By: Wentworth S.B. No. 439
A BILL TO BE ENTITLED
AN ACT
1-1 relating to an additional sales tax in certain municipalities for
1-2 ad valorem property tax relief.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 321.101, Tax Code, is amended to read as
1-5 follows:
1-6 Sec. 321.101. Tax Authorized. (a) A municipality may adopt
1-7 or repeal a sales and use tax authorized by this chapter, other
1-8 than the additional municipal sales and use tax, at an election in
1-9 which a majority of the qualified voters of the municipality
1-10 approve the adoption or repeal of the tax.
1-11 (b) A municipality that is not disqualified may, by a
1-12 majority vote of the qualified voters of the municipality voting at
1-13 an election held for that purpose, adopt an additional sales and
1-14 use tax for the benefit of the municipality in accordance with this
1-15 chapter. A municipality is disqualified from adopting the
1-16 additional sales and use tax if the municipality:
1-17 (1) is included within the boundaries of a rapid
1-18 transit authority created under Chapter 141, Acts of the 63rd
1-19 Legislature, Regular Session, 1973 (Article 1118x, Vernon's Texas
1-20 Civil Statutes);
1-21 (2) is included within the boundaries of a regional
1-22 transportation authority created under Chapter 683, Acts of the
1-23 66th Legislature, Regular Session, 1979 (Article 1118y, Vernon's
2-1 Texas Civil Statutes), by a principal city having a population of
2-2 less than 800,000, unless the city has a population of 400,000 or
2-3 more and is located in more than one county;
2-4 (3) is wholly or partly located in a county that
2-5 contains territory within the boundaries of a regional
2-6 transportation authority created under Chapter 683, Acts of the
2-7 66th Legislature, Regular Session, 1979 (Article 1118y, Vernon's
2-8 Texas Civil Statutes), by a principal city having a population in
2-9 excess of 800,000, unless:
2-10 (A) the city is a contiguous city; or
2-11 (B) the municipality is not included within the
2-12 boundaries of the authority and is located wholly or partly in a
2-13 county in which fewer than 250 persons are residents of both the
2-14 county and the authority according to the most recent federal
2-15 census; or
2-16 (C) the municipality is not and on January 1,
2-17 1993, was not included within the boundaries of the authority; or
2-18 (4) imposes a tax authorized by Article 1118z, Revised
2-19 Statutes.
2-20 (c) A municipality is not disqualified from adopting an
2-21 additional sales and use tax if the municipality has not elected to
2-22 participate in the authorities listed in Subsection (b) and does
2-23 not impose the tax authorized under those subdivisions.
2-24 (d) For the purposes of Subsection (b), "principal city" and
2-25 "contiguous city" have the meanings assigned by Chapter 683, Acts
3-1 of the 66th Legislature, Regular Session, 1979 (Article 1118y,
3-2 Vernon's Texas Civil Statutes).
3-3 (e) <(d)> In any municipality in which an additional sales
3-4 and use tax has been imposed, in the same manner and by the same
3-5 procedure the municipality by majority vote of the qualified voters
3-6 of the municipality voting at an election held for that purpose may
3-7 reduce, increase, or abolish the additional sales and use tax.
3-8 (f) <(e)> An authority created under Chapter 141, Acts of
3-9 the 63rd Legislature, Regular Session, 1973 (Article 1118x,
3-10 Vernon's Texas Civil Statutes), or Chapter 683, Acts of the 66th
3-11 Legislature, Regular Session, 1979 (Article 1118y, Vernon's Texas
3-12 Civil Statutes), is prohibited from imposing the tax provided for
3-13 in those Acts if within the boundaries of the authority there is a
3-14 municipality that has adopted the additional sales and use tax
3-15 provided for in this section.
3-16 (g) <(f)> A municipality may not adopt or increase a sales
3-17 and use tax or an additional sales and use tax under this section
3-18 if as a result of the adoption or increase of the tax the combined
3-19 rate of all sales and use taxes imposed by the municipality and
3-20 other political subdivisions of this state having territory in the
3-21 municipality would exceed two percent at any location in the
3-22 municipality.
3-23 (h) <(g)> For the purposes of Subsection (g)<(f)>,
3-24 "territory" in a municipality having a population of 5,000 or less
3-25 and bordering on the Gulf of Mexico does not include any area
4-1 covered by water and in which no person has a place of business to
4-2 which a sales tax permit issued under Subchapter F of Chapter 151
4-3 applies.
4-4 SECTION 2. The importance of this legislation and the
4-5 crowded condition of the calendars in both houses create an
4-6 emergency and an imperative public necessity that the
4-7 constitutional rule requiring bills to be read on three several
4-8 days in each house be suspended, and this rule is hereby suspended.