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.

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.