Texas Senate Bill SB2551

Texas 2025 - 89th Regular

• Filed: 3/13/25

Caption

Relating to the eligibility of an individual to pay the ad valorem taxes imposed on the individual's residence homestead in installments.

Impact

If enacted, SB2551 would have significant implications for homeowners across Texas, particularly those facing financial challenges. By allowing taxpayers to break down large annual tax bills into manageable payments, the bill seeks to enhance affordability and compliance among homeowners. Moreover, it will contribute to a more effective approach in collecting property taxes, which could lead to better revenue stability for local governments.

Summary

SB2551 proposes to amend the Texas Tax Code regarding the payment of ad valorem taxes on residence homesteads. Under the new provisions, individuals will have the option to pay these taxes in four equal installments without incurring penalties or interest. To qualify, the individual must ensure that the first installment is paid before the delinquency date, along with a notice to the taxing unit indicating their intention to pay in installments. This change aims to offer more flexible payment options for homeowners, potentially alleviating financial burdens associated with property taxes.

Contention

While proponents of SB2551 argue that it provides necessary tax relief and improved financial flexibility for homeowners, opponents may raise concerns about the implications for local government funding and budgeting processes. There may be discussions around the potential administrative burdens imposed on local taxing units in terms of managing installment payment plans. Thus, while the bill aims to ease the payment process for residents, the long-term effects on revenue collection and local governance operations remain to be thoroughly considered.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 31. Collections
  • Section: 031