S.B. No. 1449, introduced by Bettencourt, amends the Texas Tax Code to address the impact of disasters on tax rate calculations and the procedures for adopting tax rates by taxing units. The bill allows governing bodies of taxing units, excluding school districts, to calculate the voter-approval tax rate differently if any part of the unit is in a disaster area declared by the governor or the president, and if at least one property exemption is granted. New provisions define "disaster debris cost" and "disaster debris rate," establishing formulas for calculating these rates based on the costs associated with debris removal in disaster-affected areas.

Additionally, the bill repeals a previous subsection related to tax rate calculations and specifies that if a taxing unit adopts a tax rate exceeding the voter-approval rate, that excess cannot be considered in the following year's calculations. It also requires taxing units to specify the disaster declaration that justifies their tax rate calculations and limits the ability to cite the same disaster declaration in subsequent years if a different one has been used in the interim. The changes will take effect on January 1, 2026, and apply to ad valorem 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)
Senate Committee Report: Tax Code 26.042 (Education Code 48, Tax Code 26)