| 14 | | - | (b) The sales tax rate is 5.95 [6-1/4] percent of the sales |
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| 15 | | - | price of the taxable item sold. |
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| 16 | | - | SECTION 2. The change in law made by this Act does not |
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| 11 | + | (b) The sales tax rate is the lower of 5.95 [6-1/4] percent |
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| 12 | + | of the sales price of the taxable item sold or the rate adopted |
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| 13 | + | under Section 151.0511. |
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| 14 | + | SECTION 2. Subchapter C, Chapter 151, Tax Code, is amended |
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| 15 | + | by adding Section 151.0511 to read as follows: |
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| 16 | + | Sec. 151.0511. COMPTROLLER TAX RATE ADJUSTMENT. (a) On the |
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| 17 | + | date the comptroller makes the transfer of any unencumbered |
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| 18 | + | positive balance of general revenues from a preceding biennium to |
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| 19 | + | the economic stabilization fund as described by Section 49-g(b), |
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| 20 | + | Article III, Texas Constitution, the comptroller shall: |
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| 21 | + | (1) identify an amount of money equal to 25 percent of |
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| 22 | + | those unencumbered general revenues that are not transferred under |
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| 23 | + | that subsection; |
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| 24 | + | (2) estimate the amount of revenue attributable to the |
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| 25 | + | taxes imposed under Sections 151.051 and 151.101 that would be |
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| 26 | + | received by the comptroller during the current state fiscal |
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| 27 | + | biennium if the taxes were imposed at the rate in effect on the date |
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| 28 | + | the estimate is made; and |
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| 29 | + | (3) subtract the amount of money identified under |
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| 30 | + | Subdivision (1) from the amount of revenue estimated under |
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| 31 | + | Subdivision (2). |
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| 32 | + | (b) If the amount of money determined under Subsection |
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| 33 | + | (a)(3) is greater than zero, the comptroller shall determine the |
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| 34 | + | rate for purposes of Sections 151.051 and 151.101 that, if applied |
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| 35 | + | beginning January 1 of the current state fiscal biennium, is |
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| 36 | + | estimated to generate the amount of money determined by the |
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| 37 | + | comptroller under Subsection (a)(3) for that biennium. |
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| 38 | + | (c) Not later than December 15 of each odd-numbered year, |
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| 39 | + | the comptroller shall: |
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| 40 | + | (1) adopt the adjusted tax rate determined under |
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| 41 | + | Subsection (b), rounded to the nearest thousandth; |
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| 42 | + | (2) publish notice of the adjusted tax rate in the |
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| 43 | + | Texas Register; and |
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| 44 | + | (3) provide any other notice relating to the adjusted |
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| 45 | + | tax rate that the comptroller considers appropriate. |
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| 46 | + | (d) The adjusted tax rate adopted by the comptroller under |
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| 47 | + | this section is effective on January 1 of the even-numbered year |
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| 48 | + | following the date the rate is adopted. |
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| 49 | + | (e) In a state fiscal year in which the amount of money |
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| 50 | + | determined under Subsection (a)(3) is zero or less, the comptroller |
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| 51 | + | shall adopt an adjusted tax rate of zero percent. |
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| 52 | + | (f) An action taken by the comptroller under this section is |
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| 53 | + | final and may not be appealed. |
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| 54 | + | (g) The comptroller shall adopt rules to implement this |
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| 55 | + | section. |
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| 56 | + | SECTION 3. The comptroller of public accounts shall study |
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| 57 | + | and report to the legislature on the impact of this Act on the rate |
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| 58 | + | of the state sales and use tax and what further reductions in the |
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| 59 | + | rate of the state sales and use tax may be made following a review of |
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| 60 | + | existing exemptions from the state sales and use tax. The |
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| 61 | + | comptroller shall provide the report to the legislature not later |
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| 62 | + | than December 31, 2016. |
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| 63 | + | SECTION 4. The change in law made by this Act does not |
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