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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of the voters of a municipality or a |
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county to adopt a one-quarter cent sales and use tax in the |
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municipality or county to provide property tax relief. |
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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 326 to read as follows: |
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CHAPTER 326. MUNICIPAL AND COUNTY SALES AND USE TAX FOR PROPERTY |
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TAX RELIEF |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 326.001. APPLICABLE LAW. Except as otherwise provided |
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by this chapter: |
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(1) Chapter 321 applies to the municipal tax |
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authorized by this chapter in the same manner as that chapter |
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applies to the tax authorized by that chapter; and |
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(2) Chapter 323 applies to the county tax authorized |
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by this chapter in the same manner as that chapter applies to the |
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tax authorized by that chapter. |
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Sec. 326.002. EFFECT ON COMBINED LOCAL TAX RATE. |
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(a) Sections 321.101 and 323.101 do not apply to the municipal or |
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county tax authorized by this chapter. |
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(b) The rate of a municipal or county sales and use tax |
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imposed under this chapter may not be considered in determining the |
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combined or overlapping rate of local sales and use taxes in any |
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area under this subtitle or another law, including: |
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(1) the Health and Safety Code; |
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(2) the Local Government Code; |
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(3) the Special District Local Laws Code; or |
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(4) the Transportation Code. |
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[Sections 326.003-326.050 reserved for expansion] |
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SUBCHAPTER B. IMPOSITION OF TAX |
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Sec. 326.051. TAX AUTHORIZED. (a) A municipality or a |
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county may adopt or abolish the sales and use tax authorized by this |
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chapter at an election held in the municipality or county. |
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(b) The adoption of the tax authorized by this chapter by |
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one political subdivision does not affect the authority of another |
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political subdivision that has overlapping boundaries to also adopt |
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the tax authorized by this chapter. |
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Sec. 326.052. TAX RATE. The rate of the tax authorized by |
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this chapter is one-fourth of one percent. |
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Sec. 326.053. SALES AND USE TAX EFFECTIVE DATE. (a) The |
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adoption or abolition of the tax takes effect on the first day of |
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the first calendar quarter occurring after the expiration of the |
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first complete calendar quarter occurring after the date on which |
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the comptroller receives a notice of the results of the election |
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from the municipality or county. |
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(b) If the comptroller determines that an effective date |
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provided by Subsection (a) will occur before the comptroller can |
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reasonably take the action required to begin collecting the tax or |
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to implement the abolition of the tax, the effective date may be |
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extended by the comptroller until the first day of the next |
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succeeding calendar quarter. |
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[Sections 326.054-326.100 reserved for expansion] |
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SUBCHAPTER C. TAX ELECTION PROCEDURES |
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Sec. 326.101. CALLING ELECTION. (a) An election |
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authorized by this chapter in a municipality is called by the |
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adoption of an ordinance by the governing body of the municipality. |
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(b) An election authorized by this chapter in a county is |
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called by the adoption of an order by the commissioners court of the |
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county. |
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Sec. 326.102. ELECTION DATE. An election under this |
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chapter must be held on the next uniform election date that occurs |
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after the date of the election order and that allows sufficient time |
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to comply with the requirements of other law. |
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Sec. 326.103. BALLOT. (a) At an election to adopt the tax, |
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the ballot shall be prepared to permit voting for or against the |
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proposition: "The adoption of a local sales and use tax in (name of |
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municipality or county) at the rate of one-fourth of one percent to |
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reduce the (municipal or county) property tax rate." |
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(b) At an election to abolish the tax, the ballot shall be |
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prepared to permit voting for or against the proposition: "The |
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abolition of the one-fourth of one percent sales and use tax in |
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(name of municipality or county) used to reduce the (municipal or |
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county) property tax rate." |
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[Sections 326.104-326.150 reserved for expansion] |
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SUBCHAPTER D. USE OF TAX REVENUE |
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Sec. 326.151. USE OF REVENUE. Any amount derived by a |
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municipality or county from the sales and use tax under this chapter |
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is additional sales and use tax revenue for purposes of Section |
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26.041. |
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Sec. 326.152. CALCULATION OF MUNICIPAL OR COUNTY ROLLBACK |
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TAX RATE. For a municipality or county in which the voters have |
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approved the imposition of the sales and use tax under this chapter, |
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for an ad valorem tax year that begins on or after the date the sales |
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and use tax takes effect, in the formula for calculating the |
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rollback tax rate of the municipality or county, the officer or |
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employee designated by the governing body of the municipality or |
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the commissioners court of the county to make the calculation shall |
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substitute 1.05 for 1.08. |
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SECTION 2. Section 26.012(1), Tax Code, is amended to read |
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as follows: |
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(1) "Additional sales and use tax" means an additional |
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sales and use tax imposed by: |
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(A) a municipality [city] under Section |
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321.101(b) or Chapter 326; |
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(B) a county under Chapter 323 or 326; or |
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(C) a hospital district, other than a hospital |
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district created on or after September 1, 2001, that: |
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(i) imposes the sales and use tax under |
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Subchapter I, Chapter 286, Health and Safety Code; or |
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(ii) imposes the sales and use tax under |
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Subchapter L, Chapter 285, Health and Safety Code. |
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SECTION 3. Section 31.01(i), Tax Code, is amended to read as |
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follows: |
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(i) For a municipality [city or town] that imposes an |
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additional sales and use tax under Section 321.101(b) or Chapter |
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326 [of this code], or a county that imposes a sales and use tax |
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under Chapter 323 or 326 [of this code], the tax bill shall indicate |
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the amount of additional ad valorem taxes, if any, that would have |
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been imposed on the property if additional ad valorem taxes had been |
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imposed in an amount equal to the amount of revenue estimated to be |
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collected from the additional municipal [city] sales and use tax or |
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from the county sales and use tax, as applicable, for the year |
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determined as provided by Section 26.041 [of this code]. |
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SECTION 4. Sections 2 and 3 of this Act apply only to ad |
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valorem taxes that are imposed for an ad valorem tax year that |
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begins on or after January 1, 2010. |
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SECTION 5. (a) Except as provided by Subsection (b) of this |
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section, this Act takes effect September 1, 2009. |
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(b) Sections 2 and 3 of this Act take effect January 1, 2010. |