H.B. No. 137 introduces amendments to the Texas Tax Code concerning the collection of delinquent ad valorem taxes. The bill adds Section 31.074, which mandates that tax collectors apply payments made by property owners first to the amount of tax due, before addressing any penalties or interest, unless the property owner specifies otherwise in writing. Additionally, the bill amends Section 33.01 by adding Subsection (g), which establishes a cap on the total amount of penalties and interest for delinquent taxes at $500, regardless of the actual penalties or interest that may have accrued.

The provisions of Section 31.074 will only apply to payments received on or after the effective date of the Act, which is set to take effect 91 days after the conclusion of the legislative session. This legislation aims to provide clearer guidelines for the application of tax payments and to limit the financial burden on property owners facing delinquent taxes.

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