Texas 2013 - 83rd Regular

Texas House Bill HB1511 Compare Versions

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1	1	By: Larson (Senate Sponsor - Eltife) H.B. No. 1511
2	2	(In the Senate - Received from the House May 10, 2013;
3	3	May 10, 2013, read first time and referred to Committee on Finance;
4	4	May 20, 2013, reported favorably by the following vote: Yeas 14,
5	5	Nays 0; May 20, 2013, sent to printer.)
6	6
7	7
8	8	A BILL TO BE ENTITLED
9	9	AN ACT
10	10	relating to the rates of sales and use taxes imposed by
11	11	municipalities; authorizing an increase or decrease in the rate of
12	12	those taxes.
13	13	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	14	SECTION 1. Section 334.082(d), Local Government Code, is
15	15	amended to read as follows:
16	16	(d) The tax imposed by this subchapter is in addition to a
17	17	tax imposed under other law, including Chapters 321 and 323, Tax
18	18	Code, and is included in computing a combined sales and use tax rate
19	19	for purposes of the limitation on the maximum combined sales and use
20	20	tax rate of political subdivisions.
21	21	SECTION 2. Section 334.083(a), Local Government Code, is
22	22	amended to read as follows:
23	23	(a) The rate of a tax adopted by a county under this
24	24	subchapter must be one-eighth, one-fourth, three-eighths, or
25	25	one-half of one percent. The rate of the tax adopted by a
26	26	municipality may be any rate that is an increment of one-eighth of
27	27	one percent, that the municipality determines is appropriate, and
28	28	that would not result in a combined rate that exceeds the maximum
29	29	combined rate prescribed by Section 321.101(f), Tax Code.
30	30	SECTION 3. Section 334.084, Local Government Code, is
31	31	amended to read as follows:
32	32	Sec. 334.084. RATE INCREASE. (a) A municipality [or
33	33	county] that has adopted a sales and use tax under this subchapter
34	34	at any rate, and a county that has adopted a sales and use tax under
35	35	this subchapter at a rate of less than one-half of one percent, may
36	36	by ordinance or order increase the rate of the tax if the increase
37	37	is approved by a majority of the registered voters of that
38	38	municipality or county voting at an election called and held for
39	39	that purpose.
40	40	(b) The county tax may be increased under Subsection (a) in
41	41	one or more increments of one-eighth of one percent to a maximum of
42	42	one-half of one percent. The municipal tax may be increased under
43	43	Subsection (a) in one or more increments of one-eighth of one
44	44	percent to any rate that the municipality determines is appropriate
45	45	and that would not result in a combined rate that exceeds the
46	46	maximum combined rate prescribed by Section 321.101(f), Tax Code.
47	47	(c) The ballot for an election to increase the tax shall be
48	48	printed to permit voting for or against the proposition: "The
49	49	adoption of a sales and use tax for the purpose of financing _______
50	50	(insert description of venue project) at the rate of _______ [of
51	51	one] percent (insert [one-fourth, three-eighths, or one-half, as]
52	52	appropriate rate)."
53	53	SECTION 4. Section 363.055(a), Local Government Code, is
54	54	amended to read as follows:
55	55	(a) The proposed rate for the district sales and use tax
56	56	imposed under Subchapter B, Chapter 321, Tax Code, may be any rate
57	57	that is an increment of one-eighth of one percent, that the
58	58	municipality determines is appropriate, and that would not result
59	59	in a combined rate that exceeds the maximum combined rate
60	60	prescribed by Section 321.101(f), Tax Code. The proposed rate for
61	61	the district sales and use tax imposed under [Subchapter B, Chapter
62	62	321, Tax Code, or] Subchapter B, Chapter 323, Tax Code, may be only:
63	63	(1) one-eighth of one percent;
64	64	(2) one-fourth of one percent;
65	65	(3) three-eighths of one percent; or
66	66	(4) one-half of one percent.
67	67	SECTION 5. Section 504.252(b), Local Government Code, is
68	68	amended to read as follows:
69	69	(b) The rate of the tax imposed under Subsection (a) may be
70	70	any rate that is an increment of one-eighth of one percent, that the
71	71	authorizing municipality determines is appropriate, and that would
72	72	not result in a combined rate that exceeds the maximum combined rate
73	73	prescribed by Section 504.254(a) [must be equal to one-eighth,
74	74	one-fourth, three-eighths, or one-half of one percent].
75	75	SECTION 6. Section 504.256, Local Government Code, is
76	76	amended to read as follows:
77	77	Sec. 504.256. BALLOT. In an election to adopt the sales and
78	78	use tax under this chapter, the ballot shall be printed to provide
79	79	for voting for or against the proposition: "The adoption of a
80	80	sales and use tax for the promotion and development of new and
81	81	expanded business enterprises at the rate of __________ [of one]
82	82	percent" (insert [one-eighth, one-fourth, three-eighths, or
83	83	one-half to be inserted as] appropriate rate).
84	84	SECTION 7. Section 504.258(c), Local Government Code, is
85	85	amended to read as follows:
86	86	(c) The tax rate may be reduced or increased to any rate that
87	87	is an increment of one-eighth of one percent, that the authorizing
88	88	municipality determines is appropriate, and that would not result
89	89	in a combined rate that exceeds the maximum combined rate
90	90	prescribed by Section 504.254(a)[:
91	91	[(1) reduced in one or more increments of one-eighth
92	92	of one percent, to a minimum rate of one-eighth of one percent; or
93	93	[(2) increased in one or more increments of one-eighth
94	94	of one percent, to a maximum rate of one-half of one percent].
95	95	SECTION 8. Section 504.261(b), Local Government Code, is
96	96	amended to read as follows:
97	97	(b) In an election to impose, reduce, increase, or abolish
98	98	the tax under this chapter and the additional sales and use tax, the
99	99	ballot shall be printed to provide for voting for or against the
100	100	proposition: "The adoption of a sales and use tax within the
101	101	municipality for the promotion and development of new and expanded
102	102	business enterprises at the rate of __________ [of one] percent
103	103	(insert [one-eighth, one-fourth, three-eighths, or one-half to be
104	104	inserted as] appropriate rate) and the adoption of an additional
105	105	sales and use tax within the municipality at the rate of __________
106	106	[of one] percent to be used to reduce the property tax rate" (insert
107	107	[one-eighth, one-fourth, three-eighths, or one-half to be inserted
108	108	as] appropriate rate).
109	109	SECTION 9. Section 505.252(b), Local Government Code, is
110	110	amended to read as follows:
111	111	(b) The rate of a tax adopted under this chapter may be any
112	112	rate that is an increment of one-eighth of one percent, that the
113	113	authorizing municipality determines is appropriate, and that would
114	114	not result in a combined rate that exceeds the maximum combined rate
115	115	prescribed by Section 505.256(a) [must be equal to one-eighth,
116	116	one-fourth, three-eighths, or one-half of one percent].
117	117	SECTION 10. Section 505.256(a), Local Government Code, is
118	118	amended to read as follows:
119	119	(a) Chapter 321, Tax Code, governs the imposition,
120	120	computation, administration, collection, and remittance of the
121	121	sales and use tax, except as inconsistent with this chapter. An
122	122	authorizing municipality may not adopt a rate under this chapter
123	123	that, when added to the rates of all other sales and use taxes
124	124	imposed by the authorizing municipality and other political
125	125	subdivisions of this state having territory in the authorizing
126	126	municipality, would result in a combined rate exceeding two percent
127	127	at any location in the municipality.
128	128	SECTION 11. Section 505.259, Local Government Code, is
129	129	amended to read as follows:
130	130	Sec. 505.259. ELECTION REQUIREMENT FOR CERTAIN
131	131	MUNICIPALITIES. For a tax under this subchapter at a rate that does
132	132	not exceed one-half of one percent, the [The] election requirement
133	133	under Section 505.251 is satisfied and another election is not
134	134	required if the voters of the authorizing municipality approved the
135	135	imposition of an additional one-half cent sales and use tax at an
136	136	election held before March 28, 1991, under an ordinance calling the
137	137	election that:
138	138	(1) was published in a newspaper of general
139	139	circulation in the municipality at least 14 days before the date of
140	140	the election; and
141	141	(2) expressly stated that the election was being held
142	142	in anticipation of the enactment of enabling and implementing
143	143	legislation without further elections.
144	144	SECTION 12. Section 321.101(a), Tax Code, is amended to
145	145	read as follows:
146	146	(a) A municipality may adopt or repeal a sales and use tax
147	147	authorized by this chapter, other than the additional municipal
148	148	sales and use tax, and may reduce or increase the rate of the tax, at
149	149	an election in which a majority of the qualified voters of the
150	150	municipality approve the adoption, reduction, increase, or repeal
151	151	of the tax.
152	152	SECTION 13. Section 321.102(a), Tax Code, is amended to
153	153	read as follows:
154	154	(a) A tax imposed under this chapter, a tax rate increase or
155	155	decrease adopted under this chapter, or the repeal of a tax
156	156	abolished under this chapter takes effect on the first day of the
157	157	first calendar quarter occurring after the expiration of the first
158	158	complete calendar quarter occurring after the date on which the
159	159	comptroller receives a notice of the action as required by Section
160	160	321.405(b). This subsection does not apply to the additional
161	161	municipal sales and use tax.
162	162	SECTION 14. Section 321.103, Tax Code, is amended to read as
163	163	follows:
164	164	Sec. 321.103. SALES TAX. (a) In a municipality that has
165	165	adopted the tax authorized by Section 321.101(a), there is imposed
166	166	a tax on the receipts from the sale at retail of taxable items
167	167	within the municipality at any [the] rate that is an increment of
168	168	one-eighth of one percent, that the municipality determines is
169	169	appropriate, that would not result in a combined rate that exceeds
170	170	the maximum combined rate prescribed by Section 321.101(f), and
171	171	that is approved by the voters. The tax is imposed [of one percent
172	172	and] at the same rate on the receipts from the sale at retail within
173	173	the municipality of gas and electricity for residential use.
174	174	(b) In a municipality that has adopted the additional
175	175	municipal sales and use tax, the tax is imposed at any [the] rate
176	176	that is an increment of one-eighth of one percent, that the
177	177	municipality determines is appropriate, that would not result in a
178	178	combined rate that exceeds the maximum combined rate prescribed by
179	179	Section 321.101(f), and that is approved by the voters. [The rate,
180	180	when the tax is adopted, must be equal to either one-eighth,
181	181	one-fourth, three-eighths, or one-half of one percent.] The rate
182	182	may be reduced in one or more increments of one-eighth of one
183	183	percent [to a minimum of one-eighth of one percent] or increased in
184	184	one or more increments of one-eighth of one percent [to a maximum of
185	185	one-half of one percent, or the tax may be abolished]. The rate
186	186	that the municipality adopts is on the receipts from the sale at
187	187	retail of all taxable items within the municipality and at the same
188	188	rate on the receipts from the sale at retail within the municipality
189	189	of gas and electricity for residential use unless the residential
190	190	use of gas and electricity is exempted from the tax imposed under
191	191	Section 321.101(a), in which case the residential use of gas and
192	192	electricity is exempted under this subsection also.
193	193	SECTION 15. Section 321.108(d), Tax Code, is amended to
194	194	read as follows:
195	195	(d) The rate of a tax adopted for a district under this
196	196	section may be increased to any rate that is an increment [in
197	197	increments] of one-eighth of one percent[, not to exceed a total tax
198	198	rate of one-half percent] for financing the operation of the crime
199	199	control and prevention district[,] by order of the board of
200	200	directors of the crime control and prevention district if the board
201	201	determines that the rate is appropriate, would not result in a
202	202	combined rate that exceeds the maximum combined rate prescribed by
203	203	Section 321.101(f), and is approved by a majority of the voters
204	204	voting at an election called by the board and held in the district
205	205	on the question of increasing the tax rate. At the election, the
206	206	ballot shall be printed to provide for voting for or against the
207	207	following proposition: "The increase of the ______________ Crime
208	208	Control and Prevention District sales and use tax rate to
209	209	____________ percent." If there is an increase or decrease under
210	210	this subsection in the rate of a tax imposed under this section, the
211	211	new rate takes effect on the first day of the next calendar quarter
212	212	after the expiration of one calendar quarter after the comptroller
213	213	receives notice of the increase or decrease. However, if the
214	214	comptroller notifies the president of the board of directors of the
215	215	district in writing within 10 days after receipt of the
216	216	notification that the comptroller requires more time to implement
217	217	reporting and collection procedures, the comptroller may delay
218	218	implementation of the rate change for another calendar quarter, and
219	219	the new rate takes effect on the first day of the next calendar
220	220	quarter following the elapsed quarter.
221	221	SECTION 16. Section 321.404, Tax Code, is amended by
222	222	amending Subsections (a) and (c) and adding Subsection (d) to read
223	223	as follows:
224	224	(a) In an election to adopt the tax, the ballot shall be
225	225	printed to provide for voting for or against the applicable
226	226	proposition: "A [one percent] sales and use tax is adopted within
227	227	the city at the rate of _______ percent" (insert appropriate rate)
228	228	or "The adoption of an additional sales and use tax within the city
229	229	at the rate of ________ [of one] percent to be used to reduce the
230	230	property tax rate" (insert [one-eighth, one-fourth, three-eighths,
231	231	or one-half to be inserted as] appropriate rate).
232	232	(c) In a municipality that does not impose a property tax,
233	233	the ballot at an election to adopt the additional municipal sales
234	234	and use tax shall be printed to provide for voting for or against
235	235	the following proposition: "The adoption of an additional sales
236	236	and use tax within the city at the rate of ________ [of one]
237	237	percent" (insert [one-eighth, one-fourth, three-eighths, or
238	238	one-half to be inserted as] appropriate rate).
239	239	(d) In an election to reduce or increase the tax, the ballot
240	240	shall be printed to provide for voting for or against the
241	241	proposition: "The adoption of a local sales and use tax in (name of
242	242	municipality) at the rate of ______ (insert appropriate rate)."
243	243	SECTION 17. Section 321.405(a), Tax Code, is amended to
244	244	read as follows:
245	245	(a) Within 10 days after an election in which the voters
246	246	approve of the adoption, change in rate, or abolition of a tax
247	247	authorized by this chapter, the governing body of the municipality
248	248	shall by resolution or ordinance entered in its minutes of
249	249	proceedings, declare the results of the election. A resolution or
250	250	ordinance under this section must include statements showing:
251	251	(1) the date of the election;
252	252	(2) the proposition on which the vote was held;
253	253	(3) the total number of votes cast for and against the
254	254	proposition; and
255	255	(4) the number of votes by which the proposition was
256	256	approved.
257	257	SECTION 18. Section 327.004, Tax Code, is amended to read as
258	258	follows:
259	259	Sec. 327.004. TAX RATE. The tax authorized by this chapter
260	260	may be imposed at any rate that is an increment of one-eighth of one
261	261	percent, that the municipality determines is appropriate, and that
262	262	would not result in a combined rate that exceeds the maximum
263	263	combined rate prescribed by Section 327.003(b) [the rate of
264	264	one-eighth of one percent or one-fourth of one percent].
265	265	SECTION 19. Section 327.006(b), Tax Code, is amended to
266	266	read as follows:
267	267	(b) At an election to adopt the tax, the ballot shall be
268	268	prepared to permit voting for or against the proposition: "The
269	269	adoption of a local sales and use tax in (name of municipality) at
270	270	the rate of (insert appropriate rate [one-eighth of one percent or
271	271	one-fourth of one percent]) to provide revenue for maintenance and
272	272	repair of municipal streets."
273	273	SECTION 20. Section 327.0065, Tax Code, is amended to read
274	274	as follows:
275	275	Sec. 327.0065. RATE CHANGE. (a) A municipality that has
276	276	adopted a sales and use tax under this chapter [at a rate of
277	277	one-fourth of one percent] may by ordinance decrease the rate of the
278	278	tax in increments of [to] one-eighth of one percent.
279	279	(b) A municipality that has adopted a sales and use tax
280	280	under this chapter [at a rate of one-eighth of one percent] may by
281	281	ordinance increase the rate of the tax to any rate that is an
282	282	increment of one-eighth of one percent, that the municipality
283	283	determines is appropriate, and that would not result in a combined
284	284	rate that exceeds the maximum combined rate prescribed by Section
285	285	327.003(b) [to one-fourth of one percent] if the increase is
286	286	authorized at an election held in the municipality.
287	287	(c) The ballot for an election to increase the tax shall be
288	288	printed to permit voting for or against the proposition: "The
289	289	adoption of a local sales and use tax in (name of municipality) at
290	290	the rate of (insert appropriate rate) [one-fourth of one percent]
291	291	to provide revenue for maintenance and repair of municipal
292	292	streets."
293	293	SECTION 21. Section 327.007(a), Tax Code, is amended to
294	294	read as follows:
295	295	(a) Unless imposition of the sales and use tax authorized by
296	296	this chapter is reauthorized as provided by this section, the tax
297	297	expires on:
298	298	(1) the eighth [fourth] anniversary of the date the
299	299	tax originally took effect under Section 327.005; or
300	300	(2) the first day of the first calendar quarter
301	301	occurring after the eighth [fourth] anniversary of the date the tax
302	302	was last reauthorized under this section.
303	303	SECTION 22. (a) The changes in law made by this Act to
304	304	Sections 334.084(c), 504.256, and 504.261(b), Local Government
305	305	Code, and Sections 321.404, 327.006(b), and 327.0065(c), Tax Code,
306	306	apply only to ballot language for an election ordered on or after
307	307	the effective date of this Act. Ballot language for an election
308	308	ordered before the effective date of this Act is governed by the law
309	309	in effect when the election was ordered.
310	310	(b) The change in law made by this Act to Section
311	311	327.007(a), Tax Code, applies only to the expiration of a sales and
312	312	use tax under Chapter 327, Tax Code, that is adopted or reauthorized
313	313	on or after the effective date of this Act. The expiration of a
314	314	sales and use tax that was adopted or last reauthorized before the
315	315	effective date of this Act is governed by the law in effect
316	316	immediately before the effective date of this Act, and the former
317	317	law is continued in effect for that purpose.
318	318	SECTION 23. This Act takes effect September 1, 2013.
319	319	* * * * *