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      By: Muñoz H.B. No. 5268       A BILL TO BE ENTITLED   AN ACT   relating to the maximum amount of penalties that may be imposed for   delinquent taxes and tax reports and the application of taxpayer   payments to taxes, penalties, and interest.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter B, Chapter 111, Tax Code, is amended   by adding Section 111.0512 to read as follows:           Sec.   111.0512.     APPLICATION OF TAX PAYMENTS.   Notwithstanding any other law, the comptroller shall apply a   payment made by a taxpayer to the amount of tax due before applying   any portion of the payment to a penalty or interest owed by the   taxpayer unless the taxpayer provides written instructions for a   different application of the payment.          SECTION 2.  Section 111.061, Tax Code, is amended by adding   Subsection (a-1) to read as follows:           (a-1)     Notwithstanding any other law, a penalty imposed on a   person who fails to pay a tax imposed or file a report required by   Title 2 or 3 of this code when due may not exceed $500. This   subsection does not apply to a penalty provided by Subsection (b).          SECTION 3.  Section 111.0512, Tax Code, as added by this Act,   applies only to a payment received on or after the effective date of   this Act. A payment received before the effective date of this Act   is governed by the law in effect on the date the payment was   received, and the former law is continued in effect for that   purpose.          SECTION 4.  Section 111.061, Tax Code, as amended by this   Act, applies only to an amount of tax or a tax report that is   originally due on or after the effective date of this Act. A penalty   in connection with an amount of tax or a tax report that was   originally due before the effective date of this Act is governed by   the law in effect on the date the tax or tax report was originally   due, and the former law is continued in effect for that purpose.          SECTION 5.  This Act takes effect September 1, 2025.