| TO: | Honorable Frank Madla, Chair, Senate Committee on Intergovernmental Relations |
| FROM: | John S. O'Brien, Deputy Director, Legislative Budget Board |
| IN RE: | SB1463 by Seliger (Relating to combined municipal sales tax ballot propositions.), As Introduced |
The bill would amend Subtitle C, Chapter 321, Tax Code to allow a municipality to combine a ballot proposition to lower or repeal any dedicated or special purpose municipal sales tax, including sales tax for property tax relief, and by the same proposition raise or adopt any other dedicated special purpose municipal sales tax. A combined sales tax proposition would contain substantially the same language as required for the lowering, repealing, raising, or adopting of each tax as appropriate.
If a combined sales tax proposition is defeated, the bill provides that no effect would occur on either the sales tax proposition being lowered or repealed by the proposition or the sales tax to be raised or adopted by the proposition.
The bill would take effect September 1, 2005.
Municipalities, counties, and special purpose districts wishing to adopt, increase, reduce, or repeal local sales taxes must follow mandated ballot language provided for each sales tax when holding an election. Municipalities are afforded a variety of additional sales taxes they may adopt, but only in two cases may they adopt, increase, or reduce two additional sales taxes in a single ballot proposition. Found in Article 5190.6 Sections 4A(p) and 4B(e), Vernons Texas Civil Statutes are two possible scenarios, the first scenario involves the 4A sales tax and the sales tax for property tax reduction, and the second scenario involves a 4A and 4B sales tax.
The bill would allow any combination of additional local sales taxes to be paired together as a single ballot proposition. Any ballot proposition that has occurred before the effective date of this legislation would not be affected.
| Source Agencies: | 304 Comptroller of Public Accounts
|
| LBB Staff: | JOB, DLBa, WP, SM, KJG
|