What is the maximum interest rate applied to taxes due after a land use change in Texas?

In Texas, when there is a change in land use that results in a rollback of property taxes, the maximum interest rate applied to the taxes due is established by law. This rate is set at 7 percent. This means that for property owners who experience an increase in their property taxes due to a change in the use of their land, they can be charged interest at this rate on the amount owed.

The reasoning behind setting the interest rate at this level is to encourage compliance with tax laws and to provide a financial framework that balances the interests of municipalities with the rights of property owners. It helps ensure that property owners are aware of the potential financial implications of changing the use of their property and can plan accordingly.