By Madden H.B. No. 3011
74R6335 JBN-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the rate of state and local sales and use taxes.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subtitle C, Title 3, Tax Code, is amended by
1-5 adding Chapter 325 to read as follows:
1-6 CHAPTER 325. MAXIMUM LOCAL SALES AND USE TAX RATES
1-7 Sec. 325.001. DEFINITIONS. In this chapter:
1-8 (1) "Combined local sales and use tax rate" means the
1-9 sum of the rates of all local sales and use taxes applicable to the
1-10 sale of a taxable item.
1-11 (2) "Local sales and use tax" means a tax administered
1-12 and computed according to Chapters 321-324 and to which those
1-13 chapters apply, including a tax imposed under Chapter 285, 775, or
1-14 776, Health and Safety Code; the Crime Control and Prevention
1-15 District Act (Article 2370c-4, Vernon's Texas Civil Statutes); or
1-16 the Development Corporation Act of 1979 (Article 5190.6, Vernon's
1-17 Texas Civil Statutes). The term does not include a state tax.
1-18 (3) "Local sales and use tax rate" means the rate at
1-19 which a political subdivision is authorized by the voters of the
1-20 subdivision to impose a local sales and use tax even if the rate
1-21 imposed is lower than the rate authorized by the voters.
1-22 (4) "Taxable item" has the meaning assigned by Section
1-23 151.010.
1-24 Sec. 325.002. MAXIMUM LOCAL SALES AND USE TAX RATE. (a)
2-1 The combined local sales and use tax rate may not exceed two and
2-2 one-fourth percent.
2-3 (b) This section prevails over any other statute to the
2-4 extent of a conflict with this section. The rule of statutory
2-5 construction that a specific statute prevails over a general
2-6 statute does not apply to determining the application of this
2-7 section unless the specific statute expressly states that this
2-8 section does not apply.
2-9 Sec. 325.003. ELECTION TO INCREASE TAX RATE HIGHER THAN
2-10 MAXIMUM RATE. (a) The governing body of a political subdivision
2-11 may not order or hold an election to increase the rate of a local
2-12 sales and use tax or to annex territory subject to a local sales
2-13 and use tax of another political subdivision if the result of the
2-14 election, on approval of the voters of the proposition, would be a
2-15 combined local sales and use tax rate at any place in that
2-16 political subdivision that exceeds the rate provided by Section
2-17 325.002(a).
2-18 (b) This section does not prevent, subject to Section
2-19 325.004, the order or holding of simultaneous elections in more
2-20 than one political subdivision if the elections may result in a
2-21 combined local sales and use tax rate within the rate prescribed by
2-22 Section 325.002(a).
2-23 Sec. 325.004. SIMULTANEOUS ELECTIONS RESULTING IN TAXES
2-24 EXCEEDING MAXIMUM RATE. If in an election the voters of a
2-25 political subdivision approve the imposition or rate of a local
2-26 sales and use tax and the voters of the same or one or more other
2-27 political subdivisions in an election held on the same day approve
3-1 the imposition or rate of a local sales and use tax and the result
3-2 of the elections is the combined local sales and use tax rate at
3-3 any place in any of those political subdivisions exceeds the rate
3-4 provided by Section 325.002(a), each election, including an
3-5 election to repeal or reduce the rate of a local sales and use tax,
3-6 is void.
3-7 Sec. 325.005. DE MINIMIS EFFECT. (a) This chapter does not
3-8 prohibit a combined local sales and use tax rate in excess of the
3-9 rate provided by Section 325.002(a) in a territory that:
3-10 (1) is located in a municipality in more than one
3-11 county;
3-12 (2) has a population of less than 250; and
3-13 (3) is located in an authority created under Chapter
3-14 683, Acts of the 66th Legislature, Regular Session, 1979 (Article
3-15 1118y, Vernon's Texas Civil Statutes), composed of a subregion
3-16 having a principal city with a population of more than 800,000
3-17 determined in the manner provided by that Act.
3-18 (b) This section does not permit the combined local sales
3-19 and use tax rate to exceed the rate provided by Section 325.002(a)
3-20 by more than one-fourth of one percent.
3-21 SECTION 2. Section 151.051(b), Tax Code, is amended to read
3-22 as follows:
3-23 (b) The sales tax rate is six <6-1/4> percent of the sales
3-24 price of the taxable item sold.
3-25 SECTION 3. Sections 321.101(a) and (b), Tax Code, are
3-26 amended to read as follows:
3-27 (a) A municipality may adopt or repeal a sales and use tax
4-1 or increase or reduce the rate of a sales and use tax authorized by
4-2 this chapter, other than the additional municipal sales and use
4-3 tax, at an election in which a majority of the qualified voters of
4-4 the municipality approve the adoption or repeal of the tax.
4-5 (b) A municipality <that is not disqualified> may, by a
4-6 majority vote of the qualified voters of the municipality voting at
4-7 an election held for that purpose, adopt an additional sales and
4-8 use tax for the benefit of the municipality in accordance with this
4-9 chapter. A municipality is disqualified from adopting the
4-10 additional sales and use tax at a rate higher than one-fourth of
4-11 one percent if the municipality:
4-12 (1) is included within the boundaries of a rapid
4-13 transit authority created under Chapter 141, Acts of the 63rd
4-14 Legislature, Regular Session, 1973 (Article 1118x, Vernon's Texas
4-15 Civil Statutes);
4-16 (2) is included within the boundaries of a regional
4-17 transportation authority created under Chapter 683, Acts of the
4-18 66th Legislature, Regular Session, 1979 (Article 1118y, Vernon's
4-19 Texas Civil Statutes), by a principal city having a population of
4-20 less than 800,000, unless the city has a population of 400,000 or
4-21 more and is located in more than one county;
4-22 (3) is wholly or partly located in a county that
4-23 contains territory within the boundaries of a regional
4-24 transportation authority created under Chapter 683, Acts of the
4-25 66th Legislature, Regular Session, 1979 (Article 1118y, Vernon's
4-26 Texas Civil Statutes), by a principal city having a population in
4-27 excess of 800,000, unless:
5-1 (A) the city is a contiguous city; or
5-2 (B) the municipality is not included within the
5-3 boundaries of the authority and is located wholly or partly in a
5-4 county in which fewer than 250 persons are residents of both the
5-5 county and the authority according to the most recent federal
5-6 census; or
5-7 (C) the municipality is not and on January 1,
5-8 1993, was not included within the boundaries of the authority; or
5-9 (4) imposes a tax authorized by Article 1118z, Revised
5-10 Statutes.
5-11 SECTION 4. Section 321.1025(c), Tax Code, is amended to read
5-12 as follows:
5-13 (c) If the annexation is approved by the voters, the
5-14 election is to be treated for all purposes as an election to reduce
5-15 the rate of the additional sales and use tax to the highest rate
5-16 allowable under Section 321.103(b) that will not result in
5-17 exceeding the maximum combined local sales and use tax rates
5-18 prescribed by Chapter 325 or, if the rate cannot be reduced to a
5-19 rate not in violation of Chapter 325, to abolish the additional
5-20 sales and use tax in the municipality, and the tax is so reduced or
5-21 repealed in the manner provided by this chapter.
5-22 SECTION 5. Section 321.103, Tax Code, is amended to read as
5-23 follows:
5-24 Sec. 321.103. Sales Tax. (a) In a municipality that has
5-25 adopted the tax authorized by Section 321.101(a), there is imposed
5-26 a tax on the receipts from the sale at retail of taxable items
5-27 within the municipality:
6-1 (1) at the rate of one, one and one-eighth, or one and
6-2 one-fourth of one percent, as approved by the voters; and
6-3 (2) at the same rate on the receipts from the sale at
6-4 retail within the municipality of gas and electricity for
6-5 residential use.
6-6 (b) In a municipality that has adopted the additional
6-7 municipal sales and use tax, the tax is imposed at the rate
6-8 approved by the voters. The rate, when the tax is adopted, must be
6-9 equal to either one-eighth, one-fourth, three-eighths, <or>
6-10 one-half, five-eighths, or three-fourths of one percent. The rate
6-11 may be reduced in one or more increments of one-eighth of one
6-12 percent to a minimum of one-eighth of one percent or increased in
6-13 one or more increments of one-eighth of one percent to a maximum of
6-14 three-fourths <one-half> of one percent, or the tax may be
6-15 abolished. The rate that the municipality adopts is on the
6-16 receipts from the sale at retail of all taxable items within the
6-17 municipality and at the same rate on the receipts from the sale at
6-18 retail within the municipality of gas and electricity for
6-19 residential use unless the residential use of gas and electricity
6-20 is exempted from the tax imposed under Section 321.101(a), in which
6-21 case the residential use of gas and electricity is exempted under
6-22 this subsection also.
6-23 SECTION 6. Section 321.401(e), Tax Code, is amended to read
6-24 as follows:
6-25 (e) The governing body of any municipality that has adopted
6-26 the sales and use tax under Section 321.101(a) or the additional
6-27 sales and use tax shall, on petition of qualified voters of the
7-1 municipality equal in number to at least five percent of the number
7-2 of voters registered in the municipality, provide by ordinance for
7-3 the calling and holding of an election on the question of
7-4 increasing, reducing, or repealing the sales and use tax or the
7-5 additional sales and use tax.
7-6 SECTION 7. Section 321.403, Tax Code, is amended to read as
7-7 follows:
7-8 Sec. 321.403. Time of Election. (a) An election under this
7-9 chapter to adopt or repeal or change the rate of the tax authorized
7-10 under Section 321.101(a) must be held on the first succeeding
7-11 uniform election date for which sufficient time elapses for the
7-12 holding of an election.
7-13 (b) An election on the approval or repeal or change in the
7-14 rate of the additional sales and use tax must be held on the next
7-15 succeeding uniform election date not less than 30 days after the
7-16 passage of the ordinance calling the election.
7-17 SECTION 8. Sections 321.404(a) and (c), Tax Code, are
7-18 amended to read as follows:
7-19 (a) In an election to adopt, or increase or reduce the rate
7-20 of, the tax, the ballot shall be printed to provide for voting for
7-21 or against the applicable proposition: "A <one percent> sales and
7-22 use tax at the rate of _____ percent is adopted within the city"
7-23 (one, one and one-eighth, or one and one-fourth to be inserted as
7-24 appropriate) or "The adoption of an additional sales and use tax
7-25 within the city at the rate of ________ of one percent to be used
7-26 to reduce the property tax rate" (one-eighth, one-fourth,
7-27 three-eighths, <or> one-half, five-eighths, or three-fourths to be
8-1 inserted as appropriate).
8-2 (c) In a municipality that does not impose a property tax,
8-3 the ballot at an election to adopt the additional municipal sales
8-4 and use tax shall be printed to provide for voting for or against
8-5 the following proposition: "The adoption of an additional sales
8-6 and use tax within the city at the rate of ________ of one percent"
8-7 (one-eighth, one-fourth, three-eighths, <or> one-half,
8-8 five-eighths, or three-fourths to be inserted as appropriate).
8-9 SECTION 9. Sections 321.405(a) and (c), Tax Code, are
8-10 amended to read as follows:
8-11 (a) Within 10 days after an election in which the voters
8-12 approve of the adoption or abolition, or an increase or reduction
8-13 in the rate, of a tax authorized by this chapter, the governing
8-14 body of the municipality shall by resolution or ordinance entered
8-15 in its minutes of proceedings, declare the results of the election.
8-16 A resolution or ordinance under this section must include
8-17 statements showing:
8-18 (1) the date of the election;
8-19 (2) the proposition on which the vote was held;
8-20 (3) the total number of votes cast for and against the
8-21 proposition; <and>
8-22 (4) the number of votes by which the proposition was
8-23 approved; and
8-24 (5) the rate of the tax.
8-25 (c) Not later than the 30th day after the date the
8-26 comptroller receives a certified copy of an ordinance or resolution
8-27 showing the adoption or a change in the rate of the additional
9-1 municipal sales and use tax, the comptroller shall notify the
9-2 municipal secretary that he is prepared for the administration of
9-3 the tax.
9-4 SECTION 10. Section 323.101, Tax Code, is amended to read as
9-5 follows:
9-6 Sec. 323.101. Tax Authorized. (a) A qualified county may
9-7 adopt or repeal the county sales and use tax authorized by this
9-8 chapter at an election in which a majority of the qualified voters
9-9 of the county approve the adoption or repeal of the tax, as
9-10 applicable.
9-11 <(b) A county is qualified to adopt the tax only if no part
9-12 of the county is located in a rapid transit authority created under
9-13 Chapter 141, Acts of the 63rd Legislature, Regular Session, 1973
9-14 (Article 1118x, Vernon's Texas Civil Statutes), or a regional
9-15 transportation authority created under Chapter 683, Acts of the
9-16 66th Legislature, Regular Session, 1979 (Article 1118y, Vernon's
9-17 Texas Civil Statutes).>
9-18 <(c) An authority created under Chapter 141, Acts of the
9-19 63rd Legislature, Regular Session, 1973 (Article 1118x, Vernon's
9-20 Texas Civil Statutes), or Chapter 683, Acts of the 66th
9-21 Legislature, Regular Session, 1979 (Article 1118y, Vernon's Texas
9-22 Civil Statutes), is prohibited from imposing the tax provided for
9-23 in those Acts in a county in which the county sales and use tax
9-24 provided for in this section is in effect or is scheduled to take
9-25 effect. For the purposes of this section, an authority is not
9-26 considered to be located in any county in which fewer than 250
9-27 persons are both residents of the authority and the county.>
10-1 <(d) A county may not adopt a sales and use tax under this
10-2 section if as a result of the adoption of the tax the combined rate
10-3 of all sales and use taxes imposed by the county and other
10-4 political subdivisions of this state having territory in the county
10-5 would exceed two percent at any location in the county.>
10-6 <(e) If the voters of a county approve the adoption of a
10-7 sales and use tax at an election held on the same election date on
10-8 which a municipality having territory in the county adopts a sales
10-9 and use tax or an additional sales and use tax and as a result the
10-10 combined rate of all sales and use taxes imposed by the county and
10-11 other political subdivisions of this state having territory in the
10-12 county would exceed two percent at any location in the county, the
10-13 election to adopt a county sales and use tax has no effect.>
10-14 (b) <(f)> The provisions of this chapter govern the
10-15 application, collection, and administration of a sales and use tax
10-16 imposed under Chapter 285, 775, or 776, Health and Safety Code, to
10-17 the extent not inconsistent with the provisions of those chapters.
10-18 <Provided, however, that Subsection (b) shall not apply to a tax
10-19 authorized under those chapters.>
10-20 SECTION 11. Section 323.103, Tax Code, is amended to read as
10-21 follows:
10-22 Sec. 323.103. Sales Tax. In a county that has adopted the
10-23 tax authorized by this chapter, there is imposed a tax on the
10-24 receipts from the sale at retail of taxable items within the county
10-25 at the rate of:
10-26 (1) one-half, five-eighths, or three-fourths of one
10-27 percent; <,> or
11-1 (2) in a county that includes no territory within the
11-2 limits of a municipality, one, one and one-eighth, or one and
11-3 one-fourth of one percent.
11-4 SECTION 12. Sections 323.105(a) and (b), Tax Code, are
11-5 amended to read as follows:
11-6 (a) Subject to an election held in accordance with the Crime
11-7 Control and Prevention District Act, a county in which a crime
11-8 control and prevention district is established shall adopt a sales
11-9 and use tax in the area of the district for the purpose of
11-10 financing the operation of the crime control and prevention
11-11 district. The revenue from the tax may be used only for the
11-12 purpose of financing the operation of the crime control and
11-13 prevention district. The proposition for adopting a tax under this
11-14 section and the proposition for creation of a crime control and
11-15 prevention district shall be submitted at the same election. <For
11-16 purposes of Subsection (c) of Section 323.101 of this code, a tax
11-17 under this section is not a county sales and use tax.>
11-18 (b) A tax adopted for a district under this section for
11-19 financing the operation of the district may be decreased in
11-20 increments of one-eighth <one-fourth> of one percent by order of
11-21 the board of directors of the district. The rate of a tax adopted
11-22 for a district under this section may be increased in increments of
11-23 one-eighth <one-fourth> of one percent, not to exceed a total tax
11-24 rate of three-fourths of one <one-half> percent for financing the
11-25 operation of the crime control and prevention district, by order of
11-26 the board of directors of the crime control and prevention district
11-27 if approved by a majority of the qualified voters voting at an
12-1 election called by the board and held in the district on the
12-2 question of increasing the tax rate. At the election, the ballot
12-3 shall be printed to provide for voting for or against the following
12-4 proposition: "The increase of the ____________ County Crime
12-5 Control and Prevention District sales and use tax rate to
12-6 ____________ percent." If there is an increase or decrease under
12-7 this subsection in the rate of a tax imposed under this section,
12-8 the new rate takes effect on the first day of the next calendar
12-9 year after the expiration of one calendar quarter after the
12-10 comptroller receives notice of the increase or decrease. However,
12-11 if the comptroller notifies the president of the board of directors
12-12 of the district in writing within 10 days after receipt of the
12-13 notification that the comptroller requires more time to implement
12-14 reporting and collection procedures, the comptroller may delay
12-15 implementation of the rate change for one whole calendar quarter.
12-16 In that event, the new rate takes effect on the first day of the
12-17 next calendar quarter following the elapsed quarter.
12-18 SECTION 13. Sections 323.404(a) and (b), Tax Code, are
12-19 amended to read as follows:
12-20 (a) Except as provided by Subsection (b), in an election to
12-21 adopt, or increase or reduce the rate of, the tax, the ballot shall
12-22 be printed to provide for voting for or against the proposition:
12-23 "Adoption of a _____ of one <one-half> percent county sales and use
12-24 tax within the county to be used to reduce the county property tax
12-25 rate." (One-half, five-eighths, or three-fourths to be inserted as
12-26 appropriate.)
12-27 (b) In an election in a county that includes no territory
13-1 within the limits of a municipality, the ballot shall be printed to
13-2 provide for voting for or against the proposition: "Adoption of a
13-3 _____ <one> percent county sales and use tax within the county to
13-4 be used to reduce the county property tax rate." (One, one and
13-5 one-eighth, or one and one-fourth to be inserted as appropriate.)
13-6 SECTION 14. Section 323.405(a), Tax Code, is amended to read
13-7 as follows:
13-8 (a) Within 10 days after an election in which the voters of
13-9 a county approve of the adoption or abolition, or increase or
13-10 reduction in the rate, of the tax authorized by this chapter, the
13-11 commissioners court of the county shall, by resolution entered in
13-12 its minutes of proceedings, declare the results of the election. A
13-13 resolution or ordinance under this section must include statements
13-14 showing:
13-15 (1) the date of the election;
13-16 (2) the proposition on which the vote was held;
13-17 (3) the total number of votes cast for and against the
13-18 proposition; <and>
13-19 (4) the number of votes by which the proposition was
13-20 approved; and
13-21 (5) the rate of the tax.
13-22 SECTION 15. Section 324.021, Tax Code, is amended to read as
13-23 follows:
13-24 Sec. 324.021. Tax Authorized. <(a)> A county having a
13-25 population of 50,000 or less may adopt or abolish the sales and use
13-26 tax authorized by this chapter at an election held in the county.
13-27 <(b) A county may not adopt a tax under this chapter if as a
14-1 result of the adoption of the tax the combined rate of all sales
14-2 and use taxes imposed by the county and other political
14-3 subdivisions of this state having territory in the county would
14-4 exceed two percent at any location in the county.>
14-5 <(c) If the voters of a county approve the adoption of the
14-6 tax at an election held on the same election date on which another
14-7 political subdivision adopts a sales and use tax or approves the
14-8 increase in the rate of its sales and use tax and as a result the
14-9 combined rate of all sales and use taxes imposed by the county and
14-10 other political subdivisions of this state having territory in the
14-11 county would exceed two percent at any location in the county, the
14-12 election to adopt a sales and use tax under this chapter has no
14-13 effect.>
14-14 SECTION 16. Section 324.022, Tax Code, is amended to read as
14-15 follows:
14-16 Sec. 324.022. TAX RATE. The rate of the tax authorized by
14-17 this chapter is one-half, five-eighths, or three-fourths of one
14-18 percent.
14-19 SECTION 17. Section 324.023(a), Tax Code, is amended to read
14-20 as follows:
14-21 (a) The adoption or abolition, or an increase or reduction
14-22 in the rate, of the tax takes effect on the first day of the first
14-23 calendar quarter occurring after the expiration of the first
14-24 complete calendar quarter occurring after the date on which the
14-25 comptroller receives a notice of the results of the election.
14-26 SECTION 18. Sections 324.061(a) and (b), Tax Code, are
14-27 amended to read as follows:
15-1 (a) An election to adopt or abolish, or increase or reduce
15-2 the rate of, the tax authorized by this chapter is called by the
15-3 adoption of an order by the commissioners court of the county. The
15-4 commissioners court shall call an election if a number of qualified
15-5 voters of the county equal to at least five percent of the number
15-6 of registered voters in the county petitions the commissioners
15-7 court to call the election.
15-8 (b) At the <an> election <to adopt the tax>, the ballot
15-9 shall be prepared to permit voting for or against the proposition:
15-10 "The adoption of a local sales and use tax in (name of county) at
15-11 the rate of _______ of one <one-half> percent to provide revenue
15-12 for health services in the county." (One-half, five-eighths, or
15-13 three-fourths to be inserted, as appropriate.)
15-14 SECTION 19. Section 285.061(a), Health and Safety Code, is
15-15 amended to read as follows:
15-16 (a) A hospital district that is authorized to impose ad
15-17 valorem taxes may adopt a sales and use tax, change the rate of its
15-18 sales and use tax, or abolish its sales and use tax at an election
15-19 held as provided by this subchapter. The <Subject to the
15-20 limitations provided by Subsections (c) and (d), the> district may
15-21 impose the tax at a rate in increments of one-eighth percent, not
15-22 to exceed two and one-fourth <, one-fourth percent, one-half
15-23 percent, one percent, one and one-half percent, or two> percent.
15-24 SECTION 20. Section 775.0751(a), Health and Safety Code, is
15-25 amended to read as follows:
15-26 (a) A district may adopt a sales and use tax, change the
15-27 rate of its sales and use tax, or abolish its sales and use tax at
16-1 an election held as provided by Section 775.0752. The district may
16-2 impose the tax at a rate in increments of one-eighth percent, with
16-3 the minimum tax rate equal to one-half percent and the maximum tax
16-4 rate equal to two and one-fourth <of one-half percent, one percent,
16-5 one and one-half percent, or two> percent. Revenue from the tax
16-6 may be used for any purpose for which ad valorem tax revenue of the
16-7 district may be used.
16-8 SECTION 21. Section 776.0751(a), Health and Safety Code, is
16-9 amended to read as follows:
16-10 (a) A district may adopt a sales and use tax, change the
16-11 rate of its sales and use tax, or abolish its sales and use tax at
16-12 an election held as provided by Section 776.0752. The district may
16-13 impose the tax at a rate in increments of one-eighth percent, with
16-14 the minimum tax rate equal to one-half percent and the maximum tax
16-15 rate equal to two and one-fourth <of one-half percent, one percent,
16-16 one and one-half percent, or two> percent. Revenue from the tax
16-17 may be used for any purpose for which ad valorem tax revenue of the
16-18 district may be used.
16-19 SECTION 22. Section 4(e)(2)(A), Chapter 141, Acts of the
16-20 63rd Legislature, Regular Session, 1973 (Article 1118x, Vernon's
16-21 Texas Civil Statutes), is amended to read as follows:
16-22 (A) In addition to the methods of removal of
16-23 board members provided by Subdivisions (1) and (4) of this
16-24 subsection, board members of an authority <in which the rate of the
16-25 sales and use tax is one percent and> whose principal city has a
16-26 population of more than 1.6 million <1,200,000>, according to the
16-27 most recent federal census, are subject to removal by the recall
17-1 procedure provided by this subdivision.
17-2 SECTION 23. Section 4(e)(3), Chapter 141, Acts of the 63rd
17-3 Legislature, Regular Session, 1973 (Article 1118x, Vernon's Texas
17-4 Civil Statutes), is amended to read as follows:
17-5 (3) In an authority in which the principal city has a
17-6 population of less than 500,000 according to the last preceding
17-7 federal census and that was confirmed in a tax election before July
17-8 1, 1985 <in which the rate of the sales and use tax is one
17-9 percent>, a board member may be removed from office by a majority
17-10 vote of the body that appointed that member for malfeasance or
17-11 nonfeasance in office.
17-12 SECTION 24. Section 11B, Chapter 141, Acts of the 63rd
17-13 Legislature, Regular Session, 1973 (Article 1118x, Vernon's Texas
17-14 Civil Statutes), is amended to read as follows:
17-15 Sec. 11B. <(A)> Subject to approval at a tax election in
17-16 accordance with this Act, the board of an authority shall be
17-17 authorized to levy, collect and impose a local sales and use tax
17-18 for the benefit of the authority. The provisions of Chapter 322,
17-19 Tax Code, shall be applicable to the levy, imposition and
17-20 collection of such tax. The <permissible rates for a> local sales
17-21 and use tax may be imposed in increments of one-eighth percent,
17-22 with the minimum tax rate equal to one-quarter of one percent and
17-23 the maximum tax rate equal to one and one-quarter of one percent.
17-24 <levied under this Act are>:
17-25 <(1) one-quarter of one percent;>
17-26 <(2) one-half of one percent;>
17-27 <(3) three-quarters of one percent; and>
18-1 <(4) one percent.>
18-2 SECTION 25. Section 11(f)(3), Chapter 683, Acts of the 66th
18-3 Legislature, Regular Session, 1979 (Article 1118y, Vernon's Texas
18-4 Civil Statutes), is amended to read as follows:
18-5 (3) If an authority created by a principal city having
18-6 a population of more than 800,000 adds territory that is a city or
18-7 town that imposes an additional sales and use tax under Chapter
18-8 321, Tax Code, the additional sales and use tax is reduced to the
18-9 highest rate allowable under Section 321.103(b), Tax Code, that
18-10 will not result in exceeding the maximum combined local sales and
18-11 use tax rates prescribed by Chapter 325, Tax Code, or if the rate
18-12 cannot be reduced to a rate not in violation of Chapter 325, the
18-13 additional sales and use tax is repealed as provided by Section
18-14 321.1025, Tax Code. The effective date for the reduction of a tax
18-15 rate or the repeal and for the imposition of the tax authorized to
18-16 be collected under Section 16 of this Act in the added territory is
18-17 the date that, under Section 321.102(b), Tax Code, the rate
18-18 reduction or repeal of the additional sales and use tax is
18-19 effective in the territory.
18-20 SECTION 26. Section 16(a), Chapter 683, Acts of the 66th
18-21 Legislature, Regular Session, 1979 (Article 1118y, Vernon's Texas
18-22 Civil Statutes), is amended to read as follows:
18-23 (a) Subject to approval at a confirmation election in
18-24 accordance with this Act, the executive committee is authorized to
18-25 levy, collect, and impose a local sales and use tax for the benefit
18-26 of the authority. The tax rate may be levied or collected only in
18-27 increments of one-eighth of one percent, with the minimum tax rate
19-1 equal to one-quarter of one percent and the maximum tax rate equal
19-2 to one and one-quarter of one <as a quarter of one percent, a half
19-3 of one percent, three-quarters of one percent, or one> percent.
19-4 The provisions of Chapter 322, Tax Code, shall be applicable to the
19-5 levy, imposition, and collection of the tax.
19-6 SECTION 27. Section 5(a), Article 1118z, Revised Statutes,
19-7 is amended to read as follows:
19-8 (a) When the board considers implementation of a mass
19-9 transit plan developed by the department to be feasible, the board
19-10 shall, unless an additional sales and use tax has been imposed
19-11 within the city at the maximum tax rate allowable under Section
19-12 321.101(b), Tax Code, call an election to establish a source of
19-13 continuing revenue for mass transit in the form of an additional
19-14 local sales and use tax in an amount determined by the board as
19-15 provided by Subsection (a) of Section 8 of this article. An
19-16 election under this section may not be scheduled or held on the
19-17 same day as an election held under Section 321.101(b), Tax Code, by
19-18 the city.
19-19 SECTION 28. Section 8(a), Article 1118z, Revised Statutes,
19-20 is amended to read as follows:
19-21 (a) Subject to approval at a tax election in accordance with
19-22 this article, the board may levy and collect a local sales and use
19-23 tax for financing of the system, the sales tax portion of which
19-24 applies to receipts from the sale of all taxable items within the
19-25 city or town that are subject to taxation under the Limited Sales,
19-26 Excise, and Use Tax Act, Chapter 151, Tax Code. The effective date
19-27 of a local sales and use tax is the first day of the second
20-1 calendar quarter that begins after the date the comptroller
20-2 receives, under Subsection (f) of Section 5 of this article, notice
20-3 of an order except as provided by Subsection (e) of this section.
20-4 The <permissible rates for a> local sales and use tax may be
20-5 imposed in increments of one-eighth of one percent, with the
20-6 minimum tax rate equal to one-quarter of one percent and the
20-7 maximum tax rate equal to three-quarters <levied under this article
20-8 are:>
20-9 <(1) one quarter of one percent; and>
20-10 <(2) one half> of one percent.
20-11 SECTION 29. Section 3.03, Crime Control and Prevention
20-12 District Act (Article 2370c-4, Vernon's Texas Civil Statutes), is
20-13 amended to read as follows:
20-14 Sec. 3.03. ELECTION ORDER. (a) An order calling an
20-15 election under Section 3.02 of this Act must state:
20-16 (1) the nature of the election, including the
20-17 proposition that is to appear on the ballot;
20-18 (2) the date of the election;
20-19 (3) the hours during which the polls will be open;
20-20 (4) the location of the polling places;
20-21 (5) in summary form, the approved budget plan and
20-22 crime control plan of the proposed district; and
20-23 (6) the proposed rate of the sales and use tax for the
20-24 district.
20-25 (b) The proposed rate for the district sales and use tax
20-26 imposed under Subchapter B, Chapter 323, Tax Code, may be only:
20-27 (1) one-fourth of one percent; <or>
21-1 (2) three-eighths of one percent;
21-2 (3) one-half of one percent;
21-3 (4) five-eighths of one percent; or
21-4 (5) three-fourths of one percent.
21-5 <(c) A sales and use tax approved under this Act may be
21-6 charged in addition to any other sales and use tax authorized by
21-7 law and is included in computing a combined sales and use tax rate
21-8 for purposes of any limitation provided by law on the maximum
21-9 combined sales and use tax rate of political subdivisions.>
21-10 SECTION 30. Sections 4A(d), (m), and (o), Development
21-11 Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil
21-12 Statutes), are amended to read as follows:
21-13 (d) The city may levy a sales and use tax for the benefit of
21-14 a corporation under this section if the tax is authorized by a
21-15 majority of the qualified voters of the city voting at an election
21-16 called and held for that purpose. If the city adopts the tax,
21-17 there is imposed a tax on the receipts from the sale at retail of
21-18 taxable items within the city at the rate approved by the voters.
21-19 The rate must be equal to one-eighth, one-fourth, three-eighths,
21-20 <or> one-half, five-eighths, or three-fourths of one percent. <The
21-21 city may not adopt a rate that would result in a combined rate of
21-22 all sales and use taxes, including the tax under this section,
21-23 imposed by the city and other political subdivisions of this state
21-24 having territory in the city that exceeds two percent. An election
21-25 adopting a rate that exceeds the limit on the combined rate has no
21-26 effect.> There is also imposed an excise tax on the use, storage,
21-27 or other consumption within the city of taxable items purchased,
22-1 leased, or rented from a retailer during the period that the tax is
22-2 effective within the city. The rate of the excise tax is the same
22-3 as the rate of the sales tax portion of the tax and is applied to
22-4 the sales price of the taxable items.
22-5 (m) In an election to adopt the tax under this section, the
22-6 ballot shall be printed to provide for voting for or against the
22-7 proposition: "The adoption of a sales and use tax for the
22-8 promotion and development of new and expanded business enterprises
22-9 at the rate of _____ of one percent" (one-eighth, one-fourth,
22-10 three-eighths, <or> one-half, five-eighths, or three-fourths to be
22-11 inserted as appropriate).
22-12 (o) In a city in which a sales and use tax for the benefit
22-13 of a corporation has been imposed under this section, in the same
22-14 manner and by the same procedure the city by majority vote of the
22-15 qualified voters of the city voting at an election called and held
22-16 for the purpose may reduce or increase the tax. The rate may be
22-17 reduced in one or more increments of one-eighth of one percent to a
22-18 minimum of one-eighth of one percent or increased in one or more
22-19 increments of one-eighth of one percent to a maximum of
22-20 three-fourths <one-half> of one percent. On petition of 10 percent
22-21 or more of the registered voters of the city requesting an election
22-22 on the increase or decrease of the tax under this section, the
22-23 governing body of the city shall order an election on the issue.
22-24 The ballot shall be printed in the same manner as the ballot under
22-25 Subsection (m) of this section.
22-26 SECTION 31. Section 4B(a)(1), Development Corporation Act of
22-27 1979 (Article 5190.6, Vernon's Texas Civil Statutes), is amended to
23-1 read as follows:
23-2 (1) "Eligible city" means a city:
23-3 (A) that is located in a county with a
23-4 population of 750,000 or more, according to the most recent
23-5 federal decennial census, and in which the combined rate of all
23-6 sales and use taxes imposed by the city, the state, and other
23-7 political subdivisions of the state having territory in the city
23-8 does not exceed 7.5 <7.25> percent on the date of any election held
23-9 under or made applicable to this section;
23-10 (B) that has a population of 400,000 or more,
23-11 according to the most recent federal decennial census, and that is
23-12 located in more than one county, and in which the combined rate of
23-13 all sales and use taxes imposed by the city, the state, and other
23-14 political subdivisions of the state having territory in the city,
23-15 including taxes under this section, does not exceed 8.25 percent;
23-16 or
23-17 (C) to which Section 4A of this Act applies.
23-18 SECTION 32. Section 4B(e), Development Corporation Act of
23-19 1979 (Article 5190.6, Vernon's Texas Civil Statutes), as amended by
23-20 Section 3, Chapter 1022, and Section 12, Chapter 1031, Acts of the
23-21 73rd Legislature, Regular Session, 1993, is amended to read as
23-22 follows:
23-23 (e) The rate of a tax adopted under this section must be
23-24 one-eighth, one-fourth, three-eighths, <or> one-half, five-eighths,
23-25 or three-fourths of one percent. The ballot proposition at the
23-26 election held to adopt the tax must specify the rate of the tax to
23-27 be adopted. A corporation that holds an election to reduce a tax
24-1 imposed under Section 4A of this Act may in a separate proposition
24-2 on the same ballot adopt a tax under this section. If an eligible
24-3 city adopts the tax, a tax is imposed on the receipts from the sale
24-4 at retail of taxable items within the eligible city at the rate
24-5 approved at the election. There is also imposed an excise tax on
24-6 the use, storage, or other consumption within the eligible city of
24-7 tangible personal property purchased, leased, or rented from a
24-8 retailer during the period that the tax is effective within the
24-9 eligible city. The rate of the excise tax is the same as the rate
24-10 of the sales tax portion of the tax and is applied to the sale
24-11 price of the tangible personal property.
24-12 SECTION 33. The following are repealed:
24-13 (1) Sections 321.101(e) and (f), Tax Code;
24-14 (2) Sections 285.061(c) and (d), Health and Safety
24-15 Code;
24-16 (3) Sections 775.0751(c) and (d), Health and Safety
24-17 Code;
24-18 (4) Sections 776.0751(c) and (d), Health and Safety
24-19 Code;
24-20 (5) Sections 11A(i) and (j), Chapter 141, Acts of the
24-21 63rd Legislature, Regular Session, 1973 (Article 1118x, Vernon's
24-22 Texas Civil Statutes);
24-23 (6) Sections 16(f) and (g), Chapter 683, Acts of the
24-24 66th Legislature, Regular Session, 1979 (Article 1118y, Vernon's
24-25 Texas Civil Statutes);
24-26 (7) Sections 8(g) and (h), Article 1118z, Revised
24-27 Statutes; and
25-1 (8) Sections 4A(n) and (p), Development Corporation
25-2 Act of 1979 (Article 5190.6, Vernon's Texas Civil Statutes).
25-3 SECTION 34. (a) Except as provided by Section 35, this Act
25-4 takes effect October 1, 1995.
25-5 (b) This Act applies to a sale, storage, use, or other
25-6 consumption of a taxable item under Chapter 151, Tax Code, on or
25-7 after that date. The sale, storage, use, or other consumption of a
25-8 taxable item before the effective date of this Act is governed by
25-9 the law in effect at the time of the transaction, and that law is
25-10 continued in effect for the enforcement and collection of those
25-11 taxes.
25-12 SECTION 35. Notwithstanding any other law, no election may
25-13 be held to adopt or increase the rate of a local sales and use
25-14 tax, as defined by Section 325.001, Tax Code, as added by this Act,
25-15 after the effective date of this section and before November 7,
25-16 1995. This section takes effect on the earliest date it may take
25-17 effect under Section 39, Article III, Texas Constitution.
25-18 SECTION 36. The importance of this legislation and the
25-19 crowded condition of the calendars in both houses create an
25-20 emergency and an imperative public necessity that the
25-21 constitutional rule requiring bills to be read on three several
25-22 days in each house be suspended, and this rule is hereby suspended,
25-23 and that this Act take effect and be in force according to its
25-24 terms, and it is so enacted.