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.