By: Raymond, Bolton H.B. No. 3870
 
 
 
 
A BILL TO BE ENTITLED
AN ACT
relating to sales and use taxes in emergency services districts.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 775.0751, Health and Safety Code, is amended to
read as follows:
       (a)  A district may adopt a sales and use tax, change the rate
of its sales and use tax, or abolish its sales and use tax at an
election held as provided by Section 775.0752.  The district may
impose the tax at a rate from one-eighth of one percent to two
percent in increments of one-eighth of one percent.  Revenue from
the tax may be used for any purpose for which ad valorem tax revenue
of the district may be used.
       (b)  Chapter 323, Tax Code, applies to the application,
collection, and administration of the tax imposed under this
section.  The comptroller may make rules for the collection and
administration of this tax in the same manner as for a tax imposed
under Chapter 323, Tax Code.  Where a county and a hospital district
both impose a sales and use tax, the comptroller may by rule provide
for proportionate allocation of sales and use tax collections
between a county and a hospital district on the basis of the period
of time each tax is imposed and the relative tax rates.
       (c)  Except as provided in subsection (d), a [A] district may
not adopt a tax under this section or increase the rate of the tax if
as a result of the adoption of the tax or the tax increase the
combined rate of all sales and use taxes imposed by the district and
other political subdivisions of this state having territory in the
district would exceed two percent at any location in the district.
       (d)  A district that would otherwise be precluded from
adopting a sales and use tax under subsection (c), may nonetheless
adopt a sales and use tax, change the rate of its sales and use tax,
or abolish its sales and use tax at an election held as provided by
Section 775.0752, provided that the district in the order calling
the election excludes from the election and the applicability of
the proposed sales and use tax any territory in the district where
the sales and use tax is then at two percent.
       (e)  If the voters of a district approve the adoption of the
tax or an increase in the tax rate at an election held on the same
election date on which another political subdivision of this state
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 district and other political
subdivisions of this state having territory in the portion of the 
district where the district sales and use tax would otherwise be
applicable would exceed two percent at any location in the
district, the election to adopt a sales and use tax or to increase
the rate of the sales and use tax in the district under this
subchapter has no effect.
SECTION 2.  This Act takes effect September 1, 2007.