81R2075 CBH-D
By: Martinez H.B. No. 847
A BILL TO BE ENTITLED
AN ACT
relating to the maximum rate of certain local sales and use taxes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 504.254(a), Local Government Code, as
effective April 1, 2009, is amended to read as follows:
(a) An authorizing municipality may not adopt a rate under
this chapter that, when added to the rates of all other sales and
use taxes imposed by the authorizing municipality and other
political subdivisions of this state having territory in the
authorizing municipality, would result in a combined rate exceeding
three [two] percent.
SECTION 2. Section 321.101(f), Tax Code, is amended to read
as follows:
(f) A municipality may not adopt or increase a sales and use
tax or an additional sales and use tax under this section if as a
result of the adoption or increase of the tax the combined rate of
all sales and use taxes imposed by the municipality and other
political subdivisions of this state having territory in the
municipality would exceed three [two] percent at any location in
the municipality.
SECTION 3. Sections 321.102(e) and (g), Tax Code, are
amended to read as follows:
(e) If as a result of the imposition or increase in a sales
and use tax by a municipality in which there is located all or part
of a local governmental entity that has adopted a sales and use tax
or as a result of the annexation by a municipality of all or part of
the territory in a local governmental entity that has adopted a
sales and use tax the overlapping local sales and use taxes in the
area will exceed three [two] percent, the entity's sales and use
tax is automatically reduced in that area to a rate that when added
to the combined rate of local sales and use taxes will equal three
[two] percent.
(g) Subsections (e) and (f) do not apply if and during any
period in which a local governmental entity has outstanding
indebtedness or obligations that are payable wholly or partly from
the sales and use tax revenue of the entity. A municipality may not
implement the imposition or increase of the sales and use tax as a
result of the circumstances described by Subsection (e) if, as a
result of the implementation of that imposition or increase, the
combined rate of all sales and use taxes imposed by the
municipality, the local governmental entity, and any other
political subdivisions having territory in the district would
exceed three [two] percent at any location in the municipality.
SECTION 4. Sections 323.101(d) and (e), Tax Code, are
amended to read as follows:
(d) A county may not adopt a sales and use tax under this
section if as a result of the adoption of the tax the combined rate
of all sales and use taxes imposed by the county and other political
subdivisions of this state having territory in the county would
exceed three [two] percent at any location in the county.
(e) If the voters of a county approve the adoption of a sales
and use tax at an election held on the same election date on which a
municipality having territory in the county adopts a sales and use
tax or an additional sales and use tax and as a result the combined
rate of all sales and use taxes imposed by the county and other
political subdivisions of this state having territory in the county
would exceed three [two] percent at any location in the county, the
election to adopt a county sales and use tax has no effect.
SECTION 5. Section 8(f), Article 6550c-3, Revised Statutes,
is amended to read as follows:
(f) A district may not adopt a sales and use tax rate,
including a rate increase, that when combined with the rates of all
sales and use taxes imposed by other political subdivisions of the
state having territory in the district exceeds three [two] percent
in any location in the district.
SECTION 6. 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, 2009.