JWB S.B. 590 75(R)BILL ANALYSIS


WAYS & MEANS
S.B. 590
By: Duncan (Turner, Bob)
4-11-97
Committee Report (Unamended)



BACKGROUND 

Sections 321 and 323, Tax Code, impose the municipal sales and use tax and
the county sales and use tax.  Fully implemented, the taxes cannot cause
the local tax rate to exceed two percent. Any election to raise the sales
tax rate that causes the cumulative rate to exceed two percent is invalid.
Currently, there is no provision for an adjustment in this situation. 

PURPOSE

The bill would establish the requirements for the adoption or increase of
local sales and use taxes by a municipality or county in which previous
elections adopting the taxes are invalid. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency or
institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.Amends Section 321.101, Tax Code (Tax Authorized), by adding
Subsection (h), to authorize a municipality, in which the adoption or
increase of a sales and use tax approved by the voters in an election is
void, to adopt or increase the sales and use tax previously approved by
the voters by an ordinance or resolution of the governing body of the
municipality if certain conditions exist. Requires the governing body of
the municipality to decide to adopt or increase the sales and use tax
before June 30, 1997.  Requires the municipal secretary to send the
comptroller a certified copy of the ordinance or resolution by regular or
certified mail, if the governing body of the municipality adopts or
increases the sales and use tax under this subsection.  Sets forth the
date the tax takes effect.  Provides that this subsection expires October
1, 1998. 

SECTION 2.Amends Section 323.101, Tax Code, by adding Subsection (g), to
authorize a county, in which the adoption or increase of a sales and use
tax approved by the voters in an election is void, to adopt or increase
the sales and use tax previously approved by the voters by a resolution of
the commissioners court if certain conditions exist.  Requires the
commissioners court of the county to decide to adopt or increase the sales
and use tax before June 30, 1997.  Requires the county judge to send the
comptroller a certified copy of the resolution by regular or certified
mail, if the commissioners court adopts or increases the sales and use tax
under this subsection.  Sets forth the date the tax takes effect.
Provides that this subsection expires October 1, 1998. 

SECTION 3.Emergency clause.