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HB 245TEXASSession 892State Billdead

Did Not Advance

Texas Bill Caps Property Tax Penalties and Interest at $500 and Alters Tax Payment Application Rules

Original title: Relating to the collection of delinquent ad valorem taxes.

Last action · August 20, 2025: Referred to Ways & MeansSponsor: Sergio Muñoz

Bill progressHistory & official text ↓

Introduced

Committee

Floor Vote

Passed

Law

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What This Bill Proposed

Property tax payments made by Texas owners must be applied to the principal tax due before any penalties or interest, unless the owner requests otherwise in writing. Additionally, the total amount of penalties and interest on delinquent taxes is capped at $500. These changes apply to payments received on or after the effective date.

Who It Would Have Affected

Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.

Directly affected

Property owners

Property owners benefit from a $500 ceiling on delinquent penalties and interest and gain control over how tax payments are applied.

Directly affected

Taxing units

Tax collectors must alter their payment processing rules to prioritize principal amounts over penalties and interest unless instructed otherwise.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

How does this bill change how my tax payment is applied?

Unless you provide written instructions otherwise, the tax collector must apply your payment to the principal tax amount due before applying any portion of it to penalties or interest.

Is there a limit on how much penalty and interest I can be charged on delinquent property taxes?

Yes. The total amount of penalties and interest on a delinquent tax is capped at $500, regardless of the amount that would otherwise accrue under standard calculations.

What else do you want to know?

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Where This Stands

This bill did not become law - Died at adjournment · in House committee.

Procedural history

3 actions

Aug 20, 2025HouseCommittee
Referred to Ways & Means
Aug 20, 2025HouseIntroduced
Read first time
Aug 19, 2025HouseIntroduced
Filed

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

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Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Connected Entities

Tax Code

OrganizationTax Code“Statutes amended by the bill”Map →

Sources

Open source document

capitol.texas.gov

Analysis Score

0–100

Significance20
Lowered because this bill did not pass (its text scored 60)
Controversy25
Intensity of disagreement among stakeholders
Entertainment5
Compellingness for a non-policy-wonk reader
Buzz30
Current news / social attention level

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