This bill amends the Texas Tax Code to establish new provisions 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 an area consisting of at least three counties declared as disaster areas under the Robert T. Stafford Disaster Relief and Emergency Assistance Act. Additionally, it defines other taxing units that are primarily located in such counties.

The bill also modifies the calculation of the voter-approval tax rate for these large disaster area taxing units, allowing them to calculate their rate in the same manner as special taxing units. For other taxing units, the bill specifies that their voter-approval tax rate will be the lesser of the rate calculated for special taxing units or 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.