By West H.B. No. 591
76R2216 CBH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the rate of the county sales and use tax.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Sections 323.101(a), (d), and (e), Tax Code, are
1-5 amended to read as follows:
1-6 (a) A qualified county may adopt or repeal the county sales
1-7 and use tax authorized by this chapter or increase or reduce the
1-8 rate of the tax at an election in which a majority of the qualified
1-9 voters of the county approve the adoption or repeal of the tax, or
1-10 the increase or reduction of the rate, as applicable. A county may
1-11 impose the tax in increments of one-eighth of one percent with a
1-12 minimum tax of one-eighth of one percent and a maximum tax of two
1-13 percent.
1-14 (d) A county may not adopt or increase the rate of a sales
1-15 and use tax under this section if as a result of the adoption of
1-16 the tax or the increase of the rate the combined rate of all sales
1-17 and use taxes imposed by the county and other political
1-18 subdivisions of this state having territory in the county would
1-19 exceed two percent at any location in the county.
1-20 (e) If the voters of a county approve the adoption or rate
1-21 increase of a sales and use tax at an election held on the same
1-22 election date on which a municipality having territory in the
1-23 county adopts a sales and use tax or an additional sales and use
1-24 tax and as a result the combined rate of all sales and use taxes
2-1 imposed by the county and other political subdivisions of this
2-2 state having territory in the county would exceed two percent at
2-3 any location in the county, the election to adopt or increase the
2-4 rate of a county sales and use tax has no effect.
2-5 SECTION 2. Section 323.102, Tax Code, is amended by adding
2-6 Subsection (d) to read as follows:
2-7 (d) A change in the rate of a tax imposed under this chapter
2-8 takes effect on the first day of the first calendar quarter after
2-9 the expiration of the first complete calendar quarter occurring
2-10 after the date on which the comptroller receives a notice of the
2-11 action as required by Section 323.405(b).
2-12 SECTION 3. Section 323.103, Tax Code, is amended to read as
2-13 follows:
2-14 Sec. 323.103. SALES TAX. In a county that has adopted
2-15 the tax authorized by this chapter, there is imposed a tax on the
2-16 receipts from the sale at retail of taxable items within the county
2-17 at the rate approved at the election [of one-half of one percent,
2-18 or in a county that includes no territory within the limits of a
2-19 municipality, one percent].
2-20 SECTION 4. Section 323.404, Tax Code, is amended to read as
2-21 follows:
2-22 Sec. 323.404. BALLOT WORDING. (a) In [Except as provided by
2-23 Subsection (b), in] an election to adopt or change the rate of the
2-24 tax, the ballot shall be printed to provide for voting for or
2-25 against the proposition: "Adoption of a [one-half percent] county
2-26 sales and use tax within the county to be used to reduce the county
2-27 property tax rate at the rate of ________ (proposed tax rate)
3-1 percent."
3-2 (b) [In an election in a county that includes no territory
3-3 within the limits of a municipality, the ballot shall be printed to
3-4 provide for voting for or against the proposition: "Adoption of a
3-5 one percent county sales and use tax within the county to be used
3-6 to reduce the county property tax rate."]
3-7 [(c)] In an election to repeal the tax, the ballot shall be
3-8 printed to provide for voting for or against the proposition:
3-9 "Abolition of the county sales and use tax within the county."
3-10 SECTION 5. Section 323.405(a), Tax Code, is amended to read
3-11 as follows:
3-12 (a) Within 10 days after an election in which the voters of
3-13 a county approve of the adoption, [or] abolition, or change in the
3-14 rate of the tax authorized by this chapter, the commissioners court
3-15 of the county shall, by resolution entered in its minutes of
3-16 proceedings, declare the results of the election. A resolution or
3-17 ordinance under this section must include statements showing:
3-18 (1) the date of the election;
3-19 (2) the proposition on which the vote was held;
3-20 (3) the total number of votes cast for and against the
3-21 proposition; [and]
3-22 (4) the number of votes by which the proposition was
3-23 approved; and
3-24 (5) the rate of the tax.
3-25 SECTION 6. The importance of this legislation and the
3-26 crowded condition of the calendars in both houses create an
3-27 emergency and an imperative public necessity that the
4-1 constitutional rule requiring bills to be read on three several
4-2 days in each house be suspended, and this rule is hereby suspended,
4-3 and that this Act take effect and be in force from and after its
4-4 passage, and it is so enacted.