Senate Bill No. 3071, introduced by Bettencourt, aims to empower property owners to seek an injunction against the collection of ad valorem taxes if a taxing unit adopts a tax rate that exceeds the voter-approval tax rate and subsequently deviates materially from the stated purpose of the tax increase. The bill defines "materially deviate" to include significant changes in the purpose, financing structure, cost increases exceeding 33%, reductions in scope, legal non-conformity, or any actions that impair voter expectations.

The bill amends the Tax Code by adding provisions that allow property owners to file for an injunction within 15 days of the tax rate adoption, ensuring they are not required to pay taxes while the injunction is pending. If the property owner prevails in the action, they are entitled to a refund of any taxes paid and may also recover reasonable attorney's fees and court costs. The provisions apply only to actions filed for material deviations occurring on or after the effective date of the Act, which will take effect immediately upon a two-thirds vote or on September 1, 2025, if that vote is not achieved.

Statutes affected:
Introduced: Tax Code 26.012, Tax Code 26.05 (Tax Code 26)
Senate Committee Report: Tax Code 26.012, Tax Code 26.05 (Tax Code 26)