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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 in emergency services districts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 775.0751, Health and Safety Code, is amended to |
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read as follows: |
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(a) A district may adopt a sales and use tax, change the rate |
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of its sales and use tax, or abolish its sales and use tax at an |
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election held as provided by Section 775.0752. The district may |
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impose the tax at a rate from one-eighth of one percent to two |
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percent in increments of one-eighth of one percent. Revenue from |
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the tax may be used for any purpose for which ad valorem tax revenue |
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of the district may be used. |
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(b) Chapter 323, Tax Code, applies to the application, |
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collection, and administration of the tax imposed under this |
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section. The comptroller may make rules for the collection and |
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administration of this tax in the same manner as for a tax imposed |
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under Chapter 323, Tax Code. Where a county and a hospital district |
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both impose a sales and use tax, the comptroller may by rule provide |
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for proportionate allocation of sales and use tax collections |
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between a county and a hospital district on the basis of the period |
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of time each tax is imposed and the relative tax rates. |
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(c) Except as provided in subsection (d), a [A] district may |
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not adopt a tax under this section or increase the rate of the tax if |
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as a result of the adoption of the tax or the tax increase the |
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combined rate of all sales and use taxes imposed by the district and |
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other political subdivisions of this state having territory in the |
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district would exceed two percent at any location in the district. |
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(d) A district that would otherwise be precluded from |
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adopting a sales and use tax under subsection (c), may nonetheless |
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adopt a sales and use tax, change the rate of its sales and use tax, |
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or abolish its sales and use tax at an election held as provided by |
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Section 775.0752, provided that the district in the order calling |
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the election excludes from the election and the applicability of |
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the proposed sales and use tax any territory in the district where |
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the sales and use tax is then at two percent. |
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(e) If the voters of a district approve the adoption of the |
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tax or an increase in the tax rate at an election held on the same |
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election date on which another political subdivision of this state |
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adopts a sales and use tax or approves the increase in the rate of |
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its sales and use tax and as a result the combined rate of all sales |
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and use taxes imposed by the district and other political |
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subdivisions of this state having territory in the portion of the |
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district where the district sales and use tax would otherwise be |
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applicable would exceed two percent at any location in the |
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district, the election to adopt a sales and use tax or to increase |
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the rate of the sales and use tax in the district under this |
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subchapter has no effect. |
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SECTION 2. This Act takes effect September 1, 2007. |