| 1 | 1 | | 81R2075 CBH-D |
|---|
| 2 | 2 | | By: Martinez H.B. No. 847 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | A BILL TO BE ENTITLED |
|---|
| 6 | 6 | | AN ACT |
|---|
| 7 | 7 | | relating to the maximum rate of certain local sales and use taxes. |
|---|
| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 9 | 9 | | SECTION 1. Section 504.254(a), Local Government Code, as |
|---|
| 10 | 10 | | effective April 1, 2009, is amended to read as follows: |
|---|
| 11 | 11 | | (a) An authorizing municipality may not adopt a rate under |
|---|
| 12 | 12 | | this chapter that, when added to the rates of all other sales and |
|---|
| 13 | 13 | | use taxes imposed by the authorizing municipality and other |
|---|
| 14 | 14 | | political subdivisions of this state having territory in the |
|---|
| 15 | 15 | | authorizing municipality, would result in a combined rate exceeding |
|---|
| 16 | 16 | | three [two] percent. |
|---|
| 17 | 17 | | SECTION 2. Section 321.101(f), Tax Code, is amended to read |
|---|
| 18 | 18 | | as follows: |
|---|
| 19 | 19 | | (f) A municipality may not adopt or increase a sales and use |
|---|
| 20 | 20 | | tax or an additional sales and use tax under this section if as a |
|---|
| 21 | 21 | | result of the adoption or increase of the tax the combined rate of |
|---|
| 22 | 22 | | all sales and use taxes imposed by the municipality and other |
|---|
| 23 | 23 | | political subdivisions of this state having territory in the |
|---|
| 24 | 24 | | municipality would exceed three [two] percent at any location in |
|---|
| 25 | 25 | | the municipality. |
|---|
| 26 | 26 | | SECTION 3. Sections 321.102(e) and (g), Tax Code, are |
|---|
| 27 | 27 | | amended to read as follows: |
|---|
| 28 | 28 | | (e) If as a result of the imposition or increase in a sales |
|---|
| 29 | 29 | | and use tax by a municipality in which there is located all or part |
|---|
| 30 | 30 | | of a local governmental entity that has adopted a sales and use tax |
|---|
| 31 | 31 | | or as a result of the annexation by a municipality of all or part of |
|---|
| 32 | 32 | | the territory in a local governmental entity that has adopted a |
|---|
| 33 | 33 | | sales and use tax the overlapping local sales and use taxes in the |
|---|
| 34 | 34 | | area will exceed three [two] percent, the entity's sales and use |
|---|
| 35 | 35 | | tax is automatically reduced in that area to a rate that when added |
|---|
| 36 | 36 | | to the combined rate of local sales and use taxes will equal three |
|---|
| 37 | 37 | | [two] percent. |
|---|
| 38 | 38 | | (g) Subsections (e) and (f) do not apply if and during any |
|---|
| 39 | 39 | | period in which a local governmental entity has outstanding |
|---|
| 40 | 40 | | indebtedness or obligations that are payable wholly or partly from |
|---|
| 41 | 41 | | the sales and use tax revenue of the entity. A municipality may not |
|---|
| 42 | 42 | | implement the imposition or increase of the sales and use tax as a |
|---|
| 43 | 43 | | result of the circumstances described by Subsection (e) if, as a |
|---|
| 44 | 44 | | result of the implementation of that imposition or increase, the |
|---|
| 45 | 45 | | combined rate of all sales and use taxes imposed by the |
|---|
| 46 | 46 | | municipality, the local governmental entity, and any other |
|---|
| 47 | 47 | | political subdivisions having territory in the district would |
|---|
| 48 | 48 | | exceed three [two] percent at any location in the municipality. |
|---|
| 49 | 49 | | SECTION 4. Sections 323.101(d) and (e), Tax Code, are |
|---|
| 50 | 50 | | amended to read as follows: |
|---|
| 51 | 51 | | (d) A county may not adopt a sales and use tax under this |
|---|
| 52 | 52 | | section if as a result of the adoption of the tax the combined rate |
|---|
| 53 | 53 | | of all sales and use taxes imposed by the county and other political |
|---|
| 54 | 54 | | subdivisions of this state having territory in the county would |
|---|
| 55 | 55 | | exceed three [two] percent at any location in the county. |
|---|
| 56 | 56 | | (e) If the voters of a county approve the adoption of a sales |
|---|
| 57 | 57 | | and use tax at an election held on the same election date on which a |
|---|
| 58 | 58 | | municipality having territory in the county adopts a sales and use |
|---|
| 59 | 59 | | tax or an additional sales and use tax and as a result the combined |
|---|
| 60 | 60 | | rate of all sales and use taxes imposed by the county and other |
|---|
| 61 | 61 | | political subdivisions of this state having territory in the county |
|---|
| 62 | 62 | | would exceed three [two] percent at any location in the county, the |
|---|
| 63 | 63 | | election to adopt a county sales and use tax has no effect. |
|---|
| 64 | 64 | | SECTION 5. Section 8(f), Article 6550c-3, Revised Statutes, |
|---|
| 65 | 65 | | is amended to read as follows: |
|---|
| 66 | 66 | | (f) A district may not adopt a sales and use tax rate, |
|---|
| 67 | 67 | | including a rate increase, that when combined with the rates of all |
|---|
| 68 | 68 | | sales and use taxes imposed by other political subdivisions of the |
|---|
| 69 | 69 | | state having territory in the district exceeds three [two] percent |
|---|
| 70 | 70 | | in any location in the district. |
|---|
| 71 | 71 | | SECTION 6. This Act takes effect immediately if it receives |
|---|
| 72 | 72 | | a vote of two-thirds of all the members elected to each house, as |
|---|
| 73 | 73 | | provided by Section 39, Article III, Texas Constitution. If this |
|---|
| 74 | 74 | | Act does not receive the vote necessary for immediate effect, this |
|---|
| 75 | 75 | | Act takes effect September 1, 2009. |
|---|