Relating to the effect of a disaster and associated costs on the calculation of certain tax rates and the procedure for adoption of a tax rate by a taxing unit.

89(R) HB 30 - Enrolled version - Bill Text

H.B. No. 30

AN ACT

relating to the effect of a disaster and associated costs on the

calculation of certain tax rates and the procedure for adoption of a

tax rate by a taxing unit.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 26.042, Tax Code, is amended by amending

Subsections (a), (f), and (g) and adding Subsections (a-1), (a-2),

and (a-3) to read as follows:

(a) Notwithstanding Sections 26.04 and 26.041, the

governing body of a taxing unit other than a school district or a

special taxing unit may direct the designated officer or employee

to calculate the voter-approval tax rate of the taxing unit in the

manner provided
by Subsection (a-2)
[
for a special taxing unit
] if

any part of the taxing unit is located in an area declared a

disaster area during the current tax year by the governor or by the

president of the United States and at least one person is granted an

exemption under Section 11.35 for property located in the taxing

unit. The designated officer or employee shall continue

calculating the voter-approval tax rate in the manner provided by

this subsection until the earlier of:

(1) the first tax year in which the total taxable value

of property taxable by the taxing unit as shown on the appraisal

roll for the taxing unit submitted by the assessor for the taxing

unit to the governing body exceeds the total taxable value of

property taxable by the taxing unit on January 1 of the tax year in

which the disaster occurred; or

(2) the third tax year after the tax year in which the

disaster occurred.

(a-1) In this section:

(1)

"Disaster relief cost" means the total amount of a

taxing unit's share of the cost associated with the following

services provided during a disaster declared by the president of

the United States or the governor during the current tax year:

(A)

the removal of debris or wreckage in the

taxing unit, as determined by an estimate:

(i)

if the disaster is declared by the

president of the United States, made under 42 U.S.C. Section 5173;

or

(ii)

if the disaster is declared by the

governor but not by the president of the United States, made by the

taxing unit using, to the extent practicable, the methods used to

make a federal estimate under 42 U.S.C. Section 5173; and

(B) essential assistance as determined by:

(i)

if the disaster was declared by the

president of the United States, a federal estimate; or

(ii)

if the disaster was declared by the

governor but not by the president of the United States, an estimate

made by the taxing unit using, to the extent practicable, the

methods used to make a federal estimate described by Subparagraph

(i).

(2)

"Disaster relief rate" means a rate expressed in

dollars per $100 of taxable value and calculated according to the

following formula:

DISASTER RELIEF RATE = (DISASTER RELIEF COST) / (CURRENT

TOTAL VALUE - NEW PROPERTY VALUE)

(3)

"Essential assistance" means the following forms

of essential assistance described by 42 U.S.C. Section 5170b:

(A) emergency sheltering of individuals;

(B)

overtime and hazardous duty compensation

provided to police, fire, and emergency medical service personnel;

(C) water testing and treatment;

(D) provision of essential supplies;

(E) search and rescue efforts;

(F) evacuation services;

(G) medical care and transport; and

(H) security measures and services.

(a-2)

The voter-approval tax rate the governing body of the

taxing unit may direct the designated officer or employee to

calculate under Subsection (a) is equal to the lesser of:

(1)

the voter-approval tax rate calculated in the

manner provided for a special taxing unit; or

(2)

the voter-approval tax rate calculated according

to the following formula:

VOTER-APPROVAL TAX RATE = (NO-NEW-REVENUE MAINTENANCE AND

OPERATIONS RATE X 1.035) + (CURRENT DEBT RATE + UNUSED INCREMENT

RATE + DISASTER RELIEF RATE)

(a-3)

A taxing unit to which Subsection (a) applies that

makes an estimate described by Subsection (a-1)(1)(A)(ii) or

(B)(ii) shall, as soon as practicable after completing the

estimate, forward the estimate to the Texas Division of Emergency

Management.

(f) If a taxing unit adopts a tax rate under Subsection [
(d)

or
] (e), the amount by which that rate exceeds the taxing unit's

voter-approval tax rate for that tax year may not be considered when

calculating the taxing unit's voter-approval tax rate for the tax

year following the year in which the taxing unit adopts the rate.

(g) A taxing unit that in a tax year elects to calculate the

taxing unit's voter-approval tax rate under Subsection (a) or adopt

a tax rate that exceeds the taxing unit's voter-approval tax rate

for that tax year without holding an election under Subsection [
(d)

or
] (e) must specify the disaster declaration that provides the

basis for authorizing the taxing unit to calculate or adopt a tax

rate under the applicable subsection. A taxing unit that in a tax

year specifies a disaster declaration as providing the basis for

authorizing the taxing unit to calculate or adopt a tax rate under

Subsection (a)[
, (d),
] or (e) may not in a subsequent tax year

specify the same disaster declaration as providing the basis for

authorizing the taxing unit to calculate or adopt a tax rate under

one of those subsections if in an intervening tax year the taxing

unit specifies a different disaster declaration as the basis for

authorizing the taxing unit to calculate or adopt a tax rate under

one of those subsections.

SECTION 2. Section 26.042(d), Tax Code, is repealed.

SECTION 3. The change in law made by this Act applies only

to an ad valorem tax year that begins on or after the effective date

of this Act.

SECTION 4. This Act takes effect January 1, 2026.

______________________________

______________________________

President of the Senate

Speaker of the House

I certify that H.B. No. 30 was passed by the House on May 8,

2025, by the following vote: Yeas 95, Nays 51, 2 present, not

voting.

______________________________

Chief Clerk of the House

I certify that H.B. No. 30 was passed by the Senate on May 15,

2025, by the following vote: Yeas 22, Nays 9.

______________________________

Secretary of the Senate

APPROVED: _____________________

Date

_____________________

Governor