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Bill

HB 3473

Relating to the electronic payment of ad valorem taxes; authorizing a fee.

89th Legislature (2025) Introduced by Cody Vasut

HB 3473 authorizes Texas taxing units to charge fees for electronic property tax payments, potentially generating revenue but risking regressive impacts on lower-income taxpayers.

Referred to Ways & Means
#countytaxassessor-collectors(s0310) #electronicinformationsystems(i0311) #taxation--property-appraisals&appraisaldistricts(i0792) #taxation--property-assessment&collection(i0798) #taxation--property-miscellaneous(i0797)
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Bill Summary · HB 3473

Legislative bill overview

HB 3473 authorizes Texas counties and taxing units to charge a fee when property owners pay ad valorem (property) taxes electronically. Currently, these electronic payment services are typically offered without direct fees to taxpayers, though processing costs exist. The bill would create a legal framework allowing taxing authorities to pass transaction costs to users who choose online payment methods.

Why is this important

Property tax payments represent billions of dollars annually in Texas, and the shift toward electronic payment has grown significantly. Allowing fees could either generate revenue for local governments to offset payment processing costs or create a financial disincentive for taxpayers to use convenient digital payment methods, potentially driving some back to in-person or check payments.

Potential points of contention

  • Regressive impact: Fees on electronic payments may disproportionately burden lower-income taxpayers who rely on online convenience, effectively creating a "convenience tax" on vulnerable populations
  • Fee structure uncertainty: The bill authorizes fees but doesn't cap or standardize them, allowing significant variation across counties that could create fairness questions
  • Payment method equity: Charging for electronic payments while keeping traditional methods free could incentivize outdated payment systems and reduce efficiency, contradicting government modernization goals

Compiled from official sources — confirm details with the bill’s official record.

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