S.B. No. 1449, introduced by Bettencourt, aims to modify the calculation of certain tax rates and the procedures for adopting tax rates by taxing units in Texas that are affected by disasters. The bill amends Section 26.042 of the Tax Code, allowing taxing units, excluding school districts, to calculate their voter-approval tax rate differently if they are located in a disaster area declared by the governor or the president of the United States. New subsections (a-1), (a-2), and (a-3) are added to define "disaster debris cost" and "disaster debris rate," and to outline the specific calculations for determining the voter-approval tax rate based on disaster-related costs.

Additionally, the bill repeals subsection (d) of Section 26.042 and makes it clear that if a taxing unit adopts a tax rate that exceeds its voter-approval tax rate, this excess cannot be considered in future calculations for the following tax year. The changes will only apply to ad valorem tax years beginning on or after January 1, 2026, which is the effective date of the Act. Overall, the bill seeks to provide more flexibility for taxing units in managing tax rates in the aftermath of disasters while ensuring that the process remains transparent and accountable.

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)