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A BILL TO BE ENTITLED
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AN ACT
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relating to the imposition of sales and use tax after a municipality |
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annexes an area in an emergency services district. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter E, Chapter 775, Health and Safety |
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Code, is amended by adding Section 775.0755 to read as follows: |
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Sec. 775.0755. SALES AND USE TAX AFTER CERTAIN ANNEXATIONS. |
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(a) This section applies when: |
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(1) a municipality annexes for full purposes part of a |
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district that imposes a sales and use tax; |
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(2) the annexed area is not removed from the district; |
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and |
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(3) the municipality intends to be the sole provider of |
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emergency services to the area. |
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(b) Section 321.102(f), Tax Code, does not apply to a |
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reduction of the tax rate of the district required by Section |
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321.102(e) of that code. |
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(c) If an election is required for the annexation under |
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Chapter 43, Local Government Code, the ballot must include the |
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following language: "If the annexation is approved, a portion of |
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the sales and use tax previously collected by _____________ (insert |
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name of the district) will instead be collected by _____________ |
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(insert name of the municipality)." |
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SECTION 2. This Act takes effect September 1, 2023. |