Relating to the collection of delinquent ad valorem taxes.

HB 5292 modifies Texas property tax collection rules to protect homeowners with overdue taxes. It requires tax collectors to apply payments first toward the original tax amount (not penalties or interest) unless the owner specifies otherwise, and caps total penalties/interest at 5% of the unpaid tax. These changes directly affect property owners who fall behind on taxes, ensuring payments reduce the principal debt first and limiting financial penalties. The bill takes effect September 1, 2025, and applies only to payments received after that date.