The bill proposes the repeal of provisions that currently allow certain taxing units to adopt an ad valorem tax rate exceeding the voter-approval tax rate in the year following a disaster without holding an election. Specifically, it amends Section 26.042 of the Tax Code to change the heading to "Voter-Approval Tax Rate of Certain Taxing Units" and modifies the language to eliminate the ability for taxing units to adopt a tax rate above the voter-approval rate without an election. Additionally, it repeals Sections 45.0032(d) of the Education Code and Sections 26.042(d), (e), and (f) of the Tax Code, which previously provided guidelines for such tax rate adoptions.

Furthermore, the bill introduces a requirement for taxing units that choose to calculate their voter-approval tax rate to specify the disaster declaration that justifies this calculation. It also stipulates that if a taxing unit specifies a disaster declaration for one tax year, it cannot use the same declaration in a subsequent year if it has already specified a different disaster in the intervening year. The changes are set to take effect on January 1, 2026, and will apply only to ad valorem taxes imposed for tax years beginning on or after that date.

Statutes affected:
Introduced: Education Code 48.202, Tax Code 26.042 (Education Code 48, Tax Code 26)