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TX HB3879
Bill
Status
3/5/2025
Primary Sponsor
Ellen Troxclair
Click for details
AI Summary
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Property owners may obtain an injunction to stop ad valorem tax collection if a taxing unit materially deviates from the stated purpose of a voter-approved tax rate increase
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"Material deviation" is defined as significant changes including: change in purpose, change in financing structure, cost increases exceeding 33 percent, significant reduction in scope/scale, legal determinations of non-conformity with law, or other actions that substantially impair voter expectations
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Property owners must file an injunction action within 15 days of the taxing unit adopting a tax rate, and are not required to pay the disputed taxes while litigation is pending
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Property owners who paid taxes and subsequently prevail in an injunction action are entitled to a refund without needing to apply to the tax collector
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Prevailing property owners are entitled to recover reasonable attorney's fees and court costs; the act applies only to material deviations occurring on or after the effective date (immediately upon two-thirds legislative approval or September 1, 2025)
Legislative Description
Relating to the authority of a property owner to obtain an injunction restraining the collection of ad valorem taxes by a taxing unit if the taxing unit adopts a tax rate that exceeds the voter-approval tax rate and subsequently takes an action that constitutes a material deviation from the stated purpose of the tax increase.
Taxation
Last Action
Committee report sent to Calendars
5/10/2025