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 states there is no limitation on the award of 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 removes previous limitations on attorney's fees, which capped awards at $100,000 or the total amount by which the property owner's tax liability was reduced. The changes 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 former law. The Act is set to take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if such a vote is not achieved.

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