1-1 By: Wentworth S.B. No. 439
1-2 (In the Senate - Filed February 3, 1995; February 6, 1995,
1-3 read first time and referred to Committee on Finance; May 1, 1995,
1-4 reported favorably by the following vote: Yeas 7, Nays 1;
1-5 May 1, 1995, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to an additional sales tax in certain municipalities for
1-9 ad valorem property tax relief.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Section 321.101, Tax Code, is amended to read as
1-12 follows:
1-13 Sec. 321.101. Tax Authorized. (a) A municipality may adopt
1-14 or repeal a sales and use tax authorized by this chapter, other
1-15 than the additional municipal sales and use tax, at an election in
1-16 which a majority of the qualified voters of the municipality
1-17 approve the adoption or repeal of the tax.
1-18 (b) A municipality that is not disqualified may, by a
1-19 majority vote of the qualified voters of the municipality voting at
1-20 an election held for that purpose, adopt an additional sales and
1-21 use tax for the benefit of the municipality in accordance with this
1-22 chapter. A municipality is disqualified from adopting the
1-23 additional sales and use tax if the municipality:
1-24 (1) is included within the boundaries of a rapid
1-25 transit authority created under Chapter 141, Acts of the 63rd
1-26 Legislature, Regular Session, 1973 (Article 1118x, Vernon's Texas
1-27 Civil Statutes);
1-28 (2) is included within the boundaries of a regional
1-29 transportation authority created under Chapter 683, Acts of the
1-30 66th Legislature, Regular Session, 1979 (Article 1118y, Vernon's
1-31 Texas Civil Statutes), by a principal city having a population of
1-32 less than 800,000, unless the city has a population of 400,000 or
1-33 more and is located in more than one county;
1-34 (3) is wholly or partly located in a county that
1-35 contains territory within the boundaries of a regional
1-36 transportation authority created under Chapter 683, Acts of the
1-37 66th Legislature, Regular Session, 1979 (Article 1118y, Vernon's
1-38 Texas Civil Statutes), by a principal city having a population in
1-39 excess of 800,000, unless:
1-40 (A) the city is a contiguous city; or
1-41 (B) the municipality is not included within the
1-42 boundaries of the authority and is located wholly or partly in a
1-43 county in which fewer than 250 persons are residents of both the
1-44 county and the authority according to the most recent federal
1-45 census; or
1-46 (C) the municipality is not and on January 1,
1-47 1993, was not included within the boundaries of the authority; or
1-48 (4) imposes a tax authorized by Article 1118z, Revised
1-49 Statutes.
1-50 (c) A municipality is not disqualified from adopting an
1-51 additional sales and use tax if the municipality has not elected to
1-52 participate in the authorities listed in Subsection (b) and does
1-53 not impose the tax authorized under those subdivisions.
1-54 (d) For the purposes of Subsection (b), "principal city" and
1-55 "contiguous city" have the meanings assigned by Chapter 683, Acts
1-56 of the 66th Legislature, Regular Session, 1979 (Article 1118y,
1-57 Vernon's Texas Civil Statutes).
1-58 (e) <(d)> In any municipality in which an additional sales
1-59 and use tax has been imposed, in the same manner and by the same
1-60 procedure the municipality by majority vote of the qualified voters
1-61 of the municipality voting at an election held for that purpose may
1-62 reduce, increase, or abolish the additional sales and use tax.
1-63 (f) <(e)> An authority created under Chapter 141, Acts of
1-64 the 63rd Legislature, Regular Session, 1973 (Article 1118x,
1-65 Vernon's Texas Civil Statutes), or Chapter 683, Acts of the 66th
1-66 Legislature, Regular Session, 1979 (Article 1118y, Vernon's Texas
1-67 Civil Statutes), is prohibited from imposing the tax provided for
1-68 in those Acts if within the boundaries of the authority there is a
2-1 municipality that has adopted the additional sales and use tax
2-2 provided for in this section.
2-3 (g) <(f)> A municipality may not adopt or increase a sales
2-4 and use tax or an additional sales and use tax under this section
2-5 if as a result of the adoption or increase of the tax the combined
2-6 rate of all sales and use taxes imposed by the municipality and
2-7 other political subdivisions of this state having territory in the
2-8 municipality would exceed two percent at any location in the
2-9 municipality.
2-10 (h) <(g)> For the purposes of Subsection (g) <(f)>,
2-11 "territory" in a municipality having a population of 5,000 or less
2-12 and bordering on the Gulf of Mexico does not include any area
2-13 covered by water and in which no person has a place of business to
2-14 which a sales tax permit issued under Subchapter F of Chapter 151
2-15 applies.
2-16 SECTION 2. The importance of this legislation and the
2-17 crowded condition of the calendars in both houses create an
2-18 emergency and an imperative public necessity that the
2-19 constitutional rule requiring bills to be read on three several
2-20 days in each house be suspended, and this rule is hereby suspended.
2-21 * * * * *