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A BILL TO BE ENTITLED
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AN ACT
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relating to the effect of a disaster and associated costs to remove |
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debris or wreckage on the calculation of certain tax rates and the |
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procedure for adoption of a tax rate by a taxing unit. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 26.042, Tax Code, is amended by amending |
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Subsections (a), (f), and (g) and adding Subsections (a-1), (a-2), |
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and (a-3) to read as follows: |
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(a) Notwithstanding Sections 26.04 and 26.041, the |
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governing body of a taxing unit other than a school district or a |
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special taxing unit may direct the designated officer or employee |
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to calculate the voter-approval tax rate of the taxing unit in the |
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manner provided by Subsection (a-2) or (a-3), as applicable, [for a |
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special taxing unit] if any part of the taxing unit is located in an |
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area declared a disaster area during the current tax year by the |
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governor or by the president of the United States and at least one |
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person is granted an exemption under Section 11.35 for property |
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located in the taxing unit. The designated officer or employee |
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shall continue calculating the voter-approval tax rate in the |
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manner provided by this subsection until the earlier of: |
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(1) the first tax year in which the total taxable value |
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of property taxable by the taxing unit as shown on the appraisal |
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roll for the taxing unit submitted by the assessor for the taxing |
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unit to the governing body exceeds the total taxable value of |
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property taxable by the taxing unit on January 1 of the tax year in |
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which the disaster occurred; or |
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(2) the third tax year after the tax year in which the |
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disaster occurred. |
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(a-1) In this section: |
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(1) "Disaster debris cost" means a taxing unit's share |
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of the cost to remove debris or wreckage in the taxing unit as |
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determined by an estimate made under 42 U.S.C. Section 5173. |
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(2) "Disaster debris rate" means a rate expressed in |
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dollars per $100 of taxable value and calculated according to the |
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following formula: |
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DISASTER DEBRIS RATE = (DISASTER DEBRIS COST) / (CURRENT |
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TOTAL VALUE - NEW PROPERTY VALUE) |
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(a-2) This subsection applies only to a taxing unit that is |
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wholly or partly located in an area declared a disaster area by the |
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president of the United States and for which an estimate has been |
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made under 42 U.S.C. Section 5173 relating to the cost to remove |
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debris or wreckage in the taxing unit. For a taxing unit to which |
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this subsection applies, the voter-approval tax rate the governing |
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body of the taxing unit may direct the designated officer or |
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employee to calculate under Subsection (a) is equal to the lesser |
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of: |
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(1) the voter-approval tax rate calculated in the |
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manner provided for a special taxing unit; or |
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(2) the voter-approval tax rate calculated according |
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to the following formula: |
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VOTER-APPROVAL TAX RATE = (NO-NEW-REVENUE MAINTENANCE AND |
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OPERATIONS RATE X 1.035) + (CURRENT DEBT RATE + UNUSED INCREMENT |
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RATE + DISASTER DEBRIS RATE) |
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(a-3) For a taxing unit to which Subsection (a) applies but |
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Subsection (a-2) does not apply, the governing body of the taxing |
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unit may direct the designated officer or employee to calculate the |
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voter-approval tax rate in the manner provided for a special taxing |
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unit. |
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(f) If a taxing unit adopts a tax rate under Subsection [(d) |
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or] (e), the amount by which that rate exceeds the taxing unit's |
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voter-approval tax rate for that tax year may not be considered when |
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calculating the taxing unit's voter-approval tax rate for the tax |
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year following the year in which the taxing unit adopts the rate. |
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(g) A taxing unit that in a tax year elects to calculate the |
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taxing unit's voter-approval tax rate under Subsection (a) or adopt |
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a tax rate that exceeds the taxing unit's voter-approval tax rate |
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for that tax year without holding an election under Subsection [(d) |
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or] (e) must specify the disaster declaration that provides the |
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basis for authorizing the taxing unit to calculate or adopt a tax |
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rate under the applicable subsection. A taxing unit that in a tax |
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year specifies a disaster declaration as providing the basis for |
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authorizing the taxing unit to calculate or adopt a tax rate under |
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Subsection (a)[, (d),] or (e) may not in a subsequent tax year |
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specify the same disaster declaration as providing the basis for |
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authorizing the taxing unit to calculate or adopt a tax rate under |
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one of those subsections if in an intervening tax year the taxing |
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unit specifies a different disaster declaration as the basis for |
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authorizing the taxing unit to calculate or adopt a tax rate under |
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one of those subsections. |
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SECTION 2. Section 26.042(d), Tax Code, is repealed. |
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SECTION 3. The change in law made by this Act applies only |
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to an ad valorem tax year that begins on or after the effective date |
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of this Act. |
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SECTION 4. This Act takes effect January 1, 2026. |