TexasHB 3089th Legislature Regular SessionHouseWALLET

Relating to the effect of a disaster and associated costs on the calculation of certain tax rates and the procedure for adoption of a tax rate by a taxing unit.

Sponsored By: Paul Bettencourt (Republican), Morgan Meyer, Candy Noble, Tom Oliverson, Carl H. Tepper, Ellen Troxclair

Signed by Governor

Disaster Preparedness & ReliefTaxation--Property-Assessment & CollectionTaxation--Property-Tax Rate

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 0 costs, 1 mixed.

Taxpayers keep a tax election safeguard

Beginning with property-tax years starting January 1, 2026, the law removes one route for adopting higher taxes without an election. It repeals the former disaster rule allowing a taxing unit to exceed its voter-approval rate without an election. This preserves an election safeguard for affected taxpayers. The repeal does not itself set a tax rate or change a household’s tax bill.

Disaster tax increases face recovery limits

Beginning with property-tax years starting January 1, 2026, eligible Texas local governments can use a disaster-related tax-rate calculation. School districts and special taxing units are excluded. Part of the taxing unit must have a governor- or president-declared disaster during the current tax year. At least one property owner there must receive a Section 11.35 disaster property-tax exemption. The calculation changes the tax-rate threshold for voter approval, not the actual rate, and can allow higher household tax bills. The threshold is the lower of the rate calculated for a special taxing unit or this sum: 103.5% of the no-new-revenue operating rate, plus debt, unused-increment, and disaster-relief rates. The disaster-relief rate equals the unit’s disaster costs divided by current taxable value minus new property value, expressed per $100. Covered costs include the unit’s share of debris removal and emergency help, such as shelter, rescue, medical care, and emergency-worker overtime. Governments must use federal cost-estimation methods when practical and available, and promptly send locally prepared estimates to the Texas Division of Emergency Management. The method ends at the earlier of tax-base recovery above its January 1 disaster-year value or the third tax year after the disaster. A rate adopted under the covered disaster rules cannot carry its excess over that year’s voter-approval rate into next year’s calculation. Governments using the covered disaster options must identify the disaster declaration supporting their action. They cannot reuse that declaration in a later year after relying on a different declaration.

Sponsors & Cosponsors

Sponsors

  • Paul Bettencourt

    Republican • Senate

  • Morgan Meyer

    House

  • Candy Noble

    House

  • Tom Oliverson

    House

  • Carl H. Tepper

    House

  • Ellen Troxclair

    House

Cosponsors

  • Daniel Alders

    House

  • Greg Bonnen

    House

  • David Cook

    House

  • Creighton

    Affiliation unavailable

  • Mano DeAyala

    House

  • Caroline Harris Davila

    House

  • Carrie Isaac

    House

  • Helen Kerwin

    House

  • Joanne Shofner

    House

  • Steve Toth

    House

  • Cody Vasut

    House

Roll Call Votes

All Roll Calls

Yes: 282 • No: 145

Senate vote • 5/15/2025

Record vote

Yes: 22 • No: 9

Senate vote • 5/15/2025

Record vote

Yes: 25 • No: 6

Senate vote • 5/15/2025

Record vote

Yes: 22 • No: 9

Senate vote • 5/15/2025

Record vote

Yes: 22 • No: 9

House vote • 5/8/2025

Record vote

Yes: 95 • No: 51

House vote • 5/7/2025

Record vote

Yes: 83 • No: 55

Senate vote • Unknown

Committee vote: Local Government

Yes: 5 • No: 1

House vote • Unknown

Committee vote: Ways & Means

Yes: 8 • No: 5

Bill Text

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