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.

Added new definitions for 'disaster relief cost', 'disaster relief rate', and 'essential assistance' to clarify what expenses qualify for special tax treatment.

Requires taxing units to calculate voter-approval tax rates using a specific formula that factors in disaster relief costs and existing debt rates.

Removed previous requirements that mandated tax rate reductions for school districts in certain disaster situations.

Modified eligibility rules to allow taxing units to use disaster declarations as the basis for special tax rates, but limits this to one tax year per disaster declaration.

Established that these new provisions apply to ad valorem tax years beginning on or after the effective date of the act, with the act taking effect January 1, 2026.

Requires taxing units to submit disaster cost estimates to the Texas Division of Emergency Management as soon as practicable after completion.