S.B. No. 3071 aims to enhance the rights of property owners regarding the collection of ad valorem taxes by allowing them to seek an injunction 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 introduces new definitions and provisions in the Tax Code, specifically adding a definition for "materially deviate" which includes significant changes in purpose, financing structure, cost increases, or reductions in scope, among other criteria.

Additionally, the bill stipulates that property owners can file for an injunction within 15 days of the tax rate adoption if they believe there has been a material deviation. While the injunction is pending, property owners are not required to pay the taxes imposed by the taxing unit. If they have already paid the taxes and later prevail in their action, they are entitled to a refund without needing to apply to the tax collector, as well as reasonable attorney's fees and court costs. The provisions of this bill will apply only to actions filed after its effective date, which is immediate 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)