By: Bettencourt S.B. No. 1428
A BILL TO BE ENTITLED
AN ACT
relating to the applicability of the exemptions in the event of a
disaster from certain limitations on the ad valorem tax rate of a
taxing unit.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 26.07(b), Tax Code, is amended to read as
follows:
(b) If the governing body of a special taxing unit or a
municipality with a population of 30,000 or more adopts a tax rate
that exceeds the taxing unit's voter-approval tax rate, or the
governing body of a taxing unit other than a special taxing unit or
a municipality with a population of less than 30,000 regardless of
whether it is a special taxing unit adopts a tax rate that exceeds
the greater of the taxing unit's voter-approval tax rate or de
minimis rate, the registered voters of the taxing unit at an
election held for that purpose must determine whether to approve
the adopted tax rate. When increased expenditure of money by a
taxing unit is necessary to respond to a disaster, including a
tornado, hurricane, flood, wildfire, or other calamity, but not
including a drought or epidemic, that has impacted the taxing unit
and the governor has declared any part of the area in which the
taxing unit is located as a disaster area, an election is not
required under this section to approve the tax rate adopted by the
governing body for the year following the year in which the disaster
occurs.
SECTION 2. Section 26.08(a-1), Tax Code, is amended to read
as follows:
(a-1) 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 or epidemic, that has impacted a 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 this section to approve the tax rate adopted by
the governing body 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. If a district adopts
a tax rate under this subsection, the amount by which that rate
exceeds the district's voter-approval tax rate for that tax year
may not be considered when calculating the district's
voter-approval tax rate for the tax year following the year in which
the district adopts the rate.
SECTION 3. The changes in law made by this Act apply to the
ad valorem tax rate of a taxing unit beginning with the 2022 tax
year.
SECTION 4. This Act takes effect January 1, 2022.