H.B. No. 5292 introduces amendments to the Texas Tax Code concerning the collection of delinquent ad valorem taxes. The bill adds 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. Additionally, the bill amends Section 33.01 by introducing a new subsection (g), which limits the total amount of penalties and interest a person can incur on delinquent taxes to no more than five percent of the delinquent tax amount, regardless of the actual penalties and interest accrued.

The provisions of this bill are set to take effect on September 1, 2025, and the new payment application rules will only apply to payments received after this date. These changes aim to provide clearer guidelines for tax payment applications and to protect property owners from excessive penalties and interest on delinquent taxes.

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