85R12051 CBH-D
By: Sheffield H.B. No. 3709
A BILL TO BE ENTITLED
AN ACT
relating to authorizing a county to impose a tax on the sale of
certain solid materials and substances.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle C, Title 3, Tax Code, is amended by
adding Chapter 329 to read as follows:
CHAPTER 329. COUNTY TAX ON SALE OF CERTAIN SOLID MATERIALS AND
SUBSTANCES
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 329.001. DEFINITIONS. In this chapter:
(1) "First sale" with respect to taxable material
means the first transfer of possession in connection with a
purchase, sale, or any exchange for value of taxable material.
(2) "Place of business of the seller" means the
location at which taxable materials are mined.
(3) "Seller" means a person engaged in the business of
making sales of taxable materials.
(4) "Taxable material" means clay, stone, sand,
gravel, aggregate, limestone, caliche, metalliferous and
nonmetalliferous ores, and other solid materials or substances of
commercial value excavated in solid form from natural deposits on
or in the earth. The term does not include coal or lignite.
SUBCHAPTER B. IMPOSITION OF TAX
Sec. 329.051. TAX AUTHORIZED. (a) A county by order may
impose a tax on the first sale of taxable material. Subsequent
sales of taxable material are not subject to the tax authorized by
this chapter.
(b) A sale of taxable material occurs in the county in which
the sale is consummated. A sale of taxable material is consummated
at the place of business of the seller regardless of:
(1) the place where the seller first receives the
order for the sale;
(2) the place from which the seller ships or delivers
the taxable material; or
(3) the place where transfer of title or possession
occurs.
Sec. 329.052. TAX RATE. (a) The county by order may impose
the tax authorized by this chapter at any rate not to exceed 15
cents for each ton or fraction of a ton of taxable material.
(b) A county by order may change the rate of the tax
authorized by this chapter to any rate that does not exceed the
maximum rate prescribed by Subsection (a).
Sec. 329.053. ABOLITION OF TAX. A county by order may
abolish a tax authorized by this chapter.
Sec. 329.054. EFFECTIVE DATE AND ENDING DATE OF TAX. The
imposition of the tax authorized by this chapter, a change in a tax
rate, or the abolition of the tax takes effect on the date
prescribed by the county order imposing the tax, changing the rate,
or abolishing the tax.
SUBCHAPTER C. COLLECTION AND ENFORCEMENT OF TAX
Sec. 329.101. DUTY TO COLLECT. (a) A county by order may
require the seller of taxable material to collect the tax
authorized by this chapter for the benefit of the county.
(b) A seller required to collect the tax shall add the tax to
the price of the taxable material and the tax is a part of the price
of the taxable material, a debt owed to the seller of the taxable
material by the person who purchased the taxable material, and
recoverable at law in the same manner as the price of the taxable
material.
Sec. 329.102. COLLECTION PROCEDURES. (a) A person
required to collect a tax authorized by this chapter shall report
and remit the tax to the county as provided by the county imposing
the tax.
(b) A county by order may prescribe penalties, including
interest charges, for failure to keep records required by the
county, to report when required, or to remit the tax when due. The
attorney acting for the county may bring suit against a person who
fails to collect the tax and to remit the tax to the county as
required.
(c) A county by order may permit a person who is required to
collect a tax under this chapter to retain a percentage of the
amount collected and required to be reported and remitted as
reimbursement to the person for the costs of collecting the tax.
The county may provide that the person may retain the amount only if
the person files reports and remits the tax as required by the
county.
SUBCHAPTER D. CLASSIFICATION OF TAX AND USE OF REVENUE
Sec. 329.151. NOT OCCUPATION TAX. The tax authorized by
this chapter is not an occupation tax on the person that mines the
taxable material or on the seller of the taxable material.
Sec. 329.152. USE OF REVENUE. A county may use revenue from
the tax authorized by this chapter only to operate, maintain, and
improve county roads.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2017.