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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 imposed by municipalities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 334.082(d), Local Government Code, is |
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amended to read as follows: |
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(d) The tax imposed by this subchapter is in addition to a |
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tax imposed under other law, including Chapters 321 and 323, Tax |
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Code, and is included in computing a combined sales and use tax rate |
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for purposes of the limitation on the maximum combined sales and use |
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tax rate of political subdivisions. |
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SECTION 2. Section 334.083(a), Local Government Code, is |
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amended to read as follows: |
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(a) The rate of a tax adopted by a county under this |
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subchapter must be one-eighth, one-fourth, three-eighths, or |
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one-half of one percent. The rate of the tax adopted by a |
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municipality may be imposed at any rate that the municipality |
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determines is appropriate and that would not result in a combined |
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rate that exceeds the maximum combined rate prescribed by Section |
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321.101(f), Tax Code. |
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SECTION 3. Section 334.084, Local Government Code, is |
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amended to read as follows: |
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Sec. 334.084. RATE INCREASE. (a) A municipality [or
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county] that has adopted a sales and use tax under this subchapter |
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at any rate, and a county that has adopted a sales and use tax under |
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this subchapter at a rate of less than one-half of one percent, may |
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by ordinance or order increase the rate of the tax if the increase |
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is approved by a majority of the registered voters of that |
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municipality or county voting at an election called and held for |
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that purpose. |
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(b) The county tax may be increased under Subsection (a) in |
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one or more increments of one-eighth of one percent to a maximum of |
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one-half of one percent. The municipal tax may be increased under |
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Subsection (a) to any rate that the municipality determines is |
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appropriate and that would not result in a combined rate that |
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exceeds the maximum combined rate prescribed by Section 321.101(f), |
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Tax Code. |
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(c) The ballot for an election to increase the tax shall be |
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printed to permit voting for or against the proposition: "The |
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adoption of a sales and use tax for the purpose of financing _______ |
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(insert description of venue project) at the rate of _______ [of
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one] percent (insert [one-fourth, three-eighths, or one-half, as] |
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appropriate rate)." |
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SECTION 4. Section 363.055(a), Local Government Code, is |
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amended to read as follows: |
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(a) The proposed rate for the district sales and use tax |
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imposed under Subchapter B, Chapter 321, Tax Code, may be any rate |
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that the municipality determines is appropriate and that would not |
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result in a combined rate that exceeds the maximum combined rate |
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prescribed by Section 321.101(f), Tax Code. The proposed rate for |
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the district sales and use tax imposed under [Subchapter B, Chapter
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321, Tax Code, or] Subchapter B, Chapter 323, Tax Code, may be only: |
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(1) one-eighth of one percent; |
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(2) one-fourth of one percent; |
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(3) three-eighths of one percent; or |
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(4) one-half of one percent. |
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SECTION 5. Section 504.252(b), Local Government Code, is |
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amended to read as follows: |
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(b) The rate of the tax imposed under Subsection (a) may be |
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any rate that the authorizing municipality determines is |
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appropriate and that would not result in a combined rate that |
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exceeds the maximum combined rate prescribed by Section 504.254(a) |
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[must be equal to one-eighth, one-fourth, three-eighths, or
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one-half of one percent]. |
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SECTION 6. Section 504.256, Local Government Code, is |
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amended to read as follows: |
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Sec. 504.256. BALLOT. In an election to adopt the sales and |
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use tax under this chapter, the ballot shall be printed to provide |
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for voting for or against the proposition: "The adoption of a |
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sales and use tax for the promotion and development of new and |
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expanded business enterprises at the rate of __________ [of one] |
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percent" (insert [one-eighth, one-fourth, three-eighths, or
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one-half to be inserted as] appropriate rate). |
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SECTION 7. Section 504.258(c), Local Government Code, is |
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amended to read as follows: |
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(c) The tax rate may be reduced or increased to any rate that |
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the authorizing municipality determines is appropriate and that |
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would not result in a combined rate that exceeds the maximum |
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combined rate prescribed by Section 504.254(a)[:
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[(1)
reduced in one or more increments of one-eighth
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of one percent, to a minimum rate of one-eighth of one percent; or
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[(2)
increased in one or more increments of one-eighth
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of one percent, to a maximum rate of one-half of one percent]. |
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SECTION 8. Section 504.261(b), Local Government Code, is |
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amended to read as follows: |
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(b) In an election to impose, reduce, increase, or abolish |
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the tax under this chapter and the additional sales and use tax, the |
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ballot shall be printed to provide for voting for or against the |
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proposition: "The adoption of a sales and use tax within the |
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municipality for the promotion and development of new and expanded |
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business enterprises at the rate of __________ [of one] percent |
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(insert [one-eighth, one-fourth, three-eighths, or one-half to be
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inserted as] appropriate rate) and the adoption of an additional |
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sales and use tax within the municipality at the rate of __________ |
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[of one] percent to be used to reduce the property tax rate" (insert |
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[one-eighth, one-fourth, three-eighths, or one-half to be inserted
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as] appropriate rate). |
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SECTION 9. Section 505.252(b), Local Government Code, is |
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amended to read as follows: |
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(b) The rate of a tax adopted under this chapter may be any |
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rate that the authorizing municipality determines is appropriate |
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and that would not result in a combined rate that exceeds the |
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maximum combined rate prescribed by Section 505.256(a) [must be
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equal to one-eighth, one-fourth, three-eighths, or one-half of one
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percent]. |
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SECTION 10. Section 505.256(a), Local Government Code, is |
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amended to read as follows: |
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(a) Chapter 321, Tax Code, governs the imposition, |
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computation, administration, collection, and remittance of the |
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sales and use tax, except as inconsistent with this chapter. An |
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authorizing municipality may not adopt a rate under this chapter |
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that, when added to the rates of all other sales and use taxes |
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imposed by the authorizing municipality and other political |
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subdivisions of this state having territory in the authorizing |
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municipality, would result in a combined rate exceeding two percent |
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at any location in the municipality. |
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SECTION 11. Section 505.259, Local Government Code, is |
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amended to read as follows: |
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Sec. 505.259. ELECTION REQUIREMENT FOR CERTAIN |
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MUNICIPALITIES. For a tax under this subchapter at a rate that does |
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not exceed one-half of one percent, the [The] election requirement |
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under Section 505.251 is satisfied and another election is not |
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required if the voters of the authorizing municipality approved the |
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imposition of an additional one-half cent sales and use tax at an |
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election held before March 28, 1991, under an ordinance calling the |
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election that: |
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(1) was published in a newspaper of general |
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circulation in the municipality at least 14 days before the date of |
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the election; and |
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(2) expressly stated that the election was being held |
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in anticipation of the enactment of enabling and implementing |
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legislation without further elections. |
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SECTION 12. Section 321.101(a), Tax Code, is amended to |
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read as follows: |
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(a) A municipality may adopt or repeal a sales and use tax |
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authorized by this chapter, other than the additional municipal |
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sales and use tax, and may reduce or increase the rate of the tax, at |
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an election in which a majority of the qualified voters of the |
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municipality approve the adoption, reduction, increase, or repeal |
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of the tax. |
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SECTION 13. Section 321.102(a), Tax Code, is amended to |
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read as follows: |
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(a) A tax imposed under this chapter, a tax rate increase or |
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decrease adopted under this chapter, or the repeal of a tax |
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abolished under this chapter takes effect on the first day of the |
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first calendar quarter occurring after the expiration of the first |
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complete calendar quarter occurring after the date on which the |
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comptroller receives a notice of the action as required by Section |
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321.405(b). This subsection does not apply to the additional |
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municipal sales and use tax. |
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SECTION 14. Section 321.103, Tax Code, is amended to read as |
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follows: |
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Sec. 321.103. SALES TAX. (a) In a municipality that has |
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adopted the tax authorized by Section 321.101(a), there is imposed |
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a tax on the receipts from the sale at retail of taxable items |
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within the municipality at any [the] rate that the municipality |
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determines is appropriate, that would not result in a combined rate |
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that exceeds the maximum combined rate prescribed by Section |
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321.101(f), and that is approved by the voters. The tax is imposed |
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[of one percent and] at the same rate on the receipts from the sale |
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at retail within the municipality of gas and electricity for |
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residential use. |
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(b) In a municipality that has adopted the additional |
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municipal sales and use tax, the tax is imposed at any [the] rate |
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that the municipality determines is appropriate, that would not |
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result in a combined rate that exceeds the maximum combined rate |
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prescribed by Section 321.101(f), and that is approved by the |
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voters. [The rate, when the tax is adopted, must be equal to either
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one-eighth, one-fourth, three-eighths, or one-half of one percent.
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The rate may be reduced in one or more increments of one-eighth of
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one percent to a minimum of one-eighth of one percent or increased
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in one or more increments of one-eighth of one percent to a maximum
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of one-half of one percent, or the tax may be abolished.] The rate |
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that the municipality adopts is on the receipts from the sale at |
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retail of all taxable items within the municipality and at the same |
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rate on the receipts from the sale at retail within the municipality |
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of gas and electricity for residential use unless the residential |
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use of gas and electricity is exempted from the tax imposed under |
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Section 321.101(a), in which case the residential use of gas and |
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electricity is exempted under this subsection also. |
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SECTION 15. Sections 321.108(b), (c), and (d), Tax Code, |
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are amended to read as follows: |
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(b) A tax adopted for a district under this section for |
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financing the operation of the district may be decreased [in
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increments of one-eighth of one percent] by order of the board of |
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directors of the district. |
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(c) The governing body of the municipality that proposed the |
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creation of the crime control and prevention district may call an |
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election in the district on the question of decreasing the tax rate |
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[in increments of one-eighth of one percent in the district]. At the |
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election, the ballot shall be printed to provide for voting for or |
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against the following proposition: "The decrease of the |
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____________________ Crime Control and Prevention District sales |
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and use tax rate to ____________ percent." |
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(d) The rate of a tax adopted for a district under this |
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section may be increased to any rate [in increments of one-eighth of
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one percent, not to exceed a total tax rate of one-half percent] for |
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financing the operation of the crime control and prevention |
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district[,] by order of the board of directors of the crime control |
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and prevention district if the board determines that the rate is |
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appropriate, would not result in a combined rate that exceeds the |
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maximum combined rate prescribed by Section 321.101(f), and is |
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approved by a majority of the voters voting at an election called by |
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the board and held in the district on the question of increasing the |
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tax rate. At the election, the ballot shall be printed to provide |
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for voting for or against the following proposition: "The increase |
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of the ______________ Crime Control and Prevention District sales |
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and use tax rate to ____________ percent." If there is an increase |
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or decrease under this subsection in the rate of a tax imposed under |
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this section, the new rate takes effect on the first day of the next |
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calendar quarter after the expiration of one calendar quarter after |
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the comptroller receives notice of the increase or |
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decrease. However, if the comptroller notifies the president of |
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the board of directors of the district in writing within 10 days |
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after receipt of the notification that the comptroller requires |
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more time to implement reporting and collection procedures, the |
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comptroller may delay implementation of the rate change for another |
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calendar quarter, and the new rate takes effect on the first day of |
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the next calendar quarter following the elapsed quarter. |
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SECTION 16. Section 321.404, Tax Code, is amended by |
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amending Subsections (a) and (c) and adding Subsection (d) to read |
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as follows: |
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(a) In an election to adopt the tax, the ballot shall be |
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printed to provide for voting for or against the applicable |
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proposition: "A [one percent] sales and use tax is adopted within |
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the city at the rate of _______ percent" (insert appropriate rate) |
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or "The adoption of an additional sales and use tax within the city |
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at the rate of ________ [of one] percent to be used to reduce the |
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property tax rate" (insert [one-eighth, one-fourth, three-eighths,
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or one-half to be inserted as] appropriate rate). |
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(c) In a municipality that does not impose a property tax, |
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the ballot at an election to adopt the additional municipal sales |
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and use tax shall be printed to provide for voting for or against |
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the following proposition: "The adoption of an additional sales |
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and use tax within the city at the rate of ________ [of one] |
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percent" (insert [one-eighth, one-fourth, three-eighths, or
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one-half to be inserted as] appropriate rate). |
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(d) In an election to reduce or increase the tax, the ballot |
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shall be printed to provide for 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) at the rate of ______ (insert appropriate rate)." |
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SECTION 17. Section 321.405(a), Tax Code, is amended to |
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read as follows: |
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(a) Within 10 days after an election in which the voters |
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approve of the adoption, change in rate, or abolition of a tax |
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authorized by this chapter, the governing body of the municipality |
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shall by resolution or ordinance entered in its minutes of |
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proceedings, declare the results of the election. A resolution or |
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ordinance under this section must include statements showing: |
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(1) the date of the election; |
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(2) the proposition on which the vote was held; |
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(3) the total number of votes cast for and against the |
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proposition; and |
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(4) the number of votes by which the proposition was |
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approved. |
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SECTION 18. Section 327.004, Tax Code, is amended to read as |
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follows: |
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Sec. 327.004. TAX RATE. The tax authorized by this chapter |
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may be imposed at any rate that the municipality determines is |
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appropriate and that would not result in a combined rate that |
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exceeds the maximum combined rate prescribed by Section 327.003(b) |
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[the rate of one-eighth of one percent or one-fourth of one
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percent]. |
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SECTION 19. Section 327.006(b), Tax Code, is amended to |
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read as follows: |
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(b) At an election to adopt the tax, the ballot shall be |
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prepared to permit voting for or against the proposition: "The |
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adoption of a local sales and use tax in (name of municipality) at |
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the rate of (insert appropriate rate [one-eighth of one percent or
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one-fourth of one percent]) to provide revenue for maintenance and |
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repair of municipal streets." |
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SECTION 20. Section 327.0065, Tax Code, is amended to read |
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as follows: |
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Sec. 327.0065. RATE CHANGE. (a) A municipality that has |
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adopted a sales and use tax under this chapter [at a rate of
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one-fourth of one percent] may by ordinance decrease the rate of the |
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tax [to one-eighth of one percent]. |
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(b) A municipality that has adopted a sales and use tax |
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under this chapter [at a rate of one-eighth of one percent] may by |
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ordinance increase the rate of the tax to any rate that the |
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municipality determines is appropriate and that would not result in |
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a combined rate that exceeds the maximum combined rate prescribed |
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by Section 327.003(b) [to one-fourth of one percent] if the |
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increase is authorized at an election held in the municipality. |
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(c) The ballot for an election to increase the tax shall be |
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printed to permit voting for or against the proposition: "The |
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adoption of a local sales and use tax in (name of municipality) at |
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the rate of (insert appropriate rate) [one-fourth of one percent] |
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to provide revenue for maintenance and repair of municipal |
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streets." |
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SECTION 21. Section 327.007(a), Tax Code, is amended to |
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read as follows: |
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(a) Unless imposition of the sales and use tax authorized by |
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this chapter is reauthorized as provided by this section, the tax |
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expires on: |
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(1) the eighth [fourth] anniversary of the date the |
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tax originally took effect under Section 327.005; or |
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(2) the first day of the first calendar quarter |
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occurring after the eighth [fourth] anniversary of the date the tax |
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was last reauthorized under this section. |
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SECTION 22. (a) The changes in law made by this Act to |
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Sections 334.084(c), 504.256, and 504.261(b), Local Government |
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Code, and Sections 321.404, 327.006(b), and 327.0065(c), Tax Code, |
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apply only to ballot language for an election ordered on or after |
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the effective date of this Act. Ballot language for an election |
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ordered before the effective date of this Act is governed by the law |
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in effect when the election was ordered. |
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(b) The change in law made by this Act to Section |
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327.007(a), Tax Code, applies only to the expiration of a sales and |
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use tax under Chapter 327, Tax Code, that is adopted or reauthorized |
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on or after the effective date of this Act. The expiration of a |
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sales and use tax that was adopted or last reauthorized before the |
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effective date of this Act is governed by the law in effect |
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immediately before the effective date of this Act, and the former |
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law is continued in effect for that purpose. |
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SECTION 23. This Act takes effect September 1, 2013. |