89R4166 DRS-F
By: Hinojosa of Hidalgo S.B. No. 1531
A BILL TO BE ENTITLED
AN ACT
relating to the electronic payment of ad valorem taxes; authorizing
a fee.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 31.06, Tax Code, is amended by amending
Subsections (a) and (c) and adding Subsection (a-1) to read as
follows:
(a) In this section, "electronic payment" has the meaning
assigned by Section 31.062.
(a-1) Except as provided by Section 31.061, taxes are
payable only as provided by this section. Except as provided by
Subsection (e), a collector shall accept United States currency or
a check or money order in payment of taxes and shall accept any form
of electronic payment of taxes made in the manner provided by
Section 31.062 [payment by credit card or electronic funds
transfer].
(c) If a tax is paid by an electronic payment [credit card],
the collector may collect a fee for processing the payment. The
collector shall set the fee in an amount that is reasonably related
to the expense incurred by the collector or taxing unit in
processing the payment [by credit card], not to exceed five percent
of the amount of taxes and any penalties or interest being paid.
The fee is in addition to the amount of taxes, penalties, or
interest.
SECTION 2. Chapter 31, Tax Code, is amended by adding
Section 31.062 to read as follows:
Sec. 31.062. ELECTRONIC TAX PAYMENTS. (a) In this section,
"electronic payment" means a payment made by credit card, debit
card, electronic check, electronic funds transfer, or automated
clearinghouse payment.
(b) Each collector shall establish a procedure that allows a
property owner or a person designated by a property owner under
Section 1.111(f) to make any form of electronic payment of taxes and
receive confirmation of the submission of an electronic payment.
(c) Each county assessor-collector shall prominently
display on the Internet website maintained by the county under
Section 26.16 the information necessary to make an electronic
payment of taxes to the collector for each taxing unit all or part
of the territory of which is located in the county.
(d) If necessary to complete the applicable form of
electronic payment, a collector may require a property owner or a
person designated by a property owner under Section 1.111(f) to
provide:
(1) an e-mail address;
(2) a financial account number;
(3) sufficient electronic remittance information for
the collector to apply an electronic payment to the property
owner's account; and
(4) any other information the collector determines is
necessary to properly receive, process, and confirm the receipt of
an electronic payment made by the property owner or the person
designated by the owner.
(e) An electronic payment of taxes by a property owner or a
person designated by a property owner under Section 1.111(f) to a
collector is timely if the payment is made in the proper manner on
or before the date on which the payment is due.
(f) An electronic signature that is included on or with an
electronic payment of taxes made under this section is considered
to be a digital signature for purposes of Section 2054.060,
Government Code, and that section applies to the electronic
signature.
SECTION 3. Section 33.011(h), Tax Code, is amended to read
as follows:
(h) The governing body of a taxing unit shall waive
penalties and interest on a delinquent tax if[:
[(1) the tax is payable by electronic funds transfer
under an agreement entered into under Section 31.06(a); and
[(2)] the taxpayer submits evidence sufficient to show
that:
(1) [(A)] the taxpayer attempted to pay the tax by
electronic payment under Section 31.062 [funds transfer] in the
proper manner before the delinquency date;
(2) [(B)] the taxpayer's failure to pay the tax before
the delinquency date was caused by an error in the transmission of
the payment [funds]; and
(3) [(C)] the tax was properly paid by electronic
payment [funds transfer] or otherwise not later than the 21st day
after the date the taxpayer knew or should have known of the
delinquency.
SECTION 4. The changes in law made by this Act apply only to
a tax year that begins on or after the effective date of this Act.
SECTION 5. (a) The officer or employee responsible for
collecting property taxes for a taxing unit located wholly or
primarily in a county with a population of 120,000 or more shall
comply with Section 31.062, Tax Code, as added by this Act,
beginning with the 2026 tax year.
(b) The officer or employee responsible for collecting
property taxes for a taxing unit located wholly or primarily in a
county with a population of less than 120,000 shall comply with
Section 31.062, Tax Code, as added by this Act, beginning with the
2027 tax year.
SECTION 6. This Act takes effect January 1, 2026.