HB1392

Regular Session

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.

LowStandard timeline

Low Cost

Effective:2026-01-01

Enforcing Agencies

County Tax Assessor-Collectors • Municipal Tax Offices • Appraisal Districts (acting as collectors)

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

Effective Date: January 1, 2026
Compliance Deadline: January 31, 2026 (The first major delinquency date occurring after the effective date).
Agency Rulemaking: No specific rulemaking is mandated for the Comptroller; however, local Tax Assessor-Collectors will likely issue individual guidance regarding what constitutes an "official closure" versus a temporary suspension of services.

Immediate Action Plan

Q4 2025: Update internal tax compliance calendars to flag January 1, 2026, as the start date for this rule.
Immediate: Advise Treasury teams that standard deadlines apply for the remainder of 2025; this law offers no retroactive protection for current tax years.
Documentation: Create a "Tax Payment Exception" folder to house proof of closure for any payments made under this provision starting in 2026.
Legal Review: Audit standard lease and loan language to ensure "timely payment" definitions accommodate statutory extensions.

Operational Changes Required

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.

Strategic Ambiguities & Considerations

Physical vs. Digital "Office": The statute applies when the "office of the collector... is closed." It does not explicitly address online payment portal failures. Risk: A Tax Assessor may argue that while the physical doors were locked, the "digital office" was open. Do not rely on this statute to excuse late payments caused by website crashes unless future Comptroller rules explicitly equate portal downtime with office closure.
Partial Closures: The law does not define if an early closure (e.g., closing at 3:00 PM due to weather) constitutes being "closed on the delinquency date." Businesses should assume the office must be accessible during standard business hours, but this remains a potential dispute point.

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Legislative Timeline

This bill's path through the Texas Legislature

TopicsDisaster Preparedness & Relief Holidays Taxation Taxation--property-assessment & Collection

Official Analysis

View HRO Analysis View All Bill Documents

BILL ANALYSIS

H.B. 1392

By: Bucy

Ways & Means

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Current state statute relating to property tax payments establishes limited exceptions for postponing delinquency dates in that the only circumstances for postponement are when the payment deadline falls on a weekend or on a legal state or national holiday. As a result, tax payments may be considered delinquent even when the taxing unit's office is closed on the payment due date, such as due to a natural disaster. H.B. 1392 seeks to address this issue by providing for the postponement of a property tax delinquency date if the taxing unit's office is closed on that day, so long as the payment is made the next regular business day.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 1392 amends the Tax Code to establish that the payment of taxes imposed by a taxing unit under the Property Tax Code is considered timely if the last day to pay the taxes is on a day on which the tax collector's office is closed and the taxes are paid on the next regular business day.

EFFECTIVE DATE

January 1, 2026.

House Authors

Rep. John BucyDemocrat · Primary Author

Joint Authors

Erin Zwiener (D)

Coauthors (5)

Senate Sponsor

Sen. Paul BettencourtRepublican · Primary Sponsor

Bill Text(with markup)

H.B. No. 1392

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

	AN ACT
	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.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Section 1.06, Tax Code, is amended to read as
	follows:
	Sec. 1.06. EFFECT OF WEEKEND, [OR] HOLIDAY, OR OFFICE
	CLOSURE. An act is timely if:
	(1) [If] the last day for the performance of the [an]
	act is:
	(A) a Saturday, Sunday, or legal state or
	national holiday; or
	(B) in the case of a payment of taxes imposed by a
	taxing unit, a day on which the office of the collector for the
	taxing unit is closed; and
	(2) [,] the act is [~~timely if~~] performed on the next
	regular business day.
	SECTION 2. This Act takes effect January 1, 2026.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


March 14, 2025

TO:	Honorable Morgan Meyer, Chair, House Committee on Ways & Means

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	HB1392 by Bucy (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.), As Introduced

No fiscal implication to the State is anticipated.

The bill would classify a tax payment as timely if it is made the next regular business day if the office of the tax assessor-collector for the taxing unit is closed on the day the payment is due.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

304 Comptroller of Public Accounts

LBB Staff:

JMc, KK, SD, BRI

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Frequently Asked Questions

Common questions about HB1392

What does Texas HB1392 do?

HB1392 amends the Texas Tax Code to mandate that ad valorem tax payments are legally timely if made on the next business day following a closure of the tax collector's office on the delinquency date. This legislation provides a statutory defense against penalties and interest for all Texas property owners but requires strict adherence to the "next business day" rule to avoid immediate default. Implementation Timeline Effective Date: January 1, 2026 Compliance Deadline: January 31, 2026 (The first major delinquency date occurring after the effective date).

Who authored HB1392?

HB1392 was authored by Texas Representative John Bucy during the Regular Session.

When was HB1392 signed into law?

HB1392 was signed into law by Governor Greg Abbott on May 24, 2025.

Which agencies enforce HB1392?

HB1392 is enforced by County Tax Assessor-Collectors, Municipal Tax Offices and Appraisal Districts (acting as collectors).

How urgent is compliance with HB1392?

The compliance urgency for HB1392 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

What is the cost impact of HB1392?

The cost impact of HB1392 is estimated as "low". This may vary based on industry and implementation requirements.

What topics does HB1392 address?

HB1392 addresses topics including disaster preparedness & relief, holidays, taxation and taxation--property-assessment & collection.

Legislative data provided by LegiScanLast updated: November 25, 2025

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