77R7310 CBH-D By Goodman, Lewis of Tarrant H.B. No. 445 Substitute the following for H.B. No. 445: By Davis of Dallas C.S.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. The governing 2-26 body shall call an election if a number of qualified voters of the 2-27 municipality equal to at least five percent of the number of votes 3-1 cast in the most recent regular municipal election petitions the 3-2 governing body to call the election. 3-3 (b) At an election to adopt the tax, the ballot shall be 3-4 prepared to permit voting for or against the proposition: "The 3-5 adoption of a local sales and use tax in (name of municipality) at 3-6 the rate of one-fourth of one percent to provide revenue for 3-7 maintenance and repair of municipal streets." 3-8 Sec. 327.007. REAUTHORIZATION OF TAX. (a) Unless 3-9 imposition of the sales and use tax authorized by this chapter is 3-10 reauthorized as provided by this section, the tax expires on: 3-11 (1) the fourth anniversary of the date the tax 3-12 originally took effect under Section 327.005; or 3-13 (2) the first day of the first calendar quarter 3-14 occurring after the fourth anniversary of the date the tax was last 3-15 reauthorized under this section. 3-16 (b) An election to reauthorize the tax is called and held in 3-17 the same manner as an election to adopt the tax under Section 3-18 327.006, except the ballot proposition shall be prepared to permit 3-19 voting for or against the proposition: "The reauthorization of the 3-20 local sales and use tax in (name of municipality) at the rate of 3-21 one-fourth of one percent to continue providing revenue for 3-22 maintenance and repair of municipal streets." 3-23 (c) If an election to reauthorize the tax is not held before 3-24 the tax expires as provided by Subsection (a), or if a majority of 3-25 the votes cast in an election to reauthorize the tax do not favor 3-26 reauthorization, the municipality may not call an election on the 3-27 question of authorizing a new tax under this chapter before the 4-1 first anniversary of the date on which the tax expired. 4-2 (d) Not later than the 10th day after the date the 4-3 municipality determines that the tax will expire as provided by 4-4 Subsection (a), the municipality shall notify the comptroller of 4-5 the scheduled expiration. The comptroller may delay the scheduled 4-6 expiration date if the comptroller notifies the municipality that 4-7 more time is required. The comptroller must provide a new 4-8 expiration date that is not later than the last day of the first 4-9 calendar quarter occurring after the notification to the 4-10 comptroller. 4-11 Sec. 327.008. USE OF TAX REVENUE. Revenue from the tax 4-12 imposed under this chapter may be used only to maintain and repair 4-13 municipal streets existing on the date of the election to adopt the 4-14 tax. 4-15 SECTION 2. This Act takes effect immediately if it receives 4-16 a vote of two-thirds of all the members elected to each house, as 4-17 provided by Section 39, Article III, Texas Constitution. If this 4-18 Act does not receive the vote necessary for immediate effect, this 4-19 Act takes effect September 1, 2001.