Texas 2017 - 85th 1st C.S.

Texas House Bill HB301 Compare Versions

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

Old	New	Differences
1	1	85S10703 CJC-D
2	2	By: Krause H.B. No. 301
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the substitution of a local sales and use tax for
8	8	property taxes imposed by certain local governments; authorizing
9	9	the imposition of a tax.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Subtitle C, Title 3, Tax Code, is amended by
12	12	adding Chapter 328 to read as follows:
13	13	CHAPTER 328. SUPPLEMENTAL LOCAL SALES AND USE TAX
14	14	Sec. 328.001. DEFINITIONS. In this chapter:
15	15	(1) "Lost property tax revenue" means the estimated
16	16	amount of property tax revenue to be received by a qualifying local
17	17	government for the tax year in which that government adopts an
18	18	ordinance or order described by Subdivision (2)(A), multiplied by
19	19	1.08.
20	20	(2) "Qualifying local government" means a
21	21	municipality or county that:
22	22	(A) before June 30 of a year:
23	23	(i) adopts an ordinance or order providing
24	24	that, beginning January 1 of the following year, the local
25	25	government will not impose a property tax and instead elects to
26	26	impose a supplemental sales and use tax; and
27	27	(ii) forwards a certified copy of the
28	28	ordinance or order described by Subparagraph (i) to the
29	29	comptroller; or
30	30	(B) in a preceding year, adopted and forwarded to
31	31	the comptroller an ordinance or order described by Paragraph (A)
32	32	but has not subsequently adopted an ordinance or order abolishing
33	33	the supplemental sales and use tax imposed by the government.
34	34	(3) "Supplemental sales and use tax" means a sales and
35	35	use tax authorized by this chapter.
36	36	Sec. 328.002. APPLICABILITY OF OTHER LAW. (a) Except as
37	37	otherwise provided by this chapter:
38	38	(1) Chapter 321 applies to a supplemental sales and
39	39	use tax imposed by a municipality; and
40	40	(2) Chapter 323 applies to a supplemental sales and
41	41	use tax imposed by a county.
42	42	(b) The following provisions do not apply to a supplemental
43	43	sales and use tax:
44	44	(1) Sections 321.101 and 323.101;
45	45	(2) Subchapter E, Chapter 321, Subchapter E, Chapter
46	46	323, and the other provisions of Chapters 321 and 323 relating to an
47	47	election;
48	48	(3) Sections 321.506-321.508; and
49	49	(4) Section 323.505.
50	50	(c) A supplemental sales and use tax is not an additional
51	51	sales and use tax for purposes of Section 321.101 or any other law.
52	52	Sec. 328.003. TAX AUTHORIZED. (a) A qualifying local
53	53	government by adoption of an ordinance or order may adopt,
54	54	increase, reduce, or abolish the supplemental sales and use tax.
55	55	The tax is in addition to any other sales and use tax authorized by
56	56	law, but may only be imposed during a period during which the
57	57	qualifying local government does not impose a property tax.
58	58	(b) A qualifying local government is not required to call an
59	59	election to adopt, increase, reduce, or abolish the supplemental
60	60	sales and use tax.
61	61	Sec. 328.004. TAX RATE; INCREASE, REDUCTION, OR ABOLITION
62	62	OF TAX. (a) In the first year in which a qualifying local
63	63	government imposes the supplemental sales and use tax, the rate of
64	64	the tax is equal to a rate that, when applied to the estimated
65	65	cumulative sales price of the sale, use, storage, or other
66	66	consumption of taxable items within the local government during
67	67	that year, would produce an amount equal to the local government's
68	68	lost property tax revenue. The ordinance or order authorizing the
69	69	tax and adopted under Section 328.003 must specify the tax rate.
70	70	(b) A qualifying local government that imposes the
71	71	supplemental sales and use tax may by adoption of an ordinance or
72	72	order annually increase or reduce the rate of the tax in increments
73	73	of one-eighth of one percent. A reduction in the rate of the tax may
74	74	not impair any outstanding debt or other obligation payable from
75	75	the tax.
76	76	(c) A qualifying local government that imposes the
77	77	supplemental sales and use tax may by adoption of an ordinance or
78	78	order abolish the tax if there is no outstanding debt secured by the
79	79	tax.
80	80	(d) A certified copy of an ordinance or order described by
81	81	this section must be forwarded to the comptroller before June 30 of
82	82	the year preceding the January 1 on which the action approved in the
83	83	ordinance or order is to take effect.
84	84	Sec. 328.005. SALES AND USE TAX EFFECTIVE DATE. The
85	85	adoption, increase, reduction, or abolition of the supplemental
86	86	sales and use tax takes effect on the next January 1 that is at least
87	87	six months after the date the qualifying local government forwards
88	88	to the comptroller the copy of the ordinance or order adopting,
89	89	increasing, reducing, or abolishing the tax, as applicable.
90	90	Sec. 328.006. EFFECT ON COMBINED LOCAL TAX RATE. The rate
91	91	of a supplemental sales and use tax may not be considered for
92	92	purposes of determining the combined local tax rate in any area.
93	93	Sec. 328.007. USE OF TAX REVENUE. Revenue from a
94	94	supplemental sales and use tax is for the use and benefit of the
95	95	qualifying local government imposing the tax and may be used for any
96	96	purpose for which the general funds of that government may be used.
97	97	SECTION 2. This Act takes effect immediately if it receives
98	98	a vote of two-thirds of all the members elected to each house, as
99	99	provided by Section 39, Article III, Texas Constitution. If this
100	100	Act does not receive the vote necessary for immediate effect, this
101	101	Act takes effect December 1, 2017.