments, removing the previous provision of an additional five percent penalty for 30-day late payments and establishing a maximum penalty limit. Under the new law, a standard five percent penalty will be imposed for failing to pay taxes or file reports when due, with a caveat that the total penalty cannot exceed specified amounts. The bill also includes transitional provisions stating that these changes will only apply to tax payments and reports due on or after the effective date of September 1, 2025, ensuring that existing tax obligations are not retroactively modified.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB5012