Relating to the postponement of the delinquency date for a payment of ad valorem taxes imposed by a taxing unit if the office of the collector for the taxing unit is closed on the delinquency date.

Contracts

• Loan Covenants: Review commercial loan agreements regarding "Events of Default." Ensure that definitions of "timely payment of taxes" reference Section 1.06 of the Tax Code to prevent a technical default if payment is made during this statutory extension period.
• Lease Agreements: Update Triple Net (NNN) lease templates. Define "delinquency" to align with the statutory extension so tenants are not penalized by landlords for utilizing this legal safety net.

Hiring/Training

• Accounts Payable/Treasury: Train staff that this is a defensive provision, not a standard operating procedure. Staff must understand that if the extension is triggered, payment must occur on the immediate next business day; a 48-hour delay will result in full penalties retroactive to the original deadline.
• Logistics: Instruct couriers or staff attempting physical delivery to document office closures (photos of signage) if encountered on a deadline.

Reporting & Record-Keeping

• Evidence of Closure: Establish a protocol to archive evidence if a payment is delayed due to closure. This includes saving email blasts from the county, taking screenshots of the Tax Assessor’s website, or photographing physical notices at the office.
• Payment Timestamping: Ensure payment instruments (wires/checks) are clearly dated for the "next regular business day" to prove compliance.

Fees & Costs

• Penalty Avoidance: This law prevents the automatic assessment of penalties and interest (typically 7% in February) caused solely by government office closures.
• No New Fees: There are no new filing fees associated with this legislation.