By: Smith of Tarrant H.B. No. 2972
A BILL TO BE ENTITLED
AN ACT
relating to the municipal street maintenance tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
Amend Chapter 327, Tax Code, as follow:
SECTION 1. Section 327.007 REAUTHORIZATION OF TAX. (a)
Except as provided by Section 327.0075 and unless Unless imposition
of the sales and use tax authorized by this chapter is reauthorized
as provided by this section or Section 327.0075, the tax expires on:
(1) the fourth anniversary of the date the tax originally
took effect under Section 327.005; or
(2) the first day of the first calendar quarter occurring
after the fourth anniversary of the date the tax was last
reauthorized under this section.; or
(3) the first day of the first calendar quarter occurring
after the eighth anniversary of the date the tax was last
reauthorized under section 327.0075.
(b) Except as provided by Section 327.0075, an An election
to reauthorize the tax is called and held in the same manner as an
election to adopt the tax under Section 327.006, except the ballot
proposition shall be prepared to permit voting for or against the
proposition: "The reauthorization of the local sales and use tax in
(name of municipality) at the rate of (insert appropriate rate) to
continue providing revenue for maintenance and repair of municipal
streets."
(c) If an election to reauthorize the tax is not held before
the tax expires as provided by Subsection (a), or if a majority of
the votes cast in an election to reauthorize the tax do not favor
reauthorization, the municipality may not call an election on the
question of authorizing a new tax under this chapter before the
first anniversary of the date on which the tax expired.
(d) Not later than the 10th day after the date the
municipality determines that the tax will expire as provided by
Subsection (a), the municipality shall notify the comptroller of
the scheduled expiration. The comptroller may delay the scheduled
expiration date if the comptroller notifies the municipality that
more time is required. The comptroller must provide a new
expiration date that is not later than the last day of the first
calendar quarter occurring after the notification to the
comptroller.
SECTION 2. Section 327.0075. REAUTHORIZATION OF TAX FOR
CERTAIN MUNICIPALITIES. (a) This section only applies to a
municipality which:
(1) has already held at least two elections authorized by
this Chapter, and
(2) at least 66 percent of the voters in the last two
consecutive elections authorized by this Chapter approved of the
tax.
(b) A municipality to which this section applies may, by
ordinance, elect to call a reauthorization election held in the
same manner as an election to adopt the tax under Section 327.006,
except the ballot proposition shall be prepared to permit voting
for or against the proposition: "The reauthorization of the local
sales and use tax for eight years in (name of municipality) at the
rate of (insert appropriate rate) to continue providing revenue for
maintenance and repair of municipal streets."
SECTION 3. Section 327.008, Tax Code, is amended to read as
follow:
Sec. 327.008. USE OF TAX REVENUE. Revenue from the tax
imposed under this chapter may be used only to maintain and repair
municipal streets and sidewalks existing on the date of the
election to adopt the tax.
SECTION 4. 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, 2011.