By Goodman, Lewis of Tarrant H.B. No. 445
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the imposition by certain municipalities of a sales and
1-3 use tax dedicated to street maintenance.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subtitle C, Title 3, Tax Code, is amended by
1-6 adding Chapter 327 to read as follows:
1-7 CHAPTER 327. MUNICIPAL SALES AND USE TAX FOR STREET MAINTENANCE
1-8 Sec. 327.001. DEFINITION. In this chapter, "municipal
1-9 street" means the entire width of a way held by a municipality in
1-10 fee or by easement or dedication that has a part open for public
1-11 use for vehicular travel. The term does not include a designated
1-12 state or federal highway or road or a designated county road.
1-13 Sec. 327.002. MUNICIPAL SALES AND USE TAX ACT APPLICABLE.
1-14 Except to the extent that a provision of this chapter applies,
1-15 Chapter 321 applies to the tax authorized by this chapter in the
1-16 same manner as that chapter applies to the tax authorized by that
1-17 chapter.
1-18 Sec. 327.003. TAX AUTHORIZED. (a) A municipality may adopt
1-19 the sales and use tax authorized by this chapter at an election
1-20 held in the municipality.
1-21 (b) A municipality may not adopt a tax under this chapter if
1-22 as a result of the adoption of the tax the combined rate of all
1-23 sales and use taxes imposed by the municipality and other political
1-24 subdivisions of this state having territory in the municipality
2-1 would exceed two percent at any location in the municipality.
2-2 (c) If the voters of a municipality approve the adoption of
2-3 the tax at an election held on the same election date on which
2-4 another political subdivision adopts a sales and use tax or
2-5 approves the increase in the rate of its sales and use tax and as a
2-6 result the combined rate of all sales and use taxes imposed by the
2-7 municipality and other political subdivisions of this state having
2-8 territory in the municipality would exceed two percent at any
2-9 location in the municipality, the election to adopt a sales and use
2-10 tax under this chapter has no effect.
2-11 Sec. 327.004. TAX RATE. The rate of the tax authorized by
2-12 this chapter is one-fourth of one percent.
2-13 Sec. 327.005. SALES AND USE TAX EFFECTIVE DATE. (a) The
2-14 adoption of the tax takes effect on the first day of the first
2-15 calendar quarter occurring after the expiration of the first
2-16 complete calendar quarter occurring after the date on which the
2-17 comptroller receives notice of the results of the election.
2-18 (b) If the comptroller determines that an effective date
2-19 provided by Subsection (a) will occur before the comptroller can
2-20 reasonably take the action required to begin collecting the tax,
2-21 the effective date may be extended by the comptroller until the
2-22 first day of the next succeeding calendar quarter.
2-23 Sec. 327.006. ELECTION PROCEDURE. (a) An election to adopt
2-24 the tax authorized by this chapter is called by the adoption of an
2-25 ordinance by the governing body of the municipality.
2-26 (b) At an election to adopt the tax, the ballot shall be
2-27 prepared to permit voting for or against the proposition: "The
3-1 adoption of a local sales and use tax in (name of municipality) at
3-2 the rate of one-fourth of one percent to provide revenue for
3-3 maintenance and repair of municipal streets."
3-4 Sec. 327.007. EXPIRATION OF TAX. (a) The sales and use tax
3-5 authorized by this chapter expires on the fourth anniversary of the
3-6 date the tax originally took effect under Section 327.005.
3-7 (b) The municipality may not call an election on the
3-8 question of authorizing a new tax under this chapter before the
3-9 first anniversary of the date on which the previous tax expired.
3-10 (c) The municipality shall notify the comptroller of the
3-11 scheduled expiration. The comptroller may delay the scheduled
3-12 expiration date if the comptroller notifies the municipality that
3-13 more time is required. The comptroller must provide a new
3-14 expiration date that is not later than the last day of the first
3-15 calendar quarter occurring after the notification to the
3-16 comptroller.
3-17 Sec. 327.008. USE OF TAX REVENUE. Revenue from the tax
3-18 imposed under this chapter may be used only to maintain and repair
3-19 municipal streets existing on the date of the election to adopt the
3-20 tax.
3-21 SECTION 2. This Act takes effect immediately if it receives
3-22 a vote of two-thirds of all the members elected to each house, as
3-23 provided by Section 39, Article III, Texas Constitution. If this
3-24 Act does not receive the vote necessary for immediate effect, this
3-25 Act takes effect September 1, 2001.