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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority to impose municipal sales and use taxes; |
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authorizing an increase in the rate of a tax. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 321.101, Tax Code, is amended by |
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amending Subsections (b) and (f) and adding Subsection (f-1) to |
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read as follows: |
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(b) A municipality that is not disqualified may, by a |
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majority vote of the qualified voters of the municipality voting at |
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an election held for that purpose, adopt an additional sales and use |
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tax for the benefit of the municipality in accordance with this |
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chapter. A municipality is disqualified from adopting the |
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additional sales and use tax if the municipality: |
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(1) is included within the boundaries of a rapid |
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transit authority created under Chapter 451, Transportation Code; |
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(2) is included within the boundaries of a regional |
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transportation authority created under Chapter 452, Transportation |
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Code, by a principal municipality having a population of less than |
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1.1 million according to the most recent federal decennial census, |
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unless the municipality has a population of 400,000 or more and is |
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located in more than one county; |
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(3) is wholly or partly located in a county that |
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contains territory within the boundaries of a regional |
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transportation authority created under Chapter 452, Transportation |
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Code, by a principal municipality having a population in excess of |
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1.1 million according to the most recent federal decennial census, |
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unless: |
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(A) the municipality is a contiguous |
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municipality; [or] |
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(B) the municipality is not included within the |
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boundaries of the authority and is located wholly or partly in a |
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county in which fewer than 250 persons are residents of both the |
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county and the authority according to the most recent federal |
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census; [or] |
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(C) the municipality is not and on January 1, |
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1993, was not included within the boundaries of the authority; or |
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(D) the municipality: |
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(i) has a population of more than 70,000; |
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and |
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(ii) is located in two counties, with 90 |
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percent of the municipality's territory located in a county with a |
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population of more than 800,000 and the remaining territory located |
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in a county with a population of more than four million; or |
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(4) imposes a tax authorized by Chapter 453, |
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Transportation Code. |
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(f) Subject to Subsection (f-1), a [A] municipality may not |
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adopt or increase a sales and use tax or an additional sales and use |
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tax under this section if as a result of the adoption or increase of |
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the tax the combined rate of all sales and use taxes imposed by the |
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municipality and other political subdivisions of this state having |
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territory in the municipality would exceed two percent at any |
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location in the municipality. |
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(f-1) A municipality described by Subsection (b)(3)(D) may |
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not adopt or increase a sales and use tax or an additional sales and |
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use tax under this section if as a result of the adoption or |
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increase of the tax the combined rate of all sales and use taxes |
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imposed by the municipality and other political subdivisions of |
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this state having territory in the municipality would exceed three |
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percent at any location in the municipality. |
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SECTION 2. This Act takes effect September 1, 2025. |