82R89 JE-D
By: Gutierrez H.B. No. 704
A BILL TO BE ENTITLED
AN ACT
relating to the rate of a local sales and use tax imposed by certain
local governmental entities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle C, Title 3, Tax Code, is amended by
adding Chapter 328 to read as follows:
CHAPTER 328. RATE OF CERTAIN LOCAL SALES AND USE TAXES ADOPTED OR
CHANGED
Sec. 328.001. DEFINITION. In this chapter, "taxing
authority" means a local governmental entity that imposes a local
sales and use tax administered and computed under this subtitle and
to which this subtitle applies, including a tax imposed under:
(1) Chapter 321, 322, 323, 324, 325, or 327;
(2) the Health and Safety Code;
(3) the Local Government Code;
(4) the Transportation Code;
(5) the Special District Local Laws Code; or
(6) a local or special law authorizing the imposition
of a sales and use tax.
Sec. 328.002. APPLICABILITY. This chapter does not apply
to a taxing authority that is authorized to impose a local sales and
use tax at only one specific rate.
Sec. 328.003. TAX RATE. (a) A taxing authority that is
authorized to adopt a local sales and use tax at a rate that is set
at an increment of one-fourth or one-eighth of one percent may
instead adopt the tax at a rate that is set at an increment of
one-sixteenth of one percent.
(b) A taxing authority that is authorized to impose a local
sales and use tax at a rate that may be increased or decreased in
increments of one-fourth or one-eighth of one percent may instead
increase or decrease the rate in increments of one-sixteenth of one
percent.
Sec. 328.004. EFFECT ON OTHER LAW. (a) Except as provided
by Subsection (b), to the extent this chapter conflicts with
another law, this chapter prevails.
(b) This chapter does not affect a law establishing:
(1) the purpose for which a local sales and use tax may
be imposed;
(2) the maximum or minimum rate at which a local sales
and use tax may be imposed by a particular taxing authority or for a
particular purpose;
(3) the general power of a particular taxing authority
to adopt, increase, decrease, or abolish a local sales and use tax;
or
(4) the maximum combined rate of all local sales and
use taxes imposed by a political subdivision having territory in a
taxing authority.
SECTION 2. This Act takes effect September 1, 2011.