H.B. No. 1286 amends Section 42.29 of the Texas Tax Code to modify the provisions regarding the award of attorney's fees to property owners who prevail in judicial appeals related to ad valorem tax determinations. The bill allows a prevailing property owner to be awarded reasonable attorney's fees, with the maximum amount now set at the greater of $25,000 or 50 percent of the total reduction in the property owner's tax liability due to the appeal. Additionally, the bill introduces a new provision that removes limitations on attorney's fees if the property owner prevails in an appeal under Sections 42.25 or 42.26 and qualifies the property as their residence homestead.

The changes also include the deletion of previous limits on attorney's fees, which were capped at $100,000 or the total amount by which the property owner's tax liability was reduced. The new law will apply only to appeals filed under Chapter 42 of the Tax Code on or after the effective date of the Act, while appeals filed before that date will continue to be governed by the previous law. The Act is set to take effect immediately upon receiving a two-thirds vote from both houses of the legislature or on September 1, 2025, if such a vote is not achieved.

Statutes affected:
Introduced: Tax Code 42.29 (Tax Code 42)