HB30 - 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.

      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