HB 5287

relating to the collection of delinquent ad valorem taxes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Chapter 31, Tax Code, is amended by adding
Section 31.074 to read as follows:
Sec. 31.074.  APPLICATION OF TAX PAYMENTS.  The collector of
a taxing unit shall apply a payment made by a property owner to the
amount of tax due before applying any portion of the payment to a
penalty or interest owed by the property owner, unless the property
owner provides written instructions for a different application of
SECTION 2.  Section 33.01, Tax Code, is amended by adding
Subsection (g) to read as follows:
(g)  Notwithstanding any other provision of law, the total
amount of penalties and interest on a delinquent tax that a person
is liable for may not exceed $500, regardless of the actual amount
of the penalties incurred or interest accrued on the delinquent tax
as otherwise calculated under law.
SECTION 3.  Section 31.074, Tax Code, as added by this Act,
applies only to a payment received on or after the effective date of
SECTION 4.  This Act takes effect September 1, 2025.