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.