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A BILL TO BE ENTITLED
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AN ACT
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relating to sales and use taxes by certain municipalities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle C, Title 3, Tax Code, is amended by |
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adding Chapter 329 to read as follows: |
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CHAPTER 329. SALES AND USE TAXES BY CERTAIN MUNICIPALITIES |
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Sec. 329.001. DEFINITION. In this chapter, "transit sales |
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and use tax" means a sales and use tax imposed for the support of |
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transportation services authorized under the Transportation Code. |
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Sec. 329.002. APPLICABILITY. This chapter applies only to |
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a municipality located wholly or partly in: |
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(1) one or both of two contiguous counties, each of |
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which has a population of one million or more; or |
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(2) a county contiguous to one of the counties |
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described in Subdivision (1). |
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Sec. 329.003. TRANSIT SALES AND USE TAX NOT COUNTED IN |
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COMBINED LOCAL TAX RATE. Notwithstanding any other law, the rate of |
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a transit sales and use tax imposed within the territory of a |
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municipality to which this chapter applies may not be considered in |
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determining the combined or overlapping rate of local sales and use |
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taxes in the municipality for any purpose other than as provided in |
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Section 329.004. |
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Sec. 329.004. LIMITATION FOR TRANSIT SALES AND USE TAXES. |
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Notwithstanding any other law, the rate of all transit sales and |
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use taxes imposed within the territory of a municipality to which |
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this chapter applies may not exceed one percent at any location in |
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the municipality. |
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SECTION 2. Sections 321.101(b) and (e), Tax Code, are |
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amended to read as follows: |
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(b) A municipality that is not disqualified may, by a |
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majority vote of the qualified voters of the municipality voting at |
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an election held for that purpose, adopt an additional sales and use |
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tax for the benefit of the municipality in accordance with this |
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chapter. A municipality, other than a municipality to which |
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Chapter 329 applies, is disqualified from adopting the additional |
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sales and use tax if the municipality: |
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(1) is included within the boundaries of a rapid |
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transit authority created under Chapter 451, Transportation Code; |
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(2) is included within the boundaries of a regional |
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transportation authority created under Chapter 452, Transportation |
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Code, by a principal municipality having a population of less than |
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800,000, unless the municipality has a population of 400,000 or |
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more and is located in more than one county; |
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(3) is wholly or partly located in a county that |
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contains territory within the boundaries of a regional |
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transportation authority created under Chapter 452, Transportation |
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Code, by a principal municipality having a population in excess of |
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800,000, unless: |
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(A) the municipality is a contiguous |
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municipality; or |
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(B) the municipality is not included within the |
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boundaries of the authority and is located wholly or partly in a |
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county in which fewer than 250 persons are residents of both the |
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county and the authority according to the most recent federal |
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census; or |
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(C) the municipality is not and on January 1, |
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1993, was not included within the boundaries of the authority; or |
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(4) imposes a tax authorized by Chapter 453, |
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Transportation Code. |
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(e) An authority created under Chapter 451 or 452, |
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Transportation Code, is prohibited from imposing the tax provided |
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for by those chapters if within the boundaries of the authority |
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there is a municipality, other than a municipality to which Chapter |
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329 applies, that has adopted the additional sales and use tax |
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provided for by this section. |
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SECTION 3. This Act takes effect October 1, 2007. |