H.B. No. 245 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 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 provision to Section 33.01, establishing a cap on the total amount of penalties and interest that can be charged on delinquent taxes, limiting it to $500 regardless of the actual penalties or interest that may have accrued. This measure seeks to provide relief to taxpayers facing delinquency by preventing excessive charges. The provisions of this bill will take effect 91 days after the conclusion of the legislative session and will apply only to payments received after the effective date.

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