Texas HB5287 amends tax collection rules for delinquent ad valorem taxes, prioritizing tax due over penalties and interest and capping total.

Texas HB5287 modifies the application of payments made by property owners towards delinquent ad valorem taxes. It requires collectors to first apply payments to the amount of tax due, rather than to penalties or interest, unless the property owner specifies otherwise in writing. Additionally, the bill limits the total penalties and interest a person can be liable for on a delinquent tax to $500, regardless of the actual amount calculated under existing law. These changes apply to payments received after the bill's effective date of September 1, 2025.

Texas HB5287 amends tax collection rules for delinquent ad valorem taxes, prioritizing tax due over penalties and interest and capping total.

Texas HB5287 modifies the application of payments made by property owners towards delinquent ad valorem taxes. It requires collectors to first apply payments to the amount of tax due, rather than to penalties or interest, unless the property owner specifies otherwise in writing. Additionally, the bill limits the total penalties and interest a person can be liable for on a delinquent tax to $500, regardless of the actual amount calculated under existing law. These changes apply to payments received after the bill's effective date of September 1, 2025.