By: Eltife S.B. No. 402
(In the Senate - Filed January 5, 2009; February 17, 2009,
read first time and referred to Committee on Finance;
April 14, 2009, reported favorably by the following vote: Yeas 13,
Nays 0; April 14, 2009, sent to printer.)
A BILL TO BE ENTITLED
AN ACT
relating to the authority of the voters of a municipality or a
county to adopt a one-quarter cent sales and use tax in the
municipality or county to provide property tax relief.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle C, Title 3, Tax Code, is amended by
adding Chapter 326 to read as follows:
CHAPTER 326. MUNICIPAL AND COUNTY SALES AND USE TAX FOR PROPERTY
TAX RELIEF
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 326.001. APPLICABLE LAW. Except as otherwise provided
by this chapter:
(1) Chapter 321 applies to the municipal tax
authorized by this chapter in the same manner as that chapter
applies to the tax authorized by that chapter; and
(2) Chapter 323 applies to the county tax authorized
by this chapter in the same manner as that chapter applies to the
tax authorized by that chapter.
Sec. 326.002. EFFECT ON COMBINED LOCAL TAX RATE.
(a) Sections 321.101 and 323.101 do not apply to the municipal or
county tax authorized by this chapter.
(b) The rate of a municipal or county sales and use tax
imposed under this chapter may not be considered in determining the
combined or overlapping rate of local sales and use taxes in any
area under this subtitle or another law, including:
(1) the Health and Safety Code;
(2) the Local Government Code;
(3) the Special District Local Laws Code; or
(4) the Transportation Code.
[Sections 326.003-326.050 reserved for expansion]
SUBCHAPTER B. IMPOSITION OF TAX
Sec. 326.051. TAX AUTHORIZED. (a) A municipality or a
county may adopt or abolish the sales and use tax authorized by this
chapter at an election held in the municipality or county.
(b) The adoption of the tax authorized by this chapter by
one political subdivision does not affect the authority of another
political subdivision that has overlapping boundaries to also adopt
the tax authorized by this chapter.
Sec. 326.052. TAX RATE. The rate of the tax authorized by
this chapter is one-fourth of one percent.
Sec. 326.053. SALES AND USE TAX EFFECTIVE DATE. (a) The
adoption or abolition of the tax takes effect on the first day of
the first calendar quarter occurring after the expiration of the
first complete calendar quarter occurring after the date on which
the comptroller receives a notice of the results of the election
from the municipality or county.
(b) If the comptroller determines that an effective date
provided by Subsection (a) will occur before the comptroller can
reasonably take the action required to begin collecting the tax or
to implement the abolition of the tax, the effective date may be
extended by the comptroller until the first day of the next
succeeding calendar quarter.
[Sections 326.054-326.100 reserved for expansion]
SUBCHAPTER C. TAX ELECTION PROCEDURES
Sec. 326.101. CALLING ELECTION. (a) An election
authorized by this chapter in a municipality is called by the
adoption of an ordinance by the governing body of the municipality.
(b) An election authorized by this chapter in a county is
called by the adoption of an order by the commissioners court of the
county.
Sec. 326.102. ELECTION DATE. An election under this
chapter must be held on the next uniform election date that occurs
after the date of the election order and that allows sufficient time
to comply with the requirements of other law.
Sec. 326.103. BALLOT. (a) At an election to adopt the tax,
the ballot shall be prepared to permit voting for or against the
proposition: "The adoption of a local sales and use tax in (name of
municipality or county) at the rate of one-fourth of one percent to
reduce the (municipal or county) property tax rate."
(b) At an election to abolish the tax, the ballot shall be
prepared to permit voting for or against the proposition: "The
abolition of the one-fourth of one percent sales and use tax in
(name of municipality or county) used to reduce the (municipal or
county) property tax rate."
[Sections 326.104-326.150 reserved for expansion]
SUBCHAPTER D. USE OF TAX REVENUE
Sec. 326.151. USE OF REVENUE. Any amount derived by a
municipality or county from the sales and use tax under this chapter
is additional sales and use tax revenue for purposes of Section
26.041.
Sec. 326.152. CALCULATION OF MUNICIPAL OR COUNTY ROLLBACK
TAX RATE. For a municipality or county in which the voters have
approved the imposition of the sales and use tax under this chapter,
for an ad valorem tax year that begins on or after the date the sales
and use tax takes effect, in the formula for calculating the
rollback tax rate of the municipality or county, the officer or
employee designated by the governing body of the municipality or
the commissioners court of the county to make the calculation shall
substitute 1.05 for 1.08.
SECTION 2. Subdivision (1), Section 26.012, Tax Code, is
amended to read as follows:
(1) "Additional sales and use tax" means an additional
sales and use tax imposed by:
(A) a municipality [city] under Section
321.101(b) or Chapter 326;
(B) a county under Chapter 323 or 326; or
(C) a hospital district, other than a hospital
district created on or after September 1, 2001, that:
(i) imposes the sales and use tax under
Subchapter I, Chapter 286, Health and Safety Code; or
(ii) imposes the sales and use tax under
Subchapter L, Chapter 285, Health and Safety Code.
SECTION 3. Subsection (i), Section 31.01, Tax Code, is
amended to read as follows:
(i) For a municipality [city or town] that imposes an
additional sales and use tax under Section 321.101(b) or Chapter
326 [of this code], or a county that imposes a sales and use tax
under Chapter 323 or 326 [of this code], the tax bill shall indicate
the amount of additional ad valorem taxes, if any, that would have
been imposed on the property if additional ad valorem taxes had been
imposed in an amount equal to the amount of revenue estimated to be
collected from the additional municipal [city] sales and use tax or
from the county sales and use tax, as applicable, for the year
determined as provided by Section 26.041 [of this code].
SECTION 4. Sections 2 and 3 of this Act apply only to ad
valorem taxes that are imposed for an ad valorem tax year that
begins on or after January 1, 2010.
SECTION 5. (a) Except as provided by Subsection (b) of this
section, this Act takes effect September 1, 2009.
(b) Sections 2 and 3 of this Act take effect January 1, 2010.
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