Tax Code § 26.042

Sec. 26.042. CALCULATION AND ADOPTION OF CERTAIN TAX RATES IN DISASTER AREA. (a) Notwithstanding Sections 26.04 and 26.041, the governing body of a taxing unit other than a school district or a special taxing unit may direct the designated officer or employee to calculate the voter-approval tax rate of the taxing unit in the manner provided by Subsection (a-2) if any part of the taxing unit is located in an area declared a disaster area during the current tax year by the governor or by the president of the United States and at least one person is granted an exemption under Section 11.35 for property located in the taxing unit. The designated officer or employee shall continue calculating the voter-approval tax rate in the manner provided by this subsection until the earlier of: (1) the first tax year in which the total taxable value of property taxable by the taxing unit as shown on the appraisal roll for the taxing unit submitted by the assessor for the taxing unit to the governing body exceeds the total taxable value of property taxable by the taxing unit on January 1 of the tax year in which the disaster occurred; or (2) the third tax year after the tax year in which the disaster occurred. (a-1) In this section: (1) "Disaster relief cost" means the total amount of a taxing unit's share of the cost associated with the following services provided during a disaster declared by the president of the United States or the governor during the current tax year: (A) the removal of debris or wreckage in the taxing unit, as determined by an estimate: (i) if the disaster is declared by the president of the United States, made under 42 U.S.C. Section 5173; or (ii) if the disaster is declared by the governor but not by the president of the United States, made by the taxing unit using, to the extent practicable, the methods used to make a federal estimate under 42 U.S.C. Section 5173; and (B) essential assistance as determined by: (i) if the disaster was declared by the president of the United States, a federal estimate; or (ii) if the disaster was declared by the governor but not by the president of the United States, an estimate made by the taxing unit using, to the extent practicable, the methods used to make a federal estimate described by Subparagraph (i). (2) "Disaster relief rate" means a rate expressed in dollars per $100 of taxable value and calculated according to the following formula: DISASTER RELIEF RATE = (DISASTER RELIEF COST) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE) (3) "Essential assistance" means the following forms of essential assistance described by 42 U.S.C. Section 5170b: (A) emergency sheltering of individuals; (B) overtime and hazardous duty compensation provided to police, fire, and emergency medical service personnel; (C) water testing and treatment; (D) provision of essential supplies; (E) search and rescue efforts; (F) evacuation services; (G) medical care and transport; and (H) security measures and services. (a-2) The voter-approval tax rate the governing body of the taxing unit may direct the designated officer or employee to calculate under Subsection (a) is equal to the lesser of: (1) the voter-approval tax rate calculated in the manner provided for a special taxing unit; or (2) the voter-approval tax rate calculated according to the following formula: VOTER-APPROVAL TAX RATE = (NO-NEW-REVENUE MAINTENANCE AND OPERATIONS RATE X 1.035) + (CURRENT DEBT RATE + UNUSED INCREMENT RATE + DISASTER RELIEF RATE) (a-3) A taxing unit to which Subsection (a) applies that makes an estimate described by Subsection (a-1)(1)(A)(ii) or (B)(ii) shall, as soon as practicable after completing the estimate, forward the estimate to the Texas Division of Emergency Management. (b) In the first tax year following the last tax year for which the designated officer or employee calculates a taxing unit's voter-approval tax rate in the manner provided by Subsection (a), the taxing unit's voter-approval tax rate is reduced by the taxing unit's emergency revenue rate. For purposes of this subsection, a taxing unit's emergency revenue rate means a rate expressed in dollars per $100 of taxable value calculated according to the following formula: EMERGENCY REVENUE RATE = [(LAST YEAR'S ADOPTED TAX RATE - ADJUSTED VOTER-APPROVAL TAX RATE) x LAST YEAR'S TOTAL VALUE] / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE) (c) For purposes of Subsection (b), "adjusted voter-approval tax rate" means the voter-approval tax rate a taxing unit would have calculated in the last year for which Subsection (a) applied to the taxing unit if in each tax year Subsection (a) applied to the taxing unit the taxing unit adopted a tax rate equal to the greater of: (1) the tax rate actually adopted by the taxing unit for that tax year, if that tax rate was approved by the voters at an election held under Section 26.07; or (2) the taxing unit's voter-approval tax rate for that tax year, calculated in the manner provided for a taxing unit other than a special taxing unit. (d) Repealed by Acts 2025, 89th Leg., R.S., Ch. 209 (H.B. 30), Sec. 2, eff. January 1, 2026. (e) When increased expenditure of money by a school district is necessary to respond to a disaster, including a tornado, hurricane, flood, wildfire, or other calamity, but not including a drought, epidemic, or pandemic, that has impacted the school district and the governor has requested federal disaster assistance for the area in which the school district is located, an election is not required under Section 26.08 to approve the tax rate adopted by the governing body of the school district for the year following the year in which the disaster occurs. A tax rate adopted under this subsection applies only in the year for which the rate is adopted. (e-1) The governing body of a school district may not adopt a tax rate under Subsection (e) for a tax year in which: (1) the governing body previously adopted a tax rate that exceeded the district's voter-approval tax rate; (2) an election was held under Section 26.08 for the purpose of determining whether to approve the district's adopted tax rate; and (3) the proposition to approve the district's adopted tax rate was not approved by the voters of the district at the election. (f) If a taxing unit adopts a tax rate under Subsection (e), the amount by which that rate exceeds the taxing unit's voter-approval tax rate for that tax year may not be considered when calculating the taxing unit's voter-approval tax rate for the tax year following the year in which the taxing unit adopts the rate. (g) A taxing unit that in a tax year elects to calculate the taxing unit's voter-approval tax rate under Subsection (a) or adopt a tax rate that exceeds the taxing unit's voter-approval tax rate for that tax year without holding an election under Subsection (e) must specify the disaster declaration that provides the basis for authorizing the taxing unit to calculate or adopt a tax rate under the applicable subsection. A taxing unit that in a tax year specifies a disaster declaration as providing the basis for authorizing the taxing unit to calculate or adopt a tax rate under Subsection (a) or (e) may not in a subsequent tax year specify the same disaster declaration as providing the basis for authorizing the taxing unit to calculate or adopt a tax rate under one of those subsections if in an intervening tax year the taxing unit specifies a different disaster declaration as the basis for authorizing the taxing unit to calculate or adopt a tax rate under one of those subsections. Added by Acts 2021, 87th Leg., R.S., Ch. 884 (S.B. 1438), Sec. 6, eff. June 16, 2021. Amended by: Acts 2025, 89th Leg., R.S., Ch. 153 (S.B. 1502), Sec. 1, eff. January 1, 2026. Acts 2025, 89th Leg., R.S., Ch. 209 (H.B. 30), Sec. 1, eff. January 1, 2026. Acts 2025, 89th Leg., R.S., Ch. 209 (H.B. 30), Sec. 2, eff. January 1, 2026.