Bill > HB5287

This bill introduces two key changes to how delinquent ad valorem taxes (property taxes) are collected in Texas. First, it requires tax collectors to apply property owners' payments first to the actual tax amount due, rather than to penalties or interest, unless the property owner specifically instructs otherwise in writing. Second, the bill caps the total amount of penalties and interest that can be charged on a delinquent tax at $500, regardless of how much in penalties and interest would normally accrue under existing law. These provisions aim to provide some financial relief to property owners who are behind on their tax payments by ensuring that their payments reduce the principal tax amount first and by limiting the potential financial burden of penalties and interest. The bill will take effect on September 1, 2025, and will apply to tax payments received on or after that date.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB5287