SB1449 - Relating to the effect of a disaster and associated costs to remove debris or wreckage on the calculation of certain tax rates and the procedure for adoption of a tax rate by a taxing unit.

      By: Bettencourt  S.B. No. 1449          (In the Senate - Filed February 19, 2025; March 6, 2025,   read first time and referred to Committee on Local Government;   April 22, 2025, reported adversely, with favorable Committee   Substitute by the following vote:  Yeas 5, Nays 2; April 22, 2025,   sent to printer.) Click here to see the committee vote     COMMITTEE SUBSTITUTE FOR S.B. No. 1449 By:  Bettencourt     A BILL TO BE ENTITLED   AN ACT     relating to the effect of a disaster and associated costs to remove   debris or wreckage on the calculation of certain tax rates and the   procedure for adoption of a tax rate by a taxing unit.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 26.042, Tax Code, is amended by amending   Subsections (a), (f), and (g) and adding Subsections (a-1), (a-2),   and (a-3) to read as follows:          (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) or (a-3), as applicable, [ for a   special taxing unit ] 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 debris cost" means a taxing unit's share   of the cost to remove debris or wreckage in the taxing unit as   determined by an estimate made under 42 U.S.C. Section 5173.                 (2)     "Disaster debris rate" means a rate expressed in   dollars per $100 of taxable value and calculated according to the   following formula:           DISASTER DEBRIS RATE = (DISASTER DEBRIS COST) / (CURRENT   TOTAL VALUE - NEW PROPERTY VALUE)           (a-2)     This subsection applies only to a taxing unit that is   wholly or partly located in an area declared a disaster area by the   president of the United States and for which an estimate has been   made under 42 U.S.C. Section 5173 relating to the cost to remove   debris or wreckage in the taxing unit.   For a taxing unit to which   this subsection applies, 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 DEBRIS RATE)           (a-3)     For a taxing unit to which Subsection (a) applies but   Subsection (a-2) does not apply, the governing body of the taxing   unit may direct the designated officer or employee to calculate the   voter-approval tax rate in the manner provided for a special taxing   unit.          (f)  If a taxing unit adopts a tax rate under Subsection [ (d)   or ] (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 [ (d)   or ] (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)[ , (d), ] 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.          SECTION 2.  Section 26.042(d), Tax Code, is repealed.          SECTION 3.  The change in law made by this Act applies only   to an ad valorem tax year that begins on or after the effective date   of this Act.          SECTION 4.  This Act takes effect January 1, 2026.     * * * * *