Bettencourt Tax Injunction Bill Gives Owners 15 Days To Sue

The text as introduced · 508 words

89R30235 TJB-F

By: Bettencourt
S.B. No. 3071

A BILL TO BE ENTITLED

AN ACT

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.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 26.012, Tax Code, is amended by adding

Subdivision (16-a) to read as follows:

(16-a) "Materially deviate" means to make a

significant change in carrying out the purpose stated to voters on a

ballot proposition, stated in any order or resolution calling for

an election required under this chapter, or stated in resolutions

adopted to accompany or supplement a ballot proposition, including:

(A) a significant change in purpose;

(B) a significant change in the financing

structure for the purpose;

(C) an increase of more than 33 percent in actual

or projected costs of the purpose;

(D) a significant reduction in scope or scale of

the purpose;

(E) a legal determination, including a finding

under Chapter 1202 or 1205, Government Code, that the purpose

stated on the ballot proposition or any order or resolution calling

for an election required under this chapter was not in conformity

with law; or

(F) any other attempt to substantially impair the

rights and expectations of the voters as they existed at the time of

the election.

SECTION 2. Section 26.05, Tax Code, is amended by adding

Subsection (e-2) to read as follows:

(e-2) A person who owns taxable property is entitled to an

injunction restraining the collection of taxes by a taxing unit in

which the property is taxable if the taxing unit materially

deviates from the purpose stated at the time the voters approved a

tax rate under this chapter. An action to enjoin the collection of

taxes must be filed not later than the 15th day after the date the

taxing unit adopts a tax rate. A property owner is not required to

pay the taxes imposed by a taxing unit on the owner's property while

an action filed by a property owner under this subsection is

pending. If the property owner pays the taxes and subsequently

prevails in the action, the property owner is entitled to a refund

of the taxes paid, together with reasonable attorney's fees and

court costs. The property owner is not required to apply to the

collector for the taxing unit to receive the refund.

SECTION 3. Section 26.05(e-2), Tax Code, as added by this

Act, applies only to an ad valorem tax rate adopted on or after the

effective date of this Act.

SECTION 4. This Act takes effect immediately if it receives

a vote of two-thirds of all the members elected to each house, as

provided by Section 39, Article III, Texas Constitution. If this

Act does not receive the vote necessary for immediate effect, this

Act takes effect September 1, 2025.