The bill amends the Texas Tax Code to facilitate the electronic payment of ad valorem taxes and introduces a fee structure for processing these payments. It defines "electronic payment" to include various methods such as credit cards, debit cards, electronic checks, and automated clearinghouse payments. Tax collectors are required to accept these forms of payment and may charge a processing fee that does not exceed five percent of the total taxes owed. Additionally, the bill mandates that each collector establish procedures for property owners to make electronic payments and receive confirmation of their transactions.

Furthermore, the bill includes provisions for waiving penalties and interest on delinquent taxes if the taxpayer can demonstrate that they attempted to make an electronic payment before the due date but encountered transmission errors. The changes will take effect starting 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 by the 2026 tax year, while those in smaller counties have until the 2027 tax year.

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