Texas Senate Bill SB1191

Texas 2017 - 85th Regular

Caption

Relating to remedies in certain taxpayer suits against the state.

Impact

The impact of SB1191 upon state laws is significant as it alters how taxpayer lawsuits are managed, particularly those concerning grievances against state taxation procedures. By removing the possibility of recovering attorney's fees, opponents argue that SB1191 could discourage individuals from filing lawsuits, thereby reducing accountability for state agencies and possibly undermining taxpayers' ability to seek legal recourse against what they might perceive as unjust tax regulations. This legislative change notably shifts the burden of legal costs away from the state, potentially creating a chilling effect on taxpayer litigation and limiting judicial remedy options.

Summary

SB1191 is a legislative bill focused on revising the remedies available in taxpayer suits against the state of Texas. Specifically, it amends Section 112.108 of the Tax Code, clarifying that a court is prohibited from awarding attorney's fees or costs to a prevailing party when granting declaratory relief against the state, state agencies, or state officers in tax-related actions. This means that even if a taxpayer wins a suit regarding the applicability or constitutionality of a tax, they cannot collect their attorney's fees from the state. This revision seeks to restrict the financial implications of losing legal actions against the state for taxpayers, diluting their incentive to pursue such disputes in court without the assurance of recovering legal costs.

Contention

Notable points of contention surrounding SB1191 include opinions on state accountability and taxpayer rights. Advocates for the bill claim it serves to protect the state from undue financial burdens stemming from litigation and reflects a necessary limitation on legal claims that could burden state resources. Conversely, critics express concern that the bill severely limits the ability of taxpayers to hold state authorities accountable, particularly in situations where the constitutionality of tax laws is challenged. These discussions highlight a fundamental divide regarding the balance of power between state government authority and taxpayer rights.