HB2742 - Relating to the split-payment of ad valorem taxes.

      H.B. No. 2742         AN ACT   relating to the split-payment of ad valorem taxes.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 31.03, Tax Code, is amended by amending   Subsection (a) and adding Subsection (a-1) to read as follows:          (a)  The governing body of a taxing unit that collects its   own taxes may provide, in the manner required by law for official   action by the body, that a person who pays one-half of the taxing   unit's taxes before December 1 or, if applicable, the date provided   by Subsection (a-1) may pay the remaining one-half of the taxes   without penalty or interest before July 1 of the following year.           (a-1)     If a taxing unit that has adopted the split-payment   option provided by Subsection (a) mails its tax bills after   November 30, the first one-half of the taxing unit's taxes must be   paid before the first day of the next month following the first full   calendar month following the date the tax bills are mailed.            SECTION 2.  Section 31.04(c), Tax Code, is amended to read as   follows:          (c)  A [ payment option provided by Section 31.03 of this code   or a ] discount adopted under Section 31.05(b) [ of this code ] does   not apply to taxes that are calculated too late for it to be   available.          SECTION 3.  Section 42.08(c), Tax Code, is amended to read as   follows:          (c)  A property owner that pays an amount of taxes greater   than that required by Subsection (b) does not forfeit the property   owner's right to a final determination of the appeal by making the   payment.  The property owner may pay an additional amount of taxes   at any time.  If the property owner files a timely appeal under this   chapter, taxes paid on the property are considered paid under   protest, even if paid before the appeal is filed.  If the taxes are   subject to the split-payment option provided by Section 31.03, the   property owner may comply with Subsection (b) of this section by   paying one-half of the amount otherwise required to be paid under   that subsection before December 1 or, if applicable, the date   provided by Section 31.03(a-1) and paying the remaining one-half of   that amount before July 1 of the following year.          SECTION 4.  The changes in law made by this Act apply only to   ad valorem taxes imposed for an ad valorem tax year that begins on   or after the effective date of this Act.          SECTION 5.  This Act takes effect January 1, 2026.       ______________________________ ______________________________      President of the Senate Speaker of the House                   I certify that H.B. No. 2742 was passed by the House on April   29, 2025, by the following vote:  Yeas 146, Nays 0, 1 present, not   voting.     ______________________________   Chief Clerk of the House                 I certify that H.B. No. 2742 was passed by the Senate on May   16, 2025, by the following vote:  Yeas 31, Nays 0.     ______________________________   Secretary of the Senate       APPROVED:  _____________________                      Date                           _____________________                    Governor