Bill > SB3071

This bill addresses property owners' rights to challenge tax increases by local taxing units if those units deviate significantly from the originally stated purpose of a tax increase. The bill defines "materially deviate" as making substantial changes to a tax purpose, such as significantly altering the purpose, financing structure, increasing costs by over 33%, reducing project scope, or undermining voter expectations. Under the proposed legislation, a property owner can seek an injunction to stop tax collection if a taxing unit materially deviates from its original ballot proposition or election resolution. The property owner must file this injunction within 15 days of the taxing unit adopting a tax rate and is not required to pay the contested taxes while the legal action is pending. If the property owner prevails in the lawsuit, they are entitled to recover attorney's fees and court costs, and if they have already paid the taxes, they can receive a full refund without needing to apply to the tax collector. The bill applies only to material deviations occurring on or after its effective date, which will be immediately if it receives a two-thirds vote in the Texas Legislature, or September 1, 2025, if it does not receive immediate approval.

Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB3071