Relating to the calculation of the penalty and interest incurred on a delinquent ad valorem tax.

HB 21 reduces penalties and interest rates for delinquent property taxes in Texas. It lowers the initial penalty from 6% to 3% for the first month a property tax payment is overdue, with an additional 0.5% per month thereafter (down from 1%). For taxes delinquent as of July 1, the total penalty drops from 12% to 6%. The bill applies only to penalties accruing after its effective date, not retroactively, and affects property owners who miss tax payments.