By: Smith of Tarrant H.B. No. 2972
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the municipal street maintenance tax.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         Amend Chapter 327, Tax Code, as follow:
         SECTION 1.  Section 327.007 REAUTHORIZATION OF TAX.  (a)  
  Except as provided by Section 327.0075 and unless Unless imposition
  of the sales and use tax authorized by this chapter is reauthorized
  as provided by this section or Section 327.0075, the tax expires on:
         (1)  the fourth anniversary of the date the tax originally
  took effect under Section 327.005; or
         (2)  the first day of the first calendar quarter occurring
  after the fourth anniversary of the date the tax was last
  reauthorized under this section.; or
         (3)  the first day of the first calendar quarter occurring
  after the eighth anniversary of the date the tax was last
  reauthorized under section 327.0075.
         (b)  Except as provided by Section 327.0075, an An election
  to reauthorize the tax is called and held in the same manner as an
  election to adopt the tax under Section 327.006, except the ballot
  proposition shall be prepared to permit voting for or against the
  proposition:  "The reauthorization of the local sales and use tax in
  (name of municipality) at the rate of (insert appropriate rate) to
  continue providing revenue for maintenance and repair of municipal
  streets."
         (c)  If an election to reauthorize the tax is not held before
  the tax expires as provided by Subsection (a), or if a majority of
  the votes cast in an election to reauthorize the tax do not favor
  reauthorization, the municipality may not call an election on the
  question of authorizing a new tax under this chapter before the
  first anniversary of the date on which the tax expired.
         (d)  Not later than the 10th day after the date the
  municipality determines that the tax will expire as provided by
  Subsection (a), the municipality shall notify the comptroller of
  the scheduled expiration.  The comptroller may delay the scheduled
  expiration date if the comptroller notifies the municipality that
  more time is required.  The comptroller must provide a new
  expiration date that is not later than the last day of the first
  calendar quarter occurring after the notification to the
  comptroller.
         SECTION 2.  Section 327.0075.  REAUTHORIZATION OF TAX FOR
  CERTAIN MUNICIPALITIES.  (a)  This section only applies to a
  municipality which:
         (1)  has already held at least two elections authorized by
  this Chapter, and
         (2)  at least 66 percent of the voters in the last two
  consecutive elections authorized by this Chapter approved of the
  tax.
         (b)  A municipality to which this section applies may, by
  ordinance, elect to call a reauthorization election held in the
  same manner as an election to adopt the tax under Section 327.006,
  except the ballot proposition shall be prepared to permit voting
  for or against the proposition:  "The reauthorization of the local
  sales and use tax for eight years in (name of municipality) at the
  rate of (insert appropriate rate) to continue providing revenue for
  maintenance and repair of municipal streets."
         SECTION 3.  Section 327.008, Tax Code, is amended to read as
  follow:
         Sec. 327.008.  USE OF TAX REVENUE.  Revenue from the tax
  imposed under this chapter may be used only to maintain and repair
  municipal streets and sidewalks existing on the date of the
  election to adopt the tax.
         SECTION 4.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2011.