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A BILL TO BE ENTITLED
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AN ACT
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relating to the substitution of a county sales and use tax for all |
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or a portion of property taxes imposed by certain counties; |
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authorizing the imposition of a tax. |
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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 328 to read as follows: |
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CHAPTER 328. SALES AND USE TAX FOR PROPERTY TAX RELIEF IN CERTAIN |
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COUNTIES |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 328.0001. APPLICABILITY OF CHAPTER. This chapter |
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applies only to a county with a population of 2.1 million or more |
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that contains at least two municipalities, each of which has a |
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population of 350,000 or more. |
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Sec. 328.0002. APPLICABILITY OF OTHER LAW. (a) Except as |
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otherwise provided by this chapter, Chapter 323 applies to the 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. |
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(b) The following provisions do not apply to the tax |
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authorized by this chapter: |
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(1) Section 323.101; and |
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(2) Subchapter E, Chapter 323, and the other |
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provisions of Chapter 323 relating to an election. |
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Sec. 328.0003. EFFECT ON COMBINED LOCAL TAX RATE. The rate |
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of a county sales and use tax imposed under this chapter may not be |
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considered in determining the combined or overlapping rate in any |
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area of local sales and use taxes under this subtitle or another |
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law. |
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SUBCHAPTER B. IMPOSITION OF TAX |
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Sec. 328.0051. TAX AUTHORIZED. A county to which this |
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chapter applies may adopt or abolish the sales and use tax |
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authorized by this chapter at an election held in the county. |
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Sec. 328.0052. TAX RATE. The rate of the tax authorized by |
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this chapter is one percent. |
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Sec. 328.0053. SALES AND USE TAX EFFECTIVE DATE. The |
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adoption or abolition of the tax authorized by this chapter takes |
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effect on the next January 1 that is at least six months after the |
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date the comptroller receives notice of the results of the election |
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from the county. |
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SUBCHAPTER C. TAX ELECTION PROCEDURES |
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Sec. 328.0101. CALLING ELECTION. An election authorized by |
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this chapter is called by the adoption of an order by the |
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commissioners court. |
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Sec. 328.0102. 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. 328.0103. BALLOT. (a) At an election to adopt the |
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tax, the ballot shall be prepared to permit voting for or against |
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the proposition: "The adoption of a local sales and use tax in |
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(name of county) at the rate of one percent to reduce the county |
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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 percent sales and use tax in (name of county) |
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used to reduce the county property tax rate." |
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SUBCHAPTER D. USE OF TAX REVENUE |
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Sec. 328.0151. USE OF REVENUE. Any amount derived by a |
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county from the sales and use tax under this chapter is additional |
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sales and use tax revenue for purposes of Section 26.041. |
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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); |
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(B) a county under Chapter 323 or 328; or |
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(C) a hospital district, other than a hospital |
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district: |
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(i) created on or after September 1, 2001, |
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that: |
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(a) imposes the sales and use tax |
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under Subchapter I, Chapter 286, Health and Safety Code; or |
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(b) imposes the sales and use tax |
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under Subchapter L, Chapter 285, Health and Safety Code; or |
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(ii) that imposes the sales and use tax |
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under Subchapter G, Chapter 1061, Special District Local Laws 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) [of this |
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code], or a county that imposes a sales and use tax under Chapter |
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323 or 328 [of this code], the tax bill shall indicate the amount of |
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additional ad valorem taxes, if any, that would have been imposed on |
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the property if additional ad valorem taxes had been imposed in an |
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amount equal to the amount of revenue estimated to be collected from |
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the additional municipal [city] sales and use tax or from the county |
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sales and use tax, as applicable, for the year determined as |
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provided by Section 26.041 [of this code]. |
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SECTION 4. Sections 26.012(1) and 31.01(i), Tax Code, as |
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amended by this Act, apply only to ad valorem taxes that are imposed |
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for an ad valorem tax year that begins on or after January 1, 2024. |
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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, 2023. |
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(b) Sections 26.012(1) and 31.01(i), Tax Code, as amended by |
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this Act, take effect January 1, 2024. |