H.B. No. 101 mandates that any local taxing unit, excluding school districts, which adopts a tax rate under Section 26.042(c-1) of the Tax Code due to a disaster declaration must seek voter approval for that tax rate increase. This requirement applies specifically to tax rates adopted between May 28, 2025, and December 31, 2025. If the taxing unit wishes to maintain the increased tax rate beyond 30 days, it must hold an election within that timeframe to obtain voter approval. Should the election not occur or the tax rate not be approved, the tax rate will revert to the rate that was in effect prior to the disaster-related increase.

The bill also stipulates 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; otherwise, it will take effect 91 days after the conclusion of the legislative session.