H.B. No. 5268 proposes amendments to the Texas Tax Code regarding the application of taxpayer payments and the imposition of penalties for delinquent taxes and tax reports. The bill introduces a new section, 111.0512, which mandates that the comptroller must apply any payment made by a taxpayer first to the tax due, before allocating any portion of the payment to penalties or interest, unless the taxpayer provides written instructions for a different allocation. Additionally, the bill adds a new subsection (a-1) 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 certain penalties outlined in Subsection (b).

The provisions of this bill will only apply to payments received and tax amounts or reports originally due on or after the effective date of September 1, 2025. Payments received before this date will be governed by the existing law at that time, ensuring that the previous regulations remain in effect for those transactions.

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