Texas 2015 - 84th Regular

Texas House Bill HB157 Compare Versions

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1		-	By: Larson, Springer (Senate Sponsor - Eltife) H.B. No. 157
2		-	(In the Senate - Received from the House April 13, 2015;
3		-	May 7, 2015, read first time and referred to Committee on Finance;
4		-	May 12, 2015, reported favorably by the following vote: Yeas 8,
5		-	Nays 1, 1 present not voting; May 12, 2015, sent to printer.)
6		-	Click here to see the committee vote
	1	+	H.B. No. 157
7	2
8	3
9		-	A BILL TO BE ENTITLED
10	4		AN ACT
11	5		relating to the rates of sales and use taxes imposed by
12	6		municipalities; authorizing an increase or decrease in the rate of
13	7		those taxes.
14	8		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
15	9		SECTION 1. Section 334.082(d), Local Government Code, is
16	10		amended to read as follows:
17	11		(d) The tax imposed by this subchapter is in addition to a
18	12		tax imposed under other law, including Chapters 321 and 323, Tax
19	13		Code, and is included in computing a combined sales and use tax rate
20	14		for purposes of the limitation on the maximum combined sales and use
21	15		tax rate of political subdivisions.
22	16		SECTION 2. Section 334.083(a), Local Government Code, is
23	17		amended to read as follows:
24	18		(a) The rate of a tax adopted by a county under this
25	19		subchapter must be one-eighth, one-fourth, three-eighths, or
26	20		one-half of one percent. The rate of the tax adopted by a
27	21		municipality may be any rate that is an increment of one-eighth of
28	22		one percent, that the municipality determines is appropriate, and
29	23		that would not result in a combined rate that exceeds the maximum
30	24		combined rate prescribed by Section 321.101(f), Tax Code.
31	25		SECTION 3. Section 334.084, Local Government Code, is
32	26		amended to read as follows:
33	27		Sec. 334.084. RATE INCREASE. (a) A municipality [or
34	28		county] that has adopted a sales and use tax under this subchapter
35	29		at any rate, and a county that has adopted a sales and use tax under
36	30		this subchapter at a rate of less than one-half of one percent, may
37	31		by ordinance or order increase the rate of the tax if the increase
38	32		is approved by a majority of the registered voters of that
39	33		municipality or county voting at an election called and held for
40	34		that purpose.
41	35		(b) The county tax may be increased under Subsection (a) in
42	36		one or more increments of one-eighth of one percent to a maximum of
43	37		one-half of one percent. The municipal tax may be increased under
44	38		Subsection (a) in one or more increments of one-eighth of one
45	39		percent to any rate that the municipality determines is appropriate
46	40		and that would not result in a combined rate that exceeds the
47	41		maximum combined rate prescribed by Section 321.101(f), Tax Code.
48	42		(c) The ballot for an election to increase the tax shall be
49	43		printed to permit voting for or against the proposition: "The
50	44		adoption of a sales and use tax for the purpose of financing _______
51	45		(insert description of venue project) at the rate of _______ [of
52	46		one] percent (insert [one-fourth, three-eighths, or one-half, as]
53	47		appropriate rate)."
54	48		SECTION 4. Section 363.055(a), Local Government Code, is
55	49		amended to read as follows:
56	50		(a) The proposed rate for the district sales and use tax
57	51		imposed under Subchapter B, Chapter 321, Tax Code, may be any rate
58	52		that is an increment of one-eighth of one percent, that the
59	53		municipality determines is appropriate, and that would not result
60	54		in a combined rate that exceeds the maximum combined rate
61	55		prescribed by Section 321.101(f), Tax Code. The proposed rate for
62	56		the district sales and use tax imposed under [Subchapter B, Chapter
63	57		321, Tax Code, or] Subchapter B, Chapter 323, Tax Code, may be only:
64	58		(1) one-eighth of one percent;
65	59		(2) one-fourth of one percent;
66	60		(3) three-eighths of one percent; or
67	61		(4) one-half of one percent.
68	62		SECTION 5. Section 504.252(b), Local Government Code, is
69	63		amended to read as follows:
70	64		(b) The rate of the tax imposed under Subsection (a) may be
71	65		any rate that is an increment of one-eighth of one percent, that the
72	66		authorizing municipality determines is appropriate, and that would
73	67		not result in a combined rate that exceeds the maximum combined rate
74	68		prescribed by Section 504.254(a) [must be equal to one-eighth,
75	69		one-fourth, three-eighths, or one-half of one percent].
76	70		SECTION 6. Section 504.256, Local Government Code, is
77	71		amended to read as follows:
78	72		Sec. 504.256. BALLOT. In an election to adopt the sales and
79	73		use tax under this chapter, the ballot shall be printed to provide
80	74		for voting for or against the proposition: "The adoption of a
81	75		sales and use tax for the promotion and development of new and
82	76		expanded business enterprises at the rate of __________ [of one]
83	77		percent" (insert [one-eighth, one-fourth, three-eighths, or
84	78		one-half to be inserted as] appropriate rate).
85	79		SECTION 7. Section 504.258(c), Local Government Code, is
86	80		amended to read as follows:
87	81		(c) The tax rate may be reduced or increased to any rate that
88	82		is an increment of one-eighth of one percent, that the authorizing
89	83		municipality determines is appropriate, and that would not result
90	84		in a combined rate that exceeds the maximum combined rate
91	85		prescribed by Section 504.254(a)[:
92	86		[(1) reduced in one or more increments of one-eighth
93	87		of one percent, to a minimum rate of one-eighth of one percent; or
94	88		[(2) increased in one or more increments of one-eighth
95	89		of one percent, to a maximum rate of one-half of one percent].
96	90		SECTION 8. Section 504.261(b), Local Government Code, is
97	91		amended to read as follows:
98	92		(b) In an election to impose, reduce, increase, or abolish
99	93		the tax under this chapter and the additional sales and use tax, the
100	94		ballot shall be printed to provide for voting for or against the
101	95		proposition: "The adoption of a sales and use tax within the
102	96		municipality for the promotion and development of new and expanded
103	97		business enterprises at the rate of __________ [of one] percent
104	98		(insert [one-eighth, one-fourth, three-eighths, or one-half to be
105	99		inserted as] appropriate rate) and the adoption of an additional
106	100		sales and use tax within the municipality at the rate of __________
107	101		[of one] percent to be used to reduce the property tax rate" (insert
108	102		[one-eighth, one-fourth, three-eighths, or one-half to be inserted
109	103		as] appropriate rate).
110	104		SECTION 9. Section 505.252(b), Local Government Code, is
111	105		amended to read as follows:
112	106		(b) The rate of a tax adopted under this chapter may be any
113	107		rate that is an increment of one-eighth of one percent, that the
114	108		authorizing municipality determines is appropriate, and that would
115	109		not result in a combined rate that exceeds the maximum combined rate
116	110		prescribed by Section 505.256(a) [must be equal to one-eighth,
117	111		one-fourth, three-eighths, or one-half of one percent].
118	112		SECTION 10. Section 505.256(a), Local Government Code, is
119	113		amended to read as follows:
120	114		(a) Chapter 321, Tax Code, governs the imposition,
121	115		computation, administration, collection, and remittance of the
122	116		sales and use tax, except as inconsistent with this chapter. An
123	117		authorizing municipality may not adopt a rate under this chapter
124	118		that, when added to the rates of all other sales and use taxes
125	119		imposed by the authorizing municipality and other political
126	120		subdivisions of this state having territory in the authorizing
127	121		municipality, would result in a combined rate exceeding two percent
128	122		at any location in the municipality.
129	123		SECTION 11. Section 505.259, Local Government Code, is
130	124		amended to read as follows:
131	125		Sec. 505.259. ELECTION REQUIREMENT FOR CERTAIN
132	126		MUNICIPALITIES. For a tax under this subchapter at a rate that does
133	127		not exceed one-half of one percent, the [The] election requirement
134	128		under Section 505.251 is satisfied and another election is not
135	129		required if the voters of the authorizing municipality approved the
136	130		imposition of an additional one-half cent sales and use tax at an
137	131		election held before March 28, 1991, under an ordinance calling the
138	132		election that:
139	133		(1) was published in a newspaper of general
140	134		circulation in the municipality at least 14 days before the date of
141	135		the election; and
142	136		(2) expressly stated that the election was being held
143	137		in anticipation of the enactment of enabling and implementing
144	138		legislation without further elections.
145	139		SECTION 12. Section 321.101(a), Tax Code, is amended to
146	140		read as follows:
147	141		(a) A municipality may adopt or repeal a sales and use tax
148	142		authorized by this chapter, other than the additional municipal
149	143		sales and use tax, and may reduce or increase the rate of the tax, at
150	144		an election in which a majority of the qualified voters of the
151	145		municipality approve the adoption, reduction, increase, or repeal
152	146		of the tax.
153	147		SECTION 13. Section 321.102(a), Tax Code, is amended to
154	148		read as follows:
155	149		(a) A tax imposed under this chapter, a tax rate increase or
156	150		decrease adopted under this chapter, or the repeal of a tax
157	151		abolished under this chapter takes effect on the first day of the
158	152		first calendar quarter occurring after the expiration of the first
159	153		complete calendar quarter occurring after the date on which the
160	154		comptroller receives a notice of the action as required by Section
161	155		321.405(b). This subsection does not apply to the additional
162	156		municipal sales and use tax.
163	157		SECTION 14. Section 321.103, Tax Code, is amended to read as
164	158		follows:
165	159		Sec. 321.103. SALES TAX. (a) In a municipality that has
166	160		adopted the tax authorized by Section 321.101(a), there is imposed
167	161		a tax on the receipts from the sale at retail of taxable items
168	162		within the municipality at any [the] rate that is an increment of
169	163		one-eighth of one percent, that the municipality determines is
170	164		appropriate, that would not result in a combined rate that exceeds
171	165		the maximum combined rate prescribed by Section 321.101(f), and
172	166		that is approved by the voters. The tax is imposed [of one percent
173	167		and] at the same rate on the receipts from the sale at retail within
174	168		the municipality of gas and electricity for residential use.
175	169		(b) In a municipality that has adopted the additional
176	170		municipal sales and use tax, the tax is imposed at any [the] rate
177	171		that is an increment of one-eighth of one percent, that the
178	172		municipality determines is appropriate, that would not result in a
179	173		combined rate that exceeds the maximum combined rate prescribed by
180	174		Section 321.101(f), and that is approved by the voters. [The rate,
181	175		when the tax is adopted, must be equal to either one-eighth,
182	176		one-fourth, three-eighths, or one-half of one percent.] The rate
183	177		may be reduced in one or more increments of one-eighth of one
184	178		percent [to a minimum of one-eighth of one percent] or increased in
185	179		one or more increments of one-eighth of one percent [to a maximum of
186	180		one-half of one percent, or the tax may be abolished]. The rate
187	181		that the municipality adopts is on the receipts from the sale at
188	182		retail of all taxable items within the municipality and at the same
189	183		rate on the receipts from the sale at retail within the municipality
190	184		of gas and electricity for residential use unless the residential
191	185		use of gas and electricity is exempted from the tax imposed under
192	186		Section 321.101(a), in which case the residential use of gas and
193	187		electricity is exempted under this subsection also.
194	188		SECTION 15. Section 321.108(d), Tax Code, is amended to
195	189		read as follows:
196	190		(d) The rate of a tax adopted for a district under this
197	191		section may be increased to any rate that is an increment [in
198	192		increments] of one-eighth of one percent[, not to exceed a total tax
199	193		rate of one-half percent] for financing the operation of the crime
200	194		control and prevention district[,] by order of the board of
201	195		directors of the crime control and prevention district if the board
202	196		determines that the rate is appropriate, would not result in a
203	197		combined rate that exceeds the maximum combined rate prescribed by
204	198		Section 321.101(f), and is approved by a majority of the voters
205	199		voting at an election called by the board and held in the district
206	200		on the question of increasing the tax rate. At the election, the
207	201		ballot shall be printed to provide for voting for or against the
208	202		following proposition: "The increase of the ______________ Crime
209	203		Control and Prevention District sales and use tax rate to
210	204		____________ percent." If there is an increase or decrease under
211	205		this subsection in the rate of a tax imposed under this section, the
212	206		new rate takes effect on the first day of the next calendar quarter
213	207		after the expiration of one calendar quarter after the comptroller
214	208		receives notice of the increase or decrease. However, if the
215	209		comptroller notifies the president of the board of directors of the
216	210		district in writing within 10 days after receipt of the
217	211		notification that the comptroller requires more time to implement
218	212		reporting and collection procedures, the comptroller may delay
219	213		implementation of the rate change for another calendar quarter, and
220	214		the new rate takes effect on the first day of the next calendar
221	215		quarter following the elapsed quarter.
222	216		SECTION 16. Section 321.404, Tax Code, is amended by
223	217		amending Subsections (a) and (c) and adding Subsection (d) to read
224	218		as follows:
225	219		(a) In an election to adopt the tax, the ballot shall be
226	220		printed to provide for voting for or against the applicable
227	221		proposition: "A [one percent] sales and use tax is adopted within
228	222		the city at the rate of _______ percent" (insert appropriate rate)
229	223		or "The adoption of an additional sales and use tax within the city
230	224		at the rate of ________ [of one] percent to be used to reduce the
231	225		property tax rate" (insert [one-eighth, one-fourth, three-eighths,
232	226		or one-half to be inserted as] appropriate rate).
233	227		(c) In a municipality that does not impose a property tax,
234	228		the ballot at an election to adopt the additional municipal sales
235	229		and use tax shall be printed to provide for voting for or against
236	230		the following proposition: "The adoption of an additional sales
237	231		and use tax within the city at the rate of ________ [of one]
238	232		percent" (insert [one-eighth, one-fourth, three-eighths, or
239	233		one-half to be inserted as] appropriate rate).
240	234		(d) In an election to reduce or increase the tax, the ballot
241	235		shall be printed to provide for voting for or against the
242	236		proposition: "The adoption of a local sales and use tax in (name of
243	237		municipality) at the rate of ______ (insert appropriate rate)."
244	238		SECTION 17. Section 321.405(a), Tax Code, is amended to
245	239		read as follows:
246	240		(a) Within 10 days after an election in which the voters
247	241		approve of the adoption, change in rate, or abolition of a tax
248	242		authorized by this chapter, the governing body of the municipality
249	243		shall by resolution or ordinance entered in its minutes of
250	244		proceedings, declare the results of the election. A resolution or
251	245		ordinance under this section must include statements showing:
252	246		(1) the date of the election;
253	247		(2) the proposition on which the vote was held;
254	248		(3) the total number of votes cast for and against the
255	249		proposition; and
256	250		(4) the number of votes by which the proposition was
257	251		approved.
258	252		SECTION 18. Section 327.004, Tax Code, is amended to read as
259	253		follows:
260	254		Sec. 327.004. TAX RATE. The tax authorized by this chapter
261	255		may be imposed at any rate that is an increment of one-eighth of one
262	256		percent, that the municipality determines is appropriate, and that
263	257		would not result in a combined rate that exceeds the maximum
264	258		combined rate prescribed by Section 327.003(b) [the rate of
265	259		one-eighth of one percent or one-fourth of one percent].
266	260		SECTION 19. Section 327.006(b), Tax Code, is amended to
267	261		read as follows:
268	262		(b) At an election to adopt the tax, the ballot shall be
269	263		prepared to permit voting for or against the proposition: "The
270	264		adoption of a local sales and use tax in (name of municipality) at
271	265		the rate of (insert appropriate rate [one-eighth of one percent or
272	266		one-fourth of one percent]) to provide revenue for maintenance and
273	267		repair of municipal streets."
274	268		SECTION 20. Section 327.0065, Tax Code, is amended to read
275	269		as follows:
276	270		Sec. 327.0065. RATE CHANGE. (a) A municipality that has
277	271		adopted a sales and use tax under this chapter [at a rate of
278	272		one-fourth of one percent] may by ordinance decrease the rate of the
279	273		tax in increments of [to] one-eighth of one percent.
280	274		(b) A municipality that has adopted a sales and use tax
281	275		under this chapter [at a rate of one-eighth of one percent] may by
282	276		ordinance increase the rate of the tax to any rate that is an
283	277		increment of one-eighth of one percent, that the municipality
284	278		determines is appropriate, and that would not result in a combined
285	279		rate that exceeds the maximum combined rate prescribed by Section
286	280		327.003(b) [to one-fourth of one percent] if the increase is
287	281		authorized at an election held in the municipality.
288	282		(c) The ballot for an election to increase the tax shall be
289	283		printed to permit voting for or against the proposition: "The
290	284		adoption of a local sales and use tax in (name of municipality) at
291	285		the rate of (insert appropriate rate) [one-fourth of one percent]
292	286		to provide revenue for maintenance and repair of municipal
293	287		streets."
294	288		SECTION 21. The changes in law made by this Act to Sections
295	289		334.084(c), 504.256, and 504.261(b), Local Government Code, and
296	290		Sections 321.404, 327.006(b), and 327.0065(c), Tax Code, apply only
297	291		to ballot language for an election ordered on or after the effective
298	292		date of this Act. Ballot language for an election ordered before the
299	293		effective date of this Act is governed by the law in effect when the
300	294		election was ordered.
301	295		SECTION 22. This Act takes effect September 1, 2015.
302		-	* * * * *
	296	+	______________________________ ______________________________
	297	+	President of the Senate Speaker of the House
	298	+	I certify that H.B. No. 157 was passed by the House on April
	299	+	9, 2015, by the following vote: Yeas 141, Nays 2, 2 present, not
	300	+	voting.
	301	+	______________________________
	302	+	Chief Clerk of the House
	303	+	I certify that H.B. No. 157 was passed by the Senate on May
	304	+	20, 2015, by the following vote: Yeas 26, Nays 4.
	305	+	______________________________
	306	+	Secretary of the Senate
	307	+	APPROVED: _____________________
	308	+	Date
	309	+	_____________________
	310	+	Governor