Relating to fees taxed as costs of suit for certain delinquent tax suits.
The implementation of HB 3389 is expected to create a more structured approach to the imposition of costs in delinquent tax suits. By ensuring that fees are only awarded when meaningful proceedings have taken place, the bill could potentially reduce unnecessary financial burdens on defendants in tax cases, thereby offering some level of protection against unjust charges when cases do not progress sufficiently. Furthermore, this amendment is applicable only to suits filed after the effective date, September 1, 2017, indicating a targeted approach that safeguards defendants in future cases.
House Bill 3389 addresses the collection of fees taxed as costs of suit specifically for certain delinquent tax suits in Texas. The bill modifies the Tax Code to stipulate that district clerks must collect these fees whenever a master is appointed for a delinquent tax suit, regardless of the case's outcome. Notably, fees shall not be collected or awarded in cases that are dismissed unless specific conditions are met, such as the existence of a hearing or a minimum preparation requirement equivalent to that of a hearing.
Overall, the sentiment surrounding HB 3389 appears to be cautiously positive among lawmakers. The passage of the bill with broad bipartisan support—145 in favor with no opposition in the House and a substantial majority in the Senate—reflects a collective agreement on the need for reform in handling court costs associated with delinquent tax suits. Lawmakers seem to anticipate that the bill’s provisions will enhance fairness in the judicial process, particularly for taxpayers facing tax delinquency issues.
While there seems to be general support for HB 3389, potential contention may arise concerning how these new fee collection measures will be implemented and enforced. If the criteria for waiving fees in dismissed cases are perceived as too lenient or too strict, this could lead to disagreements among legal professionals and possibly complicate tax litigation processes. Additionally, the effectiveness of the bill in alleviating the financial implications of delinquent tax suits for defendants remains to be evaluated in practice.