The bill, H.B. No. 47, 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 introduces a new definition of "materially deviate," which includes significant changes in the purpose, financing structure, cost increases exceeding 33%, reductions in scope, legal non-conformity, or any actions that impair voter expectations.

Additionally, the bill establishes that property owners can file for an injunction within 15 days of the tax rate adoption and are not required to pay the taxes while the injunction is pending. If they prevail in their action, they are entitled to a refund of any taxes paid and may also recover reasonable attorney's fees and court costs. The provisions of this bill will apply only to actions filed for material deviations occurring on or after the effective date of the Act. The Act will take effect immediately if it receives a two-thirds vote from both houses; otherwise, it will take effect 91 days after the legislative session ends.

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