The bill, H.B. No. 3473, amends the Texas Tax Code to facilitate the electronic payment of ad valorem taxes and authorizes the collection of a processing fee for such payments. It introduces a new definition of "electronic payment," which includes various forms such as credit cards, debit cards, electronic checks, and automated clearinghouse payments. The bill mandates that tax collectors accept these electronic payments and establishes that a fee may be charged for processing them, which should be reasonable and not exceed five percent of the total tax amount. Additionally, it requires tax collectors to provide a procedure for property owners to make electronic payments and receive confirmation of their submissions.

The bill also modifies existing provisions regarding the waiver of penalties and interest on delinquent taxes, stipulating that penalties may be waived if the taxpayer can demonstrate that they attempted to pay electronically before the due 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. Specifically, units in counties with populations of 120,000 or more must comply starting in 2026, while those in smaller counties have until 2027.

Statutes affected:
Introduced: Tax Code 31.06, Tax Code 33.011 (Tax Code 31, Tax Code 33)