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.

89(R) SB 3071 - Senate Committee Report version - Bill Text

By: Bettencourt

S.B. No. 3071

(In the Senate - Filed May 12, 2025; May 12, 2025, read

first time and referred to Committee on Local Government;

May 19, 2025, reported adversely, with favorable Committee

Substitute by the following vote: Yeas 5, Nays 2; May 19, 2025,

sent to printer.)
Click here to see the committee vote

COMMITTEE SUBSTITUTE FOR S.B. No. 3071

By: Gutierrez

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 has materially

deviated from the purpose stated in the ballot for an election

required to be held under Section 26.07, in the order or resolution

ordering the election, or in an order or resolution accompanying

the ballot.

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 who owns taxable property in

the taxing unit is not required to pay the taxes imposed by the

taxing unit on the owner's property while an action to enjoin the

collection of the taxes under this subsection is pending.

If a

property owner pays the taxes and the property owner who filed the

action subsequently prevails in the action, the property owner who

paid the taxes is entitled to a refund of the taxes paid.

A property

owner is not required to apply to the collector for the taxing unit

to receive the refund.

A property owner who files an action under

this subsection and subsequently prevails is entitled to reasonable

attorney's fees and court costs.

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

Act, applies to an action filed by a property owner to enjoin the

collection of ad valorem taxes for a material deviation from the

purpose stated in the ballot for an election required to be held

under Section 26.07 of that code, in the order or resolution

ordering the election, or in an order or resolution accompanying

the ballot, only if the material deviation occurs 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.

* * * * *