Texas 2017 - 85th Regular

Texas House Bill HB1723 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	85R8842 CJC-D
2	2	By: Leach H.B. No. 1723
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the allocation of certain surplus state revenue for
8	8	periodic reductions in the state sales and use tax rates.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subchapter G, Chapter 403, Government Code, is
11	11	amended by adding Section 403.108 to read as follows:
12	12	Sec. 403.108. SALES TAX REDUCTION FUND. (a) The sales tax
13	13	reduction fund is a special fund in the state treasury outside the
14	14	general revenue fund. The comptroller shall administer the fund.
15	15	The fund consists of:
16	16	(1) money transferred to the fund in accordance with
17	17	Subsection (b);
18	18	(2) money deposited to the credit of the fund in
19	19	accordance with Subsection (c); and
20	20	(3) interest earned on money in the fund.
21	21	(b) The comptroller shall transfer money to the fund as
22	22	directed by the legislature in the General Appropriations Act or by
23	23	other law.
24	24	(c) The comptroller shall deposit to the credit of the fund
25	25	money that would be transferred to the economic stabilization fund
26	26	under Subsections (b), (c), (d), and (e), Section 49-g, Article
27	27	III, Texas Constitution, on the transfer dates described by
28	28	Subsections (b) and (c) of that section, but for the limitation
29	29	prescribed by Subsection (g) of that section.
30	30	(d) Money in the fund may be used only for a state sales tax
31	31	reduction period under Section 151.051, Tax Code, and is not
32	32	subject to appropriation unless transferred to the general revenue
33	33	fund, or an account in the general revenue fund, as provided by that
34	34	section.
35	35	SECTION 2. Section 151.051, Tax Code, is amended to read as
36	36	follows:
37	37	Sec. 151.051. SALES TAX IMPOSED. (a) A tax is imposed on
38	38	each sale of a taxable item in this state at a rate determined by the
39	39	comptroller as provided by this section.
40	40	(b) Except as provided by this section, the [The] sales tax
41	41	rate is 6-1/4 percent of the sales price of the taxable item sold.
42	42	(c) Not later than the 90th day of each state fiscal year,
43	43	the comptroller shall determine whether there are sufficient
44	44	balances in the sales tax reduction fund so that 95 percent of the
45	45	balances would equal or exceed the amount necessary to reimburse
46	46	the general revenue fund for the estimated amount of state sales and
47	47	use tax revenue the state would forgo if the state sales tax rate
48	48	were reduced by at least one-tenth of one percent for a period of
49	49	not less than two consecutive days.
50	50	(d) If the comptroller determines under Subsection (c) that
51	51	95 percent of the balances in the sales tax reduction fund would
52	52	support a reduction in the state sales tax rate for at least the
53	53	period described by Subsection (c), the comptroller shall declare a
54	54	reduced sales tax rate. The comptroller shall determine the length
55	55	of the period during which the sales tax rate will be reduced, and
56	56	the reduced sales tax rate for that period, in a manner that
57	57	provides for the greatest reduction in the sales tax rate for the
58	58	longest period of time possible given the comptroller's
59	59	determination of the fund's available balance under Subsection (c).
60	60	The reduced sales tax rate must be a rate that is a whole-number
61	61	multiple of one-tenth of one percent lower than the tax rate
62	62	otherwise provided by Subsection (b) and must take effect on the
63	63	first day of a calendar quarter.
64	64	(e) The comptroller shall publish notice of the reduced
65	65	state sales tax rate and the period during which the sales tax rate
66	66	is reduced in the Texas Register, shall mail notice of the reduced
67	67	sales tax rate to each permit holder, and may provide notice by
68	68	other means the comptroller determines prudent.
69	69	(f) On the day after the last day of the period for which the
70	70	state sales tax rate is reduced under this section, the comptroller
71	71	shall calculate the positive difference between the estimated state
72	72	sales and use tax revenue anticipated to be collected during the
73	73	period for which the sales tax rate is reduced and the estimated
74	74	state sales and use tax revenue that would be collected during the
75	75	same period if the sales tax rate were not reduced during that
76	76	period. Except as provided by Subsection (g), the comptroller
77	77	shall transfer from the sales tax reduction fund to the general
78	78	revenue fund an amount of money equal to the amount calculated as
79	79	provided by this subsection.
80	80	(g) Before making the transfer required by Subsection (f),
81	81	the comptroller shall determine what portion of the amount of money
82	82	calculated as provided by that subsection would have been deposited
83	83	to the credit of a dedicated account in the general revenue fund or
84	84	to another fund under a provision of the constitution of this state
85	85	approved by the voters of this state before, or under a general law
86	86	in effect on, January 1, 2017, had the state sales tax rate not been
87	87	reduced under Subsection (d). The comptroller shall transfer to
88	88	the credit of each of those dedicated accounts and other funds the
89	89	amount of money that would have been deposited to the account or
90	90	fund had the sales tax rate not been reduced.
91	91	(h) The comptroller shall adopt rules to implement this
92	92	section.
93	93	SECTION 3. Section 151.101, Tax Code, is amended by
94	94	amending Subsection (b) and adding Subsection (c) to read as
95	95	follows:
96	96	(b) The tax is at the same percentage rate as is provided by
97	97	or determined under Section 151.051 [of this code] on the sales
98	98	price of the taxable item.
99	99	(c) The comptroller shall include notice of a reduced state
100	100	use tax rate and the period during which the use tax rate is reduced
101	101	in each notice published, mailed, or otherwise provided under
102	102	Section 151.051(e).
103	103	SECTION 4. This Act takes effect September 1, 2017.