78R977 CBH-D
By: Truitt H.B. No. 164
A BILL TO BE ENTITLED
AN ACT
relating to the rates at which the municipal sales and use tax for
street maintenance may be imposed.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 327.003(b) and (c), Tax Code, are
amended to read as follows:
(b) A municipality may not adopt a tax under this chapter or
increase the rate of the tax if as a result of the adoption of the
tax or the increase in the rate of the tax the combined rate of all
sales and use taxes imposed by the municipality and other political
subdivisions of this state having territory in the municipality
would exceed two percent at any location in the municipality.
(c) If the voters of a municipality approve the adoption of
the tax or the increase in the rate of the tax at an election held on
the same election date on which another political subdivision
adopts a sales and use tax or approves the increase in the rate of
its sales and use tax and as a result the combined rate of all sales
and use taxes imposed by the municipality and other political
subdivisions of this state having territory in the municipality
would exceed two percent at any location in the municipality, the
election to adopt a sales and use tax under this chapter has no
effect.
SECTION 2. Section 327.004, Tax Code, is amended to read as
follows:
Sec. 327.004. TAX RATE. The [rate of the] tax authorized by
this chapter may be imposed at the rate of one-eighth of one percent
or [is] one-fourth of one percent.
SECTION 3. Section 327.005(a), Tax Code, is amended to read
as follows:
(a) The adoption of the tax or the change in the rate of the
tax takes effect on the first day of the first calendar quarter
occurring after the expiration of the first complete calendar
quarter occurring after the date on which the comptroller receives
notice of the results of the election.
SECTION 4. Section 327.006(b), Tax Code, is amended to read
as follows:
(b) At an election to adopt the tax, the ballot shall be
prepared to permit voting for or against the proposition: "The
adoption of a local sales and use tax in (name of municipality) at
the rate of (insert one-eighth of one percent or one-fourth of one
percent)[one-fourth of one percent] to provide revenue for
maintenance and repair of municipal streets."
SECTION 5. Chapter 327, Tax Code, is amended by adding
Section 327.0065 to read as follows:
Sec. 327.0065. RATE CHANGE. (a) A municipality that has
adopted a sales and use tax under this chapter at a rate of
one-fourth of one percent may by ordinance decrease the rate of the
tax to one-eighth of one percent.
(b) A municipality that has adopted a sales and use tax
under this chapter at a rate of one-eighth of one percent may by
ordinance increase the rate of the tax to one-fourth of one percent
if the increase is authorized at an election held in the
municipality.
(c) The ballot for an election to increase the tax shall be
printed to permit voting for or against the proposition: "The
adoption of a local sales and use tax in (name of municipality) at
the rate of one-fourth of one percent to provide revenue for
maintenance and repair of municipal streets."
SECTION 6. Section 327.007(b), Tax Code, is amended to read
as follows:
(b) An election to reauthorize the tax is called and held in
the same manner as an election to adopt the tax under Section
327.006, except the ballot proposition shall be prepared to permit
voting for or against the proposition: "The reauthorization of the
local sales and use tax in (name of municipality) at the rate of
(insert appropriate rate) [one-fourth of one percent] to continue
providing revenue for maintenance and repair of municipal streets."
SECTION 7. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2003.