Bill > HB245

This bill makes two key changes to how delinquent ad valorem (property) taxes are collected in Texas. First, it requires tax collectors to apply property owners' payments to the actual tax amount due before applying any payment to penalties or interest, unless the property owner specifically provides different written instructions. 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 penalties and interest would normally accrue under existing law. The new rules for applying payments will only apply to payments received on or after the bill's effective date, which is 91 days after the end of the legislative session. These changes are designed to provide some financial relief and more transparent treatment for property owners who are behind on their tax payments by limiting excessive penalty charges and ensuring that payments are first applied to the actual tax amount owed.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=892&Bill=HB245