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

89(R) SB 1449 - Senate Committee Report version - Bill Text

By: Bettencourt

S.B. No. 1449

(In the Senate - Filed February 19, 2025; March 6, 2025,

read first time and referred to Committee on Local Government;

April 22, 2025, reported adversely, with favorable Committee

Substitute by the following vote: Yeas 5, Nays 2; April 22, 2025,

sent to printer.)
Click here to see the committee vote

COMMITTEE SUBSTITUTE FOR S.B. No. 1449

By: Bettencourt

A BILL TO BE ENTITLED

AN ACT

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

debris or wreckage 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) or (a-3), as applicable,
[
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 debris cost" means a taxing unit's share

of the cost to remove debris or wreckage in the taxing unit as

determined by an estimate made under 42 U.S.C. Section 5173.

(2)

"Disaster debris rate" means a rate expressed in

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

following formula:

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

TOTAL VALUE - NEW PROPERTY VALUE)

(a-2)

This subsection applies only to a taxing unit that is

wholly or partly located in an area declared a disaster area by the

president of the United States and for which an estimate has been

made under 42 U.S.C. Section 5173 relating to the cost to remove

debris or wreckage in the taxing unit.

For a taxing unit to which

this subsection applies, 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 DEBRIS RATE)

(a-3)

For a taxing unit to which Subsection (a) applies but

Subsection (a-2) does not apply, the governing body of the taxing

unit may direct the designated officer or employee to calculate the

voter-approval tax rate in the manner provided for a special taxing

unit.

(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.

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