S.B. No. 1531 amends the Texas Tax Code to facilitate the electronic payment of ad valorem taxes and introduces a fee structure for processing these payments. The bill defines "electronic payment" to include payments made by credit card, debit card, or electronic check, and mandates that tax collectors establish procedures for property owners to make electronic payments and receive confirmation. Additionally, it allows collectors to charge a processing fee for electronic payments, which must be reasonable and not exceed five percent of the total taxes, penalties, or interest due.

The bill also modifies the conditions under which penalties and interest on delinquent taxes may be waived, specifically if a taxpayer can demonstrate that they attempted to make an electronic payment before the delinquency date but encountered transmission errors. The changes will take effect on January 1, 2026, with compliance timelines varying based on the population of the county in which the taxing unit is located. Tax collectors in larger counties must comply starting with the 2026 tax year, while those in smaller counties will begin compliance in 2027.

Statutes affected:
Introduced: Tax Code 31.06, Tax Code 33.011 (Tax Code 31, Tax Code 33)
Senate Committee Report: Tax Code 31.06, Tax Code 33.011 (Tax Code 31, Tax Code 33)
Engrossed: Tax Code 31.06, Tax Code 33.011 (Tax Code 31, Tax Code 33)
House Committee Report: Tax Code 31.06, Tax Code 33.011 (Tax Code 31, Tax Code 33)