Texas Senate Bill SB2856

Texas 2025 - 89th Regular

• Filed: 3/14/25

Caption

Relating to the penalties and interest that may be incurred on delinquent ad valorem taxes imposed on a residence homestead.

Impact

The bill is designed to provide clearer terms and possibly a more substantial penalty framework for those who are late in paying property taxes on their primary residences. By implementing these specific penalty rates, SB2856 seeks to ensure that taxpayers understand the financial burden of late payments. The changes will only be effective for taxes that become delinquent on or after September 1, 2025, meaning existing delinquent cases will be managed under the prior laws in place when they became overdue. This gradual implementation allows for a transitional period for taxpayers and local taxation authorities.

Summary

SB2856 is a legislative proposal that aims to modify the penalties and interest applied to delinquent ad valorem taxes specifically imposed on residence homesteads. The bill introduces new stipulations regarding the percentage of penalties imposed for unpaid taxes that qualify for an exemption under Section 11.13 of the Texas Tax Code. Under the proposed changes, if such delinquent taxes are not paid before July 1 of the year they become due, taxpayers would face a 7% penalty and interest, while those delinquent on July 1 would incur a higher 12% charge, regardless of the duration of delinquency.

Contention

One notable aspect of SB2856 is the potential concern surrounding the impact of increased penalties on vulnerable populations, particularly those on fixed incomes or experiencing financial hardships. Critics may argue that heightened penalties could disproportionately affect low-income homeowners who may already struggle with tax payments. As the discussion around the bill progresses, it will likely prompt debate among legislators about the balance between enforcing tax compliance and protecting residents from excessively punitive measures.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 33. Delinquency
  • Section: 01