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A BILL TO BE ENTITLED
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AN ACT
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relating to the maximum rate of certain local sales and use taxes. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 504.254(a), Local Government Code, as |
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effective April 1, 2009, is amended to read as follows: |
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(a) An authorizing municipality may not adopt a rate under |
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this chapter that, when added to the rates of all other sales and |
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use taxes imposed by the authorizing municipality and other |
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political subdivisions of this state having territory in the |
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authorizing municipality, would result in a combined rate exceeding |
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three [two] percent. |
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SECTION 2. Section 321.101(f), Tax Code, is amended to read |
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as follows: |
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(f) A municipality may not adopt or increase a sales and use |
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tax or an additional sales and use tax under this section if as a |
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result of the adoption or increase of the tax the combined rate of |
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all sales and use taxes imposed by the municipality and other |
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political subdivisions of this state having territory in the |
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municipality would exceed three [two] percent at any location in |
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the municipality. |
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SECTION 3. Sections 321.102(e) and (g), Tax Code, are |
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amended to read as follows: |
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(e) If as a result of the imposition or increase in a sales |
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and use tax by a municipality in which there is located all or part |
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of a local governmental entity that has adopted a sales and use tax |
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or as a result of the annexation by a municipality of all or part of |
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the territory in a local governmental entity that has adopted a |
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sales and use tax the overlapping local sales and use taxes in the |
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area will exceed three [two] percent, the entity's sales and use |
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tax is automatically reduced in that area to a rate that when added |
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to the combined rate of local sales and use taxes will equal three |
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[two] percent. |
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(g) Subsections (e) and (f) do not apply if and during any |
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period in which a local governmental entity has outstanding |
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indebtedness or obligations that are payable wholly or partly from |
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the sales and use tax revenue of the entity. A municipality may not |
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implement the imposition or increase of the sales and use tax as a |
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result of the circumstances described by Subsection (e) if, as a |
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result of the implementation of that imposition or increase, the |
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combined rate of all sales and use taxes imposed by the |
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municipality, the local governmental entity, and any other |
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political subdivisions having territory in the district would |
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exceed three [two] percent at any location in the municipality. |
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SECTION 4. Sections 323.101(d) and (e), Tax Code, are |
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amended to read as follows: |
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(d) A county may not adopt a sales and use tax under this |
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section if as a result of the adoption of the tax the combined rate |
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of all sales and use taxes imposed by the county and other political |
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subdivisions of this state having territory in the county would |
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exceed three [two] percent at any location in the county. |
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(e) If the voters of a county approve the adoption of a sales |
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and use tax at an election held on the same election date on which a |
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municipality having territory in the county adopts a sales and use |
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tax or an additional sales and use tax and as a result the combined |
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rate of all sales and use taxes imposed by the county and other |
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political subdivisions of this state having territory in the county |
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would exceed three [two] percent at any location in the county, the |
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election to adopt a county sales and use tax has no effect. |
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SECTION 5. Section 8(f), Article 6550c-3, Revised Statutes, |
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is amended to read as follows: |
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(f) A district may not adopt a sales and use tax rate, |
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including a rate increase, that when combined with the rates of all |
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sales and use taxes imposed by other political subdivisions of the |
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state having territory in the district exceeds three [two] percent |
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in any location in the district. |
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SECTION 6. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2009. |