Texas House Bill HB907

Texas 2009 - 81st Regular

Caption

Relating to liability for and payment of the fees of an attorney ad litem in a suit to collect delinquent ad valorem taxes.

Impact

The amendments introduced by HB 907 specifically address financial obligations of taxing units in the litigation process pertaining to tax collection. By mandating that attorney ad litem fees be paid from the general fund, the bill ensures that attorneys representing taxing units are compensated promptly. Furthermore, it includes a provision that allows taxing units to seek reimbursement for these fees from other taxing units as outlined in existing law. This could potentially change the fiscal dynamics for local governments dealing with tax collection lawsuits, as they will have clear guidelines on their financial liabilities.

Summary

House Bill 907 seeks to amend the Tax Code regarding the liability of taxing units for attorney ad litem fees in lawsuits aimed at collecting delinquent ad valorem taxes. The bill establishes that, except for certain provisions, taxing units are generally not liable for court costs and fees when involved in a suit to collect taxes. This includes any costs related to service of process, arbitration, or mediation. Notably, the bill stipulates that taxing units must cover reasonable attorney ad litem fees as approved by the court, which are to be paid from the taxing unit's general fund promptly upon receipt of the claim for payment.

Contention

One point of potential contention relates to the timing of reimbursement and the overall fiscal impact on local governments. Some stakeholders may argue that the requirement to pay attorney fees from the general fund could strain resources, especially for smaller taxing units with limited budgets. Opposition could also arise from concerns that this provision may not adequately prevent the escalation of legal costs in tax collection, ultimately leading to increased financial burdens on residents through higher taxes or reduced local services.