H.B. No. 5292 introduces amendments to the Texas Tax Code concerning the collection of delinquent ad valorem taxes. A new section, 31.074, mandates that tax collectors apply payments made by property owners first to the tax due, before addressing any penalties or interest, unless the property owner specifies otherwise in writing. This change aims to prioritize the reduction of the principal tax owed, potentially easing the financial burden on property owners.

Additionally, the bill adds a provision to Section 33.01, establishing that the total penalties and interest a person owes on delinquent taxes cannot exceed five percent of the delinquent tax amount, regardless of the actual penalties and interest accrued. This cap is intended to provide further relief to property owners facing delinquent tax situations. The provisions of this bill will take effect on September 1, 2025, and will apply only to payments received after that date.

Statutes affected:
Introduced: Tax Code 33.01 (Tax Code 33)