1-1 By: Duncan, Bivins S.B. No. 590 1-2 (In the Senate - Filed February 13, 1997; February 18, 1997, 1-3 read first time and referred to Committee on Intergovernmental 1-4 Relations; February 27, 1997, reported favorably by the following 1-5 vote: Yeas 11, Nays 0; February 27, 1997, sent to printer.) 1-6 A BILL TO BE ENTITLED 1-7 AN ACT 1-8 relating to the adoption or increase of local sales and use taxes 1-9 by a municipality or county in which previous elections adopting 1-10 the taxes are invalid. 1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-12 SECTION 1. Section 321.101, Tax Code, is amended by adding 1-13 Subsection (h) to read as follows: 1-14 (h) A municipality in which the adoption or increase of a 1-15 sales and use tax approved by the voters in an election held after 1-16 September 1, 1995, and before December 31, 1995, is void under 1-17 Subsection (f) because it resulted in the imposition of local sales 1-18 and use taxes that exceeded two percent at any location in the 1-19 municipality may, notwithstanding Subsection (f), adopt or increase 1-20 the sales and use tax previously approved by the voters by an 1-21 ordinance or resolution of the governing body of the municipality. 1-22 The governing body of the municipality must decide to adopt or 1-23 increase the sales and use tax before June 30, 1997. If the 1-24 governing body of the municipality adopts or increases the sales 1-25 and use tax under this subsection, the municipal secretary shall 1-26 send to the comptroller by certified or registered mail a certified 1-27 copy of the ordinance or resolution. The tax takes effect on the 1-28 first day of October following the expiration of the first complete 1-29 calendar quarter occurring after the date on which the comptroller 1-30 receives the ordinance or resolution. This subsection expires 1-31 October 1, 1998. 1-32 SECTION 2. Section 323.101, Tax Code, is amended by adding 1-33 Subsection (g) to read as follows: 1-34 (g) A county in which the adoption or increase of a sales 1-35 and use tax approved by the voters in an election held after 1-36 September 1, 1995, and before December 31, 1995, is void under 1-37 Subsection (e) because it resulted in the imposition of local 1-38 sales and use taxes that exceeded two percent at any location in 1-39 the county may, notwithstanding Subsection (e), adopt or increase 1-40 the sales and use tax previously approved by the voters by a 1-41 resolution of the commissioners court of the county. The 1-42 commissioners court must decide to adopt or increase the sales and 1-43 use tax before June 30, 1997. If the commissioners court adopts or 1-44 increases the sales and use tax under this subsection, the county 1-45 judge shall send to the comptroller by certified or registered mail 1-46 a certified copy of the resolution. The tax takes effect on the 1-47 first day of October following the expiration of the first complete 1-48 calendar quarter occurring after the date on which the comptroller 1-49 receives the resolution. This subsection expires October 1, 1998. 1-50 SECTION 3. The importance of this legislation and the 1-51 crowded condition of the calendars in both houses create an 1-52 emergency and an imperative public necessity that the 1-53 constitutional rule requiring bills to be read on three several 1-54 days in each house be suspended, and this rule is hereby suspended, 1-55 and that this Act take effect and be in force from and after its 1-56 passage, and it is so enacted. 1-57 * * * * *