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Signed Into Law
Signed May 28, 2025Effective 2026-01-01
HB30

Regular Session

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.

Government Affairs & Regulatory Compliance Analysis

HB30: Government Affairs Overview

HB30 repeals the automatic authority for taxing units to raise property tax rates without an election following a disaster, replacing it with a strict, formula-driven "Disaster Relief Rate" effective January 1, 2026. This legislation shifts the burden to commercial property owners to audit municipal "disaster cost" claims and requires government vendors to align invoicing strictly with federal definitions to ensure cost recoverability.

Rep. Ellen Troxclair·House Bill·Regular Session

Moderate
Medium Cost
Effective:2026-01-01
Enforcing Agencies

County Tax Assessor-Collectors • Local Taxing Unit Governing Bodies • Texas Division of Emergency Management (TDEM)

Business Impact

Who HB30 Affects

This legislation has regulatory implications for the following Texas businesses and organizations:

Regulatory Priority: moderate

Notable regulatory updates (effective 2026-01-01). Consider how these changes may affect your operations.

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Real Estate

Affected business types:

  • Property developers
  • Commercial landlords
  • Property managers
  • Real estate investors
View all real estate legislation

Key Operational Considerations

  • 1Data Provision Clauses: Insert clauses defining "practicable" timelines for providing detailed cost breakdowns to municipal clients, as they will need this data urgently to set tax rates.
  • 2Tax Departments: Train internal tax teams or external consultants on the new "Disaster Relief Rate" formula: `(Disaster Relief Cost) / (Current Total Value - New Property Value)`.
  • 3Accounts Receivable: Train billing staff to segregate disaster-related invoices from general services immediately upon deployment to a disaster zone.

Estimated Cost Impact

mediumModerate costs expected for implementation.

Enforcing Agencies

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HB30
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 ta...
Moderate Urgency
Heavily Contested
House Vote95 - 51
YEA
NAY
65% in favor146 voting
Senate Vote22 - 9
YEA
NAY
71% in favor31 voting
60
Total Opposition Votes
Cost Impact
Medium
Effective
2026-01-01
Enforcing Agencies
County Tax Assessor-CollectorsLocal Taxing Unit Governing BodiesTDEM
Primary Author: Rep. Ellen Troxclair
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: January 1, 2026 (Applies to tax years beginning on or after this date).
  • Compliance Deadline: January 1, 2026. While the tax rate is set later in the year, contracts and data collection systems must be in place by the start of the tax year to capture qualifying costs.
  • Agency Rulemaking: The Texas Division of Emergency Management (TDEM) will receive cost estimates from taxing units. While no specific rulemaking deadline is set, TDEM must establish intake procedures for these estimates prior to the 2026 tax cycle.

Immediate Action Plan

  • Immediate: Review all active government contracts extending into 2026 to ensure service descriptions align with federal "essential assistance" definitions.
  • Q4 2025: Update internal property tax projection models to include the "Disaster Relief Rate" variable for 2026 budgeting.
  • Post-Disaster Protocol: Establish a standing order for your legal team to monitor Section 11.35 exemption filings in your jurisdiction; a single filing triggers the taxing unit's ability to use the new rate formula.
  • Vendor Coordination: If you are a vendor, meet with municipal finance directors to agree on an invoicing format that supports their new reporting requirements.

Operational Changes Required

Contracts

Government Vendors & Contractors:

  • Update Master Service Agreements (MSAs): Amend Scope of Work definitions to mirror 42 U.S.C. Section 5170b. Replace generic terms like "site support" with specific federal categories such as "debris removal," "search and rescue," or "emergency medical care."
  • Data Provision Clauses: Insert clauses defining "practicable" timelines for providing detailed cost breakdowns to municipal clients, as they will need this data urgently to set tax rates.

Hiring/Training

  • Tax Departments: Train internal tax teams or external consultants on the new "Disaster Relief Rate" formula: `(Disaster Relief Cost) / (Current Total Value - New Property Value)`.
  • Accounts Receivable: Train billing staff to segregate disaster-related invoices from general services immediately upon deployment to a disaster zone.

Reporting & Record-Keeping

  • Public Information Act (PIA) Requests: In disaster years where the Governor (but not the President) declares a disaster, corporate tax teams must systematically file PIA requests for the cost estimates the taxing unit submits to TDEM.
  • Evidence of Essential Assistance: Taxing units must substantiate "essential assistance." Vendors must maintain granular logs of overtime, hazardous duty pay, and equipment usage to support the client's tax rate calculations.

Fees & Costs

  • Tax Liability: Commercial property owners should anticipate a specific "Disaster Relief" line item or component in their tax rate. This rate is uncapped but limited by the actual costs incurred.
  • Audit Costs: Budget for increased legal or consulting fees to challenge the mathematical basis of the tax rate if the taxing unit's cost estimates appear inflated.

Strategic Ambiguities & Considerations

  • "As Soon As Practicable": The law requires taxing units to submit estimates to TDEM "as soon as practicable," a vague standard that may lead to delayed filings, hindering a taxpayer's ability to audit the rate before tax bills are due.
  • Lack of Audit Authority: The bill mandates submission to TDEM but does not explicitly grant TDEM the authority to *reject* an inflated estimate. This leaves the validity of the "Disaster Relief Cost" as a matter for civil litigation rather than regulatory enforcement.

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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

02

Legislative Timeline

This bill's path through the Texas Legislature

Filed
Mar 14, 2025
Passed House
May 8, 2025
Passed Senate
May 15, 2025
Signed
May 28, 2025
Effective
Jan 1, 2026
TopicsDisaster Preparedness & ReliefTaxationTaxation--property-assessment & CollectionTaxation--property-tax Rate
03

House Authors

Rep. Ellen TroxclairRepublican · Primary Author
Joint Authors
Coauthors (10)

Senate Sponsors

Sen. Paul BettencourtRepublican · Primary Sponsor
Cosponsors (1)

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

Explore more bills from this author and on related topics

More from Rep. Ellen Troxclair

View all bills by Rep. Ellen Troxclair

Related by Topic

View more Disaster Preparedness & Relief legislation
Quick Reference

Frequently Asked Questions

Common questions about HB30

Q

What does Texas HB30 do?

HB30 repeals the automatic authority for taxing units to raise property tax rates without an election following a disaster, replacing it with a strict, formula-driven "Disaster Relief Rate" effective January 1, 2026. This legislation shifts the burden to commercial property owners to audit municipal "disaster cost" claims and requires government vendors to align invoicing strictly with federal definitions to ensure cost recoverability.

Q

Who authored HB30?

HB30 was authored by Texas Representative Ellen Troxclair during the Regular Session.

Q

When was HB30 signed into law?

HB30 was signed into law by Governor Greg Abbott on May 28, 2025.

Q

Which agencies enforce HB30?

HB30 is enforced by County Tax Assessor-Collectors, Local Taxing Unit Governing Bodies and Texas Division of Emergency Management (TDEM).

Q

How significant are the changes in HB30?

The regulatory priority for HB30 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of HB30?

The cost impact of HB30 is estimated as "medium". This may vary based on industry and implementation requirements.

Q

What topics does HB30 address?

HB30 addresses topics including disaster preparedness & relief, taxation, taxation--property-assessment & collection and taxation--property-tax rate.

Q

What are the key dates for HB30?

Key dates for HB30: Effective date is 2026-01-01. Consult with legal counsel regarding applicability.

Q

Which Texas businesses are affected by HB30?

HB30 primarily affects property owners and real estate professionals. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.

Need Strategic Guidance on This Legislation?

JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.

Legislative data provided by LegiScanLast updated: January 11, 2026