| 1 | 1 | | 88R8731 SRA-D |
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| 2 | 2 | | By: Dutton H.B. No. 3541 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to temporarily decreasing the rate of state sales and use |
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| 8 | 8 | | taxes under certain circumstances. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subchapter C, Chapter 151, Tax Code, is amended |
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| 11 | 11 | | by adding Section 151.0511 to read as follows: |
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| 12 | 12 | | Sec. 151.0511. TEMPORARY DECREASE IN TAX RATE; CONDITIONS. |
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| 13 | 13 | | (a) Using any available methods and revenue estimates, the |
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| 14 | 14 | | comptroller shall: |
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| 15 | 15 | | (1) determine the amount of the ending certification |
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| 16 | 16 | | balance for the state fiscal biennium ending August 31, 2023, that |
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| 17 | 17 | | is attributable to revenue during that state fiscal biennium from |
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| 18 | 18 | | the taxes imposed under this chapter; |
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| 19 | 19 | | (2) determine the amount, if any, of the estimated |
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| 20 | 20 | | ending certification balance for the state fiscal biennium ending |
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| 21 | 21 | | August 31, 2025, that is attributable to revenue during that state |
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| 22 | 22 | | fiscal biennium from the taxes imposed under this chapter if those |
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| 23 | 23 | | taxes are imposed at the tax rate provided by Section 151.051(b); |
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| 24 | 24 | | and |
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| 25 | 25 | | (3) if the amount determined under Subdivision (2) is |
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| 26 | 26 | | more than 50 percent of the amount determined under Subdivision |
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| 27 | 27 | | (1): |
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| 28 | 28 | | (A) determine the tax rate that, when substituted |
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| 29 | 29 | | for the tax rate described by Subdivision (2), results in the amount |
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| 30 | 30 | | determined under Subdivision (2) equaling 50 percent of the amount |
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| 31 | 31 | | determined under Subdivision (1); and |
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| 32 | 32 | | (B) publish the tax rate determined under |
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| 33 | 33 | | Paragraph (A) in the Texas Register and on the comptroller's |
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| 34 | 34 | | Internet website and provide notice of that tax rate to sales tax |
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| 35 | 35 | | permit holders. |
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| 36 | 36 | | (b) If the condition provided by Subsection (a)(3) is |
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| 37 | 37 | | satisfied, the rate of the sales tax and use tax under this chapter |
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| 38 | 38 | | applicable in the state fiscal biennium ending August 31, 2025, is |
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| 39 | 39 | | the rate determined under Subsection (a)(3)(A), notwithstanding |
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| 40 | 40 | | Section 151.051(b). |
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| 41 | 41 | | (c) This section expires December 1, 2025. |
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| 42 | 42 | | SECTION 2. This Act takes effect immediately if it receives |
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| 43 | 43 | | a vote of two-thirds of all the members elected to each house, as |
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| 44 | 44 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 45 | 45 | | Act does not receive the vote necessary for immediate effect, this |
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| 46 | 46 | | Act takes effect September 1, 2023. |
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