LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 12, 2025 TO: Honorable Paul Bettencourt, Chair, Senate Committee on Local Government FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1531 by Hinojosa, Juan "Chuy" (Relating to the electronic payment of ad valorem taxes; authorizing a fee.), As Introduced No fiscal implication to the State is anticipated. The bill would define electronic payments and require each tax collector to establish a procedure to allow a property owner or their representative to pay their property taxes with an electronic payment and receive confirmation of that electronic payment.The county tax assessor-collector must prominently display in their Internet website information necessary to make an electronic payment of taxes. An electronic payment is considered timely if the electronic payment is made on or before the date on which the payment is due.The bill would also include an electronic payment as an acceptable method of payment and authorize the tax collector to collect a fee for processing the electronic payment.A collector for a taxing unit located wholly or primarily in a county with a population of 120,00 or more is required to accept electronic payments beginning with the 2026 tax year. A collector for a taxing unit located wholly or primarily in a county with a population of less than 120,000 is required to accept electronic payments beginning with the 2027 tax year. Local Government ImpactThere could be costs to county tax assessor-collectors associated with any system updates required to accept electronic payments. Processing fee revenue could offset some portion of the costs of implementation. Source Agencies: b > td > 304 Comptroller of Public Accounts LBB Staff: b > td > JMc, SZ, SD, BRI
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
April 12, 2025
TO: Honorable Paul Bettencourt, Chair, Senate Committee on Local Government FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1531 by Hinojosa, Juan "Chuy" (Relating to the electronic payment of ad valorem taxes; authorizing a fee.), As Introduced
TO: Honorable Paul Bettencourt, Chair, Senate Committee on Local Government
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SB1531 by Hinojosa, Juan "Chuy" (Relating to the electronic payment of ad valorem taxes; authorizing a fee.), As Introduced
Honorable Paul Bettencourt, Chair, Senate Committee on Local Government
Honorable Paul Bettencourt, Chair, Senate Committee on Local Government
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
SB1531 by Hinojosa, Juan "Chuy" (Relating to the electronic payment of ad valorem taxes; authorizing a fee.), As Introduced
SB1531 by Hinojosa, Juan "Chuy" (Relating to the electronic payment of ad valorem taxes; authorizing a fee.), As Introduced
No fiscal implication to the State is anticipated.
No fiscal implication to the State is anticipated.
The bill would define electronic payments and require each tax collector to establish a procedure to allow a property owner or their representative to pay their property taxes with an electronic payment and receive confirmation of that electronic payment.The county tax assessor-collector must prominently display in their Internet website information necessary to make an electronic payment of taxes. An electronic payment is considered timely if the electronic payment is made on or before the date on which the payment is due.The bill would also include an electronic payment as an acceptable method of payment and authorize the tax collector to collect a fee for processing the electronic payment.A collector for a taxing unit located wholly or primarily in a county with a population of 120,00 or more is required to accept electronic payments beginning with the 2026 tax year. A collector for a taxing unit located wholly or primarily in a county with a population of less than 120,000 is required to accept electronic payments beginning with the 2027 tax year.
Local Government Impact
There could be costs to county tax assessor-collectors associated with any system updates required to accept electronic payments. Processing fee revenue could offset some portion of the costs of implementation.
Source Agencies: b > td > 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: b > td > JMc, SZ, SD, BRI
JMc, SZ, SD, BRI