By:  Duncan, Bivins                                    S.B. No. 590

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to the adoption or increase of local sales and use taxes

 1-2     by a municipality or county in which previous elections adopting

 1-3     the taxes are invalid.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 321.101, Tax Code, is amended by adding

 1-6     Subsection (h) to read as follows:

 1-7           (h)  A municipality in which the adoption or increase of a

 1-8     sales and use tax approved by the voters in an election held  after

 1-9     September 1, 1995, and before December 31, 1995, is void under

1-10     Subsection (f) because it resulted in the imposition of local sales

1-11     and use taxes that exceeded two percent at any location in the

1-12     municipality may, notwithstanding Subsection (f), adopt or increase

1-13     the sales and use tax previously approved by the voters by an

1-14     ordinance or resolution of the governing body of the municipality.

1-15     The governing body of the municipality must decide to adopt or

1-16     increase the sales and use tax before June 30, 1997.  If the

1-17     governing body of the municipality adopts or increases the sales

1-18     and use tax under this subsection, the municipal secretary shall

1-19     send to the comptroller by certified or registered mail a certified

1-20     copy of the ordinance or resolution.  The tax takes effect on the

1-21     first day of October following the expiration of the first complete

1-22     calendar quarter occurring after the date on which the comptroller

1-23     receives the ordinance or resolution.  This subsection expires

 2-1     October 1, 1998.

 2-2           SECTION 2.  Section 323.101, Tax Code, is amended by adding

 2-3     Subsection (g) to read as follows:

 2-4           (g)  A county in which the adoption or increase of a sales

 2-5     and use tax approved by the voters in an election held  after

 2-6     September 1, 1995, and before December 31, 1995, is void under

 2-7     Subsection (e) because it resulted  in the imposition of local

 2-8     sales and use taxes that exceeded two percent at any location in

 2-9     the county may, notwithstanding Subsection (e), adopt or increase

2-10     the sales and use tax previously approved by the voters by a

2-11     resolution of the commissioners court of the county. The

2-12     commissioners court must decide to adopt or increase the sales and

2-13     use tax before June 30, 1997.  If the commissioners court adopts or

2-14     increases the sales and use tax under this subsection, the county

2-15     judge shall send to the comptroller by certified or registered mail

2-16     a certified copy of the resolution.  The tax takes effect on the

2-17     first day of October following the expiration of the first complete

2-18     calendar quarter occurring after the date on which the comptroller

2-19     receives the resolution.  This subsection expires October 1, 1998.

2-20           SECTION 3.  The importance of this legislation and the

2-21     crowded condition of the calendars in both houses create an

2-22     emergency and an imperative public necessity that the

2-23     constitutional rule requiring bills to be read on three several

2-24     days in each house be suspended, and this rule is hereby suspended,

2-25     and that this Act take effect and be in force from and after its

 3-1     passage, and it is so enacted.