| 1 | 1 | | 88R5923 DRS-F |
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| 2 | 2 | | By: Geren, Metcalf, Toth, Cain H.B. No. 1956 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the award of attorney's fees to a prevailing property |
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| 8 | 8 | | owner in a judicial appeal of certain ad valorem tax |
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| 9 | 9 | | determinations. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Section 42.29, Tax Code, is amended to read as |
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| 12 | 12 | | follows: |
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| 13 | 13 | | Sec. 42.29. ATTORNEY'S FEES. (a) A property owner who |
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| 14 | 14 | | prevails in an appeal to the court under this chapter of a |
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| 15 | 15 | | determination of a motion under Chapter 25 or of a protest under |
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| 16 | 16 | | Chapter 41 [Section 42.25 or 42.26, in an appeal to the court of a |
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| 17 | 17 | | determination of an appraisal review board on a motion filed under |
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| 18 | 18 | | Section 25.25, or in an appeal to the court of a determination of an |
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| 19 | 19 | | appraisal review board of a protest of the denial in whole or in |
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| 20 | 20 | | part of an exemption under Section 11.17, 11.22, 11.23, 11.231, or |
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| 21 | 21 | | 11.24] may be awarded reasonable attorney's fees. Except as |
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| 22 | 22 | | provided by Subsection (c) and subject to Subsection (b), the [The] |
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| 23 | 23 | | amount of the award may not exceed the greater of: |
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| 24 | 24 | | (1) $25,000 [$15,000]; or |
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| 25 | 25 | | (2) 50 [20] percent of the total amount by which the |
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| 26 | 26 | | property owner's tax liability is reduced as a result of the appeal. |
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| 27 | 27 | | (b) Except as provided by [Notwithstanding] Subsection (c) |
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| 28 | 28 | | [(a)], the amount of an award of attorney's fees to the prevailing |
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| 29 | 29 | | property owner may not exceed [the lesser of: |
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| 30 | 30 | | [(1) $100,000; or |
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| 31 | 31 | | [(2)] the total amount by which the property owner's tax |
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| 32 | 32 | | liability is reduced as a result of the appeal. |
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| 33 | 33 | | (c) The amount of an award of attorney's fees to the |
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| 34 | 34 | | prevailing property owner is not subject to a limitation imposed by |
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| 35 | 35 | | this section if: |
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| 36 | 36 | | (1) the property owner prevails in an appeal under |
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| 37 | 37 | | Section 42.25 or 42.26; and |
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| 38 | 38 | | (2) the property owner qualifies the property as the |
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| 39 | 39 | | owner's residence homestead. |
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| 40 | 40 | | SECTION 2. The change in law made by this Act applies only |
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| 41 | 41 | | to an appeal filed under Chapter 42, Tax Code, on or after the |
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| 42 | 42 | | effective date of this Act. An appeal filed under Chapter 42, Tax |
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| 43 | 43 | | Code, before the effective date of this Act is governed by the law |
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| 44 | 44 | | in effect when the appeal was filed, and the former law is continued |
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| 45 | 45 | | in effect for that purpose. |
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| 46 | 46 | | SECTION 3. This Act takes effect immediately if it receives |
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| 47 | 47 | | a vote of two-thirds of all the members elected to each house, as |
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| 48 | 48 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 49 | 49 | | Act does not receive the vote necessary for immediate effect, this |
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| 50 | 50 | | Act takes effect September 1, 2023. |
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