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 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, scope reductions, legal determinations of non-conformity with law, and 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 they 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 upon receiving a two-thirds vote from both houses or on the 91st day after the legislative session if such a vote is not achieved.

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