Texas 2021 - 87th Regular

Texas Senate Bill SB1803 Compare Versions

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

Old	New	Differences
1	1	87R5046 CJC-F
2	2	By: Johnson S.B. No. 1803
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the municipal sales and use tax for street maintenance;
8	8	authorizing an increase in the rate of a tax.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 327.003, Tax Code, is amended by
11	11	amending Subsections (b) and (c) and adding Subsections (b-1),
12	12	(c-1), and (d) to read as follows:
13	13	(b) Subject to Subsection (b-1), a [A] municipality may not
14	14	adopt a tax under this chapter or increase the rate of the tax if as
15	15	a result of the adoption of the tax or the increase in the rate of
16	16	the tax the combined rate of all sales and use taxes imposed by the
17	17	municipality and other political subdivisions of this state having
18	18	territory in the municipality would exceed two percent at any
19	19	location in the municipality.
20	20	(b-1) A municipality that is a member of a subregion of a
21	21	transportation authority governed by a board described in
22	22	Subchapter O, Chapter 452, Transportation Code, may not adopt a tax
23	23	under this chapter or increase the rate of the tax if as a result of
24	24	the adoption of the tax or the increase in the rate of the tax the
25	25	combined rate of all sales and use taxes imposed by the municipality
26	26	and other political subdivisions of this state having territory in
27	27	the municipality would exceed 2.25 percent at any location in the
28	28	municipality.
29	29	(c) Subject to Subsection (c-1), if [If] the voters of a
30	30	municipality approve the adoption of the tax or the increase in the
31	31	rate of the tax at an election held on the same election date on
32	32	which another political subdivision adopts a sales and use tax or
33	33	approves the increase in the rate of its sales and use tax and as a
34	34	result the combined rate of all sales and use taxes imposed by the
35	35	municipality and other political subdivisions of this state having
36	36	territory in the municipality would exceed two percent at any
37	37	location in the municipality, the election to adopt a sales and use
38	38	tax under this chapter has no effect.
39	39	(c-1) If the voters of a municipality described by
40	40	Subsection (b-1) approve the adoption of the tax or the increase in
41	41	the rate of the tax at an election held on the same election date on
42	42	which another political subdivision adopts a sales and use tax or
43	43	approves the increase in the rate of its sales and use tax and as a
44	44	result the combined rate of all sales and use taxes imposed by the
45	45	municipality and other political subdivisions of this state having
46	46	territory in the municipality would exceed 2.25 percent at any
47	47	location in the municipality, the election to adopt a sales and use
48	48	tax under this chapter has no effect.
49	49	(d) This subsection applies only to a municipality
50	50	described by Subsection (b-1) that adopts a tax under this chapter
51	51	at, or increases the rate of a tax under this chapter to, a rate
52	52	that, when added to all other sales and use taxes imposed by the
53	53	municipality and other political subdivisions of this state having
54	54	territory in the municipality, results in a combined sales and use
55	55	tax rate that exceeds two percent at any location in the
56	56	municipality. Notwithstanding any other law, the increment of the
57	57	rate imposed by the municipality under this chapter equal to the
58	58	increment by which the combined sales and use tax rate at a location
59	59	in the municipality's territory exceeds two percent is excluded for
60	60	purposes of any law other than a provision of this chapter in
61	61	computing the combined rate of all sales and use taxes imposed by
62	62	the municipality and other political subdivisions of this state
63	63	having territory in the municipality.
64	64	SECTION 2. Section 327.004, Tax Code, is amended to read as
65	65	follows:
66	66	Sec. 327.004. TAX RATE. The tax authorized by this chapter
67	67	may be imposed at any rate that is an increment of one-eighth of one
68	68	percent, that the municipality determines is appropriate, and that
69	69	would not result in a combined rate that exceeds the maximum
70	70	combined rate prescribed by Section 327.003(b) or (b-1), as
71	71	applicable.
72	72	SECTION 3. Section 327.006, Tax Code, is amended by adding
73	73	Subsection (c) to read as follows:
74	74	(c) This subsection applies only to a municipality
75	75	described by Section 327.003(b-1) that proposes to adopt the tax
76	76	authorized by this chapter at a rate that would result in a combined
77	77	rate in excess of two percent of all sales and use taxes imposed by
78	78	the municipality and other political subdivisions of this state
79	79	having territory in the municipality. In addition to the statement
80	80	required under Subsection (b), the ballot must include the
81	81	following statement: "If adopted, this proposition may result in a
82	82	combined local sales and use tax rate in (name of municipality) that
83	83	exceeds two percent."
84	84	SECTION 4. Section 327.0065, Tax Code, is amended by
85	85	amending Subsection (b) and adding Subsection (d) to read as
86	86	follows:
87	87	(b) A municipality that has adopted a sales and use tax
88	88	under this chapter may by ordinance increase the rate of the tax to
89	89	any rate that is an increment of one-eighth of one percent, that the
90	90	municipality determines is appropriate, and that would not result
91	91	in a combined rate that exceeds the maximum combined rate
92	92	prescribed by Section 327.003(b) or (b-1), as applicable, if the
93	93	increase is authorized at an election held in the municipality.
94	94	(d) This subsection applies only to a municipality
95	95	described by Section 327.003(b-1) that proposes to increase the
96	96	rate of the tax authorized by this chapter to a rate that would
97	97	result in a combined rate in excess of two percent of all sales and
98	98	use taxes imposed by the municipality and other political
99	99	subdivisions of this state having territory in the municipality.
100	100	In addition to the statement required under Subsection (c), the
101	101	ballot must include the following statement: "If adopted, this
102	102	proposition may result in a combined local sales and use tax rate in
103	103	(name of municipality) that exceeds two percent."
104	104	SECTION 5. Section 327.007(b), Tax Code, is amended to read
105	105	as follows:
106	106	(b) An election to reauthorize the tax is called and held in
107	107	the same manner as an election to adopt the tax under Section
108	108	327.006, except the ballot proposition shall be prepared to permit
109	109	voting for or against the proposition: "The reauthorization of the
110	110	local sales and use tax in (name of municipality) at the rate of
111	111	(insert appropriate rate) to continue providing revenue for
112	112	maintenance and repair of municipal streets. The tax expires on the
113	113	(insert "first day of the first calendar quarter occurring after
114	114	the fourth anniversary" or "last day of the first calendar quarter
115	115	occurring after the (insert[,] eighth[,] or 10th anniversary, as
116	116	applicable)") [anniversary] of the date of this election unless the
117	117	imposition of the tax is reauthorized."
118	118	SECTION 6. Section 327.008, Tax Code, is amended to read as
119	119	follows:
120	120	Sec. 327.008. USE OF TAX REVENUE. Revenue from the tax
121	121	imposed under this chapter may be used only to maintain and repair a
122	122	municipal:
123	123	(1) street or sidewalk; or
124	124	(2) water, wastewater, or stormwater system located in
125	125	the width of a way of a municipal street [streets or sidewalks
126	126	existing on the date of the election to adopt the tax].
127	127	SECTION 7. Sections 327.006(c) and 327.0065(d), Tax Code,
128	128	as added by this Act, and Section 327.007(b), Tax Code, as amended
129	129	by this Act, apply only to ballot language for an election ordered
130	130	on or after the effective date of this Act. Ballot language for an
131	131	election ordered before the effective date of this Act is governed
132	132	by the law in effect when the election was ordered.
133	133	SECTION 8. This Act takes effect immediately if it receives
134	134	a vote of two-thirds of all the members elected to each house, as
135	135	provided by Section 39, Article III, Texas Constitution. If this
136	136	Act does not receive the vote necessary for immediate effect, this
137	137	Act takes effect September 1, 2021.