Relating to the penalties and interest that may be incurred on delinquent ad valorem taxes imposed on a residence homestead.

SB 2856 modifies Texas property tax penalties for delinquent homestead taxes. It sets a flat 7% total penalty/interest for qualifying homestead taxes unpaid before July 1 of the delinquency year (Section 1(g)), and a flat 12% total for taxes delinquent on July 1 regardless of how long overdue (Section 1(h)). These changes apply only to taxes becoming delinquent on or after September 1, 2025, leaving prior delinquencies governed by older law. The bill directly affects homeowners with primary residences qualifying for the Section 11.13 homestead exemption who miss tax payments.