By Solis                                               H.B. No. 938
         77R4100 DAK-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the imposition by certain counties of a sales and use
 1-3     tax dedicated to road 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 328 to read as follows:
 1-7         CHAPTER 328.  COUNTY SALES AND USE TAX FOR ROAD MAINTENANCE
 1-8                      SUBCHAPTER A. GENERAL PROVISIONS
 1-9           Sec. 328.001.  DEFINITIONS. In this chapter, "county road"
1-10     means the entire width of a way held by a county in fee or by
1-11     easement or dedication that has a part open for public use for
1-12     vehicular travel.  The term does not include a designated state or
1-13     federal highway or road within the territory of a municipality.
1-14           Sec. 328.002.  COUNTY SALES AND USE TAX ACT APPLICABLE. (a)
1-15     Except to the extent that a provision of this chapter applies,
1-16     Chapter 323 applies to the tax authorized by this chapter in the
1-17     same manner as that chapter applies to the tax authorized by that
1-18     chapter.
1-19           (b)  Section 323.101(b) does not apply to the tax authorized
1-20     by this subchapter.
1-21              (Sections 328.003-328.020 reserved for expansion
1-22                       SUBCHAPTER B. IMPOSITION OF TAX
1-23           Sec. 328.021.  TAX AUTHORIZED. (a)  A county may adopt the
1-24     sales and use tax authorized by this chapter at an election held in
 2-1     the county.
 2-2           (b)  A county may not adopt a tax under this chapter if as a
 2-3     result of the adoption of the tax the combined rate of all sales
 2-4     and use taxes imposed by the county and other political
 2-5     subdivisions of this state having territory in the county would
 2-6     exceed two percent at any location in the county.
 2-7           (c)  If the voters of a county approve the adoption of the
 2-8     tax at an election held on the same election date on which another
 2-9     political subdivision adopts a sales and use tax or approves the
2-10     increase in the rate of its sales and use tax and as a result the
2-11     combined rate of all sales and use taxes imposed by the county and
2-12     other political subdivisions of this state having territory in the
2-13     county would exceed two percent at any location in the county, the
2-14     election to adopt a sales and use tax under this chapter has no
2-15     effect.
2-16           Sec. 328.022.  TAX RATE. The rate of the tax authorized by
2-17     this chapter is one-fourth of one percent.
2-18           Sec. 328.023.  SALES AND USE TAX EFFECTIVE DATE. (a)  The
2-19     adoption of the tax takes effect on the first day of the first
2-20     calendar quarter occurring after the expiration of the first
2-21     complete calendar quarter occurring after the date on which the
2-22     comptroller receives a notice of the results of the election.
2-23           (b)  If the comptroller determines that an effective date
2-24     provided by Subsection (a) will occur before the comptroller can
2-25     reasonably take the action required to begin collecting the tax,
2-26     the effective date may be extended by the comptroller until the
2-27     first day of the next succeeding calendar quarter.
 3-1              (Sections 328.024-328.060 reserved for expansion
 3-2                    SUBCHAPTER C. TAX ELECTION PROCEDURES
 3-3           Sec. 328.061.  ELECTION PROCEDURE. (a)  An election to adopt
 3-4     the tax authorized by this chapter is called by the adoption of an
 3-5     order by the commissioners court of the county.  The commissioners
 3-6     court shall call an election if a number of qualified voters of the
 3-7     county equal to at least five percent of the number of votes cast
 3-8     in the most recent regular county election petitions the
 3-9     commissioners court to call the election.
3-10           (b)  At an election to adopt the tax, the ballot shall be
3-11     prepared to permit voting for or against the proposition:  "The
3-12     adoption of a local sales and use tax in (name of county) at the
3-13     rate of one-fourth of one percent to provide revenue for
3-14     maintenance and repair of county roads."
3-15              (Sections 328.062-328.080 reserved for expansion
3-16                      SUBCHAPTER D. USE OF TAX REVENUE
3-17           Sec. 328.081.  USE OF TAX REVENUE. Revenue from the tax
3-18     imposed under this chapter may be used only to maintain and repair
3-19     existing county roads.
3-20           SECTION 2.  This Act takes effect immediately if it receives
3-21     a vote of two-thirds of all the members elected to each house, as
3-22     provided by Section 39, Article III, Texas Constitution.  If this
3-23     Act does not receive the vote necessary for immediate effect, this
3-24     Act takes effect September 1, 2001.