H.B. No. 2742 amends the Texas Tax Code to introduce a split-payment option for ad valorem taxes, allowing taxpayers to pay their taxes in two installments. Specifically, the bill allows a person who pays one-half of the taxing unit's taxes before December 1, or the date specified by the new Subsection (a-1), to pay the remaining half without penalty or interest before July 1 of the following year. If tax bills are mailed after November 30, the first half must be paid by the first day of the month following the first full calendar month after the mailing date.

Additionally, the bill clarifies that the split-payment option applies to property owners appealing their taxes, allowing them to pay half of the required amount before December 1 or the specified date and the remaining half by July 1 of the following year. The bill also removes outdated language regarding payment options and discounts that do not apply to late-calculated taxes. The changes will take effect on January 1, 2026, and will only apply to ad valorem taxes imposed for tax years beginning on or after that date.

Statutes affected:
Introduced: Tax Code 31.03, Tax Code 31.04, Tax Code 42.08 (Tax Code 42, Tax Code 31)
House Committee Report: Tax Code 31.03, Tax Code 31.04, Tax Code 42.08 (Tax Code 42, Tax Code 31)
Engrossed: Tax Code 31.03, Tax Code 31.04, Tax Code 42.08 (Tax Code 42, Tax Code 31)
Senate Committee Report: Tax Code 31.03, Tax Code 31.04, Tax Code 42.08 (Tax Code 42, Tax Code 31)
Enrolled: Tax Code 31.03, Tax Code 31.04, Tax Code 42.08 (Tax Code 42, Tax Code 31)