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.

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