H.B. No. 137 amends the Texas Tax Code to enhance the process of collecting delinquent ad valorem taxes. It introduces a new 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. 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 new subsection (g) to Section 33.01, which limits the total amount of penalties and interest that a person can be liable for on delinquent taxes to $500, regardless of the actual penalties or interest that may have accrued. This provision seeks to provide a cap on the financial consequences of delinquent tax payments, thereby offering some relief to taxpayers facing financial difficulties. The provisions of this bill will take effect 91 days after the end of the legislative session.

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