H.B. No. 1286 amends Section 42.29 of the Texas Tax Code to enhance 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 increased to the greater of $25,000 or 50 percent of the total reduction in tax liability resulting from the appeal. Additionally, it introduces a new subsection (c) that removes any 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 bill also clarifies that the changes will only apply to appeals filed under Chapter 42 of the Tax Code on or after the effective date of the Act, while appeals filed before this 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)