H.B. No. 101 is a legislative proposal that mandates voter approval for certain local tax rate increases that are adopted in response to a disaster declaration. Specifically, the bill applies to any taxing unit, excluding school districts, that utilizes the 8% voter-approved rate calculation under Section 26.042(c-1) of the Tax Code during the period from May 28, 2025, to December 31, 2025. The bill stipulates that these taxing units cannot impose the increased tax rate for more than 30 days unless it is approved by voters in an election held within that timeframe. If the election does not occur or the tax rate is not approved, the tax rate will revert to the rate that was in effect prior to the disaster-related increase.

Additionally, the bill requires that any election held for this purpose must comply with the regulations governing tax rate approval elections as outlined in Chapter 26 of the Tax Code. The act is set to take effect immediately if it secures a two-thirds majority vote from all elected members in both houses of the legislature; otherwise, it will take effect on the 91st day following the conclusion of the legislative session.