Texas House Bill HB21

Texas 2025 - 89th 2nd C.S.

• Filed: 8/18/25
• Filed: 8/20/25

Summary

HB 21 amends the Texas Tax Code to reduce the penalty and interest rates applied to delinquent ad valorem taxes, including delinquent installment payments and split-payment second installments. Under current law, delinquent property taxes generally incur a 6 percent penalty for the first month and 1 percent per additional month before July 1, with a 12 percent penalty if still delinquent on July 1, plus 1 percent monthly interest. The bill lowers those rates to 3 percent for the first month, one-half percent for each additional month before July 1, a 6 percent total penalty on taxes delinquent on July 1, and one-half percent monthly interest. The bill also makes conforming changes to the installment-payment provisions in Sections 31.031 and 31.032 so that unpaid installments are treated as delinquent and subject to the revised penalty and interest structure under Section 33.01(c), while the general penalty under Section 33.01(a) does not apply to those unpaid installments. The changes apply only to penalties and interest accruing on or after the bill’s effective date, which is 91 days after the end of the legislative session.

Impact

HB 21 would directly amend provisions of the Texas Tax Code governing delinquent property tax penalties and interest, reducing the financial charges imposed on taxpayers who miss payment deadlines. It would affect taxing units, county tax collectors, and property owners by lowering the cost of delinquency and changing the rate at which unpaid ad valorem taxes accumulate penalties and interest. The bill applies prospectively only, preserving the prior law for amounts that accrued before the effective date.

Sentiment

Based on the bill text and the absence of recorded committee discussion or votes in the provided materials, the available record suggests a straightforward technical tax-relief measure rather than a highly contentious proposal. The bill’s structure indicates an intent to ease the burden on delinquent taxpayers by lowering penalties and interest, which would likely be viewed favorably by property owners and potentially by advocates of tax relief. No contrary viewpoints, amendments, or recorded opposition are included in the provided context.

Contention

The main policy issue is whether reducing delinquent property tax penalties and interest could lessen the deterrent effect of existing law and reduce compensation to taxing units for lost revenue. Supporters would likely emphasize relief for taxpayers facing temporary hardship and a more moderate penalty structure, while opponents might argue that lower charges could encourage late payment or reduce collections. Because no committee transcript or vote record is provided, no specific legislator, agency, or stakeholder position can be identified from the available materials.