Bill > HB3879

This bill introduces new provisions related to ad valorem taxes (property taxes) that give property owners additional legal recourse if a taxing unit materially deviates from the purpose of a tax increase originally proposed to voters. The bill defines "materially deviate" as making significant changes to the stated purpose, such as altering the financing structure, increasing costs by more than 33%, reducing the project's scope, or substantially impairing voters' original expectations. Property owners can now seek an injunction to stop tax collection if they believe a taxing unit has materially deviated from its original stated purpose. To pursue this legal action, owners must file within 15 days of the taxing unit adopting a tax rate, and they are not required to pay the contested taxes while the legal action is pending. If a property owner successfully proves material deviation, they are entitled to reasonable attorney's fees and court costs, and if they have already paid the taxes, they can receive a full refund. The bill will take effect immediately if it receives a two-thirds vote in the Texas Legislature, or on September 1, 2025, if it does not receive the necessary immediate approval vote.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB3879