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Bill

HB 2742

Relating to the split-payment of ad valorem taxes.

89th Legislature (2025) Introduced by Carrie Isaac and 4 co-sponsors

HB 2742 permits Texas property owners to split annual ad valorem tax payments into multiple installments, effective January 1, 2026, improving payment flexibility.

Effective on 1/1/26
#taxation--property-assessment&collection(i0798)
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Bill Summary · HB 2742

Legislative bill overview

HB 2742 allows Texas property owners to split their annual ad valorem (property) tax payments into multiple installments rather than paying in one or two lump sums. The bill modifies the existing tax payment structure to provide greater flexibility for property owners managing their tax obligations.

Why is this important

Property taxes represent one of the largest annual expenses for homeowners and businesses in Texas. Allowing split payments can improve cash flow management for property owners, particularly those on fixed incomes or with irregular income streams, while potentially reducing the financial strain of large single payments.

Potential points of contention

  • Administrative burden: Counties must implement new payment processing systems and procedures, potentially increasing administrative costs that could affect taxpayers
  • Revenue timing concerns: Allowing staggered payments may delay tax revenue collection for local governments, affecting budgeting and service delivery planning
  • Interest and penalties: Unclear whether split payments carry different penalty or interest structures, which could disadvantage some taxpayers or create complexity in enforcement

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

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