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A BILL TO BE ENTITLED
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AN ACT
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relating to the award of attorney's fees to a prevailing property |
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owner in a judicial appeal of certain ad valorem tax |
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determinations. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 42.29, Tax Code, is amended to read as |
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follows: |
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Sec. 42.29. ATTORNEY'S FEES. (a) A property owner who |
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prevails in an appeal to the court under this chapter of a |
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determination of a motion under Chapter 25 or of a protest under |
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Chapter 41 [Section 42.25 or 42.26, in an appeal to the court of a |
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determination of an appraisal review board on a motion filed under |
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Section 25.25, or in an appeal to the court of a determination of an |
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appraisal review board of a protest of the denial in whole or in |
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part of an exemption under Section 11.17, 11.22, 11.23, 11.231, or |
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11.24] may be awarded reasonable attorney's fees. Except as |
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provided by Subsection (c) and subject to Subsection (b) , the [The] |
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amount of the award may not exceed the greater of: |
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(1) $25,000 [$15,000]; or |
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(2) 50 [20] percent of the total amount by which the |
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property owner's tax liability is reduced as a result of the appeal. |
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(b) Except as provided by [Notwithstanding] Subsection (c) |
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[(a)], the amount of an award of attorney's fees to the prevailing |
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property owner may not exceed [the lesser of: |
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[(1) $100,000; or |
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[(2)] the total amount by which the property owner's |
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tax liability is reduced as a result of the appeal. |
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(c) The amount of an award of attorney's fees to the |
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prevailing property owner is not subject to a limitation imposed by |
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this section if: |
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(1) the property owner prevails in an appeal under |
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Section 42.25 or 42.26; and |
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(2) the property owner qualifies the property as the |
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owner's residence homestead. |
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SECTION 2. The change in law made by this Act applies only |
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to an appeal filed under Chapter 42, Tax Code, on or after the |
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effective date of this Act. An appeal filed under Chapter 42, Tax |
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Code, before the effective date of this Act is governed by the law |
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in effect when the appeal was filed, and the former law is continued |
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in effect for that purpose. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2025. |