Bill > HB5268

This bill introduces two key changes to the Texas Tax Code that benefit taxpayers. First, it mandates that when a taxpayer makes a payment, the Texas Comptroller must apply that payment to the actual tax amount due before applying any funds to penalties or interest, unless the taxpayer provides written instructions otherwise. Second, the bill caps penalties for failing to pay taxes or file required reports at $500, specifically for taxes under Titles 2 and 3 of the Tax Code. The bill clarifies that these new provisions will only apply to payments and tax reports due on or after the bill's effective date of September 1, 2025, meaning existing tax obligations will still be governed by previous laws. These changes aim to provide more predictable and potentially less burdensome tax penalty structures for taxpayers, giving them more control over how their tax payments are applied and limiting the maximum penalty amount for late payments or unfiled reports.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB5268