Relating to the collection of delinquent ad valorem taxes.

HB 138 modifies Texas property tax collection rules to better protect property owners with overdue payments. It requires tax collectors to apply payments first toward the unpaid property tax amount itself, not penalties or interest, unless the owner specifies otherwise in writing. The bill also caps total penalties and interest at 5% of the delinquent tax amount, preventing excessive charges. This directly affects Texas property owners who fall behind on their annual property tax bills. The changes apply only to payments received after the law takes effect.