The bill, H.B. No. 88, proposes amendments to the Tax Code regarding the calculation of the voter-approval tax rate for taxing units located in large federally declared disaster areas. It introduces the definition of a "large disaster area taxing unit," which includes counties with a majority of their territory in a disaster area consisting of at least three counties, as well as other taxing units predominantly located in such counties. The bill also modifies the voter-approval tax rate calculation for these units, allowing them to calculate their rate in a manner similar to special taxing units.

Additionally, the bill specifies that for large disaster area taxing units, the voter-approval tax rate will be calculated according to the provisions for special taxing units, while for other taxing units, it will be determined by a formula that includes various operational and debt rates. The changes will take effect on January 1, 2026, and will apply to ad valorem tax years beginning on or after that date.