Texas HB5012 amends the Tax Code to set maximum penalties for delinquent taxes and tax reports and dictates how taxpayer payments are applied.

Texas HB5012 amends the Tax Code to establish a maximum penalty of five percent of the tax due for individuals who fail to pay taxes or file required reports on time. The bill also mandates that the comptroller apply taxpayer payments first to the amount of tax due, before applying any portion to penalties or interest, unless the taxpayer specifies otherwise in writing. These changes apply only to taxes or reports due on or after the bill's effective date of September 1, 2025.

Texas HB5012 amends the Tax Code to set maximum penalties for delinquent taxes and tax reports and dictates how taxpayer payments are applied.

Texas HB5012 amends the Tax Code to establish a maximum penalty of five percent of the tax due for individuals who fail to pay taxes or file required reports on time. The bill also mandates that the comptroller apply taxpayer payments first to the amount of tax due, before applying any portion to penalties or interest, unless the taxpayer specifies otherwise in writing. These changes apply only to taxes or reports due on or after the bill's effective date of September 1, 2025.