Bill Text: TX HB30 | 2025-2026 | 89th Legislature | Enrolled

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Bill Title: 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.

Sponsorship: Partisan Bill (Republican 17)

Status: (Passed) 2025-05-28 - Effective on 1/1/26 [HB30 Detail]

Download: Texas-2025-HB30-Enrolled.html

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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