TX HB5012

Requires the comptroller to apply taxpayer payments to the principal tax amount due before applying any portion to penalties or interest, unless the taxpayer provides written instructions for a different application

Reduces the maximum penalty for failure to pay taxes or file required reports under Title 2 or 3 of the Tax Code to 5% of the tax due

Eliminates the additional 5% penalty that was previously imposed when taxes or reports remained delinquent more than 30 days after the due date

Caps penalties for delinquent taxes and tax reports at the amounts specified in the amended statute, notwithstanding any other law that might provide higher penalties (except where another law provides a lower penalty)

Takes effect September 1, 2025, and applies only to payments received and taxes/reports originally due on or after that date