Texas HB21 modifies the penalty and interest rates for delinquent ad valorem taxes.

HB21 amends the Texas Tax Code to change how penalties and interest are calculated for unpaid ad valorem taxes. A delinquent tax now incurs a penalty of three percent for the first month it is unpaid, plus an additional one percent for each subsequent month until July 1. After July 1, the penalty is six percent regardless of the number of months unpaid. Interest accrues at a rate of one-half percent per month. These changes apply to penalties and interest accruing after the bill's effective date.

Texas HB21 modifies the penalty and interest rates for delinquent ad valorem taxes.

HB21 amends the Texas Tax Code to change how penalties and interest are calculated for unpaid ad valorem taxes. A delinquent tax now incurs a penalty of three percent for the first month it is unpaid, plus an additional one percent for each subsequent month until July 1. After July 1, the penalty is six percent regardless of the number of months unpaid. Interest accrues at a rate of one-half percent per month. These changes apply to penalties and interest accruing after the bill's effective date.