H.B. No. 5268 introduces amendments to the Texas Tax Code regarding the application of taxpayer payments and the imposition of penalties for delinquent taxes and tax reports. A new section, 111.0512, mandates that the comptroller must apply any payment made by a taxpayer first to the tax due, before allocating any portion to penalties or interest, unless the taxpayer provides written instructions for a different allocation. Additionally, a new subsection (a-1) is added to Section 111.061, which limits penalties for failing to pay taxes or file required reports to a maximum of $500, with an exception for penalties specified in Subsection (b).

The bill specifies that the new provisions will only apply to payments received and tax reports originally due on or after the effective date of the Act, which is set for September 1, 2025. Payments and penalties related to obligations that were due prior to this date will continue to be governed by the existing law. This ensures a clear transition to the new regulations while maintaining the applicability of previous laws for earlier obligations.

Statutes affected:
Introduced: Tax Code 111.061 (Tax Code 111)