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 located in such counties. The bill also modifies the calculation of the voter-approval tax rate, specifying that for large disaster area taxing units, the rate will be calculated similarly to that of special taxing units.

Additionally, the bill clarifies the calculation for taxing units that are not classified as large disaster area taxing units, establishing that their voter-approval tax rate will be the lesser of two specified calculations. The changes will take effect on January 1, 2026, and will apply to ad valorem tax years beginning on or after that date. The amendments aim to provide more favorable tax rate calculations for taxing units affected by significant disasters, thereby potentially easing the financial burden on these areas.