Bill > HB1131

This bill modifies Texas tax code provisions related to taxing units in disaster areas, specifically removing their ability to adopt tax rates exceeding the voter-approval tax rate without holding an election. The bill repeals sections of the Education Code and Tax Code that previously allowed certain taxing units (such as school districts) to calculate or adopt higher tax rates in the year following a disaster without voter approval. Key changes include eliminating provisions that permitted taxing units to automatically increase tax rates after a disaster declaration and restricting how and when a disaster declaration can be used to justify tax rate calculations. The bill specifies that these changes will apply to ad valorem (property) taxes for tax years beginning on or after the effective date of January 1, 2026. Essentially, the legislation removes a temporary tax rate flexibility mechanism that was previously available to local governments in the aftermath of a declared disaster, requiring instead that voters approve any tax rate increases beyond the standard voter-approval rate.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB1131