TO: | Honorable Frank Madla, Chair, Senate Committee on Intergovernmental Relations |
FROM: | John Keel, Director, Legislative Budget Board |
IN RE: | HB164 by Truitt (Relating to the rates at which the municipal sales and use tax for street maintenance may be imposed.), As Engrossed |
The bill would amend Chapter 327 of the Tax Code, relating to municipal sales and use tax for street maintenance.
Under current law, municipal sales and use tax for street maintenance may be imposed only at the rate of 0.25 percent. The bill would allow a tax rate of 0.125 percent to be adopted for a municipal sales and use tax for street maintenance. In addition, it would allow a subsequent increase from 0.125 percent to 0.25 percent, and, further, it would allow a municipality that had adopted the tax at the rate of 0.25 percent to decrease the rate to 0.125 percent. In no case, however, could the combined local tax rate exceed 2 percent.
The bill would take effect immediately upon enactment, assuming that it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2003.
Source Agencies: | 304 Comptroller of Public Accounts
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LBB Staff: | JK, DLBa, SD, WP, SM, KG
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