88R12107 RDS-D
By: Schatzline H.B. No. 4531
A BILL TO BE ENTITLED
AN ACT
relating to the substitution of a county sales and use tax for all
or a portion of property taxes imposed by certain counties;
authorizing the imposition of a tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle C, Title 3, Tax Code, is amended by
adding Chapter 328 to read as follows:
CHAPTER 328. SALES AND USE TAX FOR PROPERTY TAX RELIEF IN CERTAIN
COUNTIES
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 328.0001. APPLICABILITY OF CHAPTER. This chapter
applies only to a county with a population of 2.1 million or more
that contains at least two municipalities, each of which has a
population of 350,000 or more.
Sec. 328.0002. APPLICABILITY OF OTHER LAW. (a) Except as
otherwise provided by this chapter, Chapter 323 applies to the tax
authorized by this chapter in the same manner as that chapter
applies to the tax authorized by that chapter.
(b) The following provisions do not apply to the tax
authorized by this chapter:
(1) Section 323.101; and
(2) Subchapter E, Chapter 323, and the other
provisions of Chapter 323 relating to an election.
Sec. 328.0003. EFFECT ON COMBINED LOCAL TAX RATE. The rate
of a county sales and use tax imposed under this chapter may not be
considered in determining the combined or overlapping rate in any
area of local sales and use taxes under this subtitle or another
law.
SUBCHAPTER B. IMPOSITION OF TAX
Sec. 328.0051. TAX AUTHORIZED. A county to which this
chapter applies may adopt or abolish the sales and use tax
authorized by this chapter at an election held in the county.
Sec. 328.0052. TAX RATE. The rate of the tax authorized by
this chapter is one percent.
Sec. 328.0053. SALES AND USE TAX EFFECTIVE DATE. The
adoption or abolition of the tax authorized by this chapter takes
effect on the next January 1 that is at least six months after the
date the comptroller receives notice of the results of the election
from the county.
SUBCHAPTER C. TAX ELECTION PROCEDURES
Sec. 328.0101. CALLING ELECTION. An election authorized by
this chapter is called by the adoption of an order by the
commissioners court.
Sec. 328.0102. ELECTION DATE. An election under this
chapter must be held on the next uniform election date that occurs
after the date of the election order and that allows sufficient time
to comply with the requirements of other law.
Sec. 328.0103. BALLOT. (a) At an election to adopt the
tax, the ballot shall be prepared to permit voting for or against
the proposition: "The adoption of a local sales and use tax in
(name of county) at the rate of one percent to reduce the county
property tax rate."
(b) At an election to abolish the tax, the ballot shall be
prepared to permit voting for or against the proposition: "The
abolition of the one percent sales and use tax in (name of county)
used to reduce the county property tax rate."
SUBCHAPTER D. USE OF TAX REVENUE
Sec. 328.0151. USE OF REVENUE. Any amount derived by a
county from the sales and use tax under this chapter is additional
sales and use tax revenue for purposes of Section 26.041.
SECTION 2. Section 26.012(1), Tax Code, is amended to read
as follows:
(1) "Additional sales and use tax" means an additional
sales and use tax imposed by:
(A) a municipality [city] under Section
321.101(b);
(B) a county under Chapter 323 or 328; or
(C) a hospital district, other than a hospital
district:
(i) created on or after September 1, 2001,
that:
(a) imposes the sales and use tax
under Subchapter I, Chapter 286, Health and Safety Code; or
(b) imposes the sales and use tax
under Subchapter L, Chapter 285, Health and Safety Code; or
(ii) that imposes the sales and use tax
under Subchapter G, Chapter 1061, Special District Local Laws Code.
SECTION 3. Section 31.01(i), Tax Code, is amended to read as
follows:
(i) For a municipality [city or town] that imposes an
additional sales and use tax under Section 321.101(b) [of this
code], or a county that imposes a sales and use tax under Chapter
323 or 328 [of this code], the tax bill shall indicate the amount of
additional ad valorem taxes, if any, that would have been imposed on
the property if additional ad valorem taxes had been imposed in an
amount equal to the amount of revenue estimated to be collected from
the additional municipal [city] sales and use tax or from the county
sales and use tax, as applicable, for the year determined as
provided by Section 26.041 [of this code].
SECTION 4. Sections 26.012(1) and 31.01(i), Tax Code, as
amended by this Act, apply only to ad valorem taxes that are imposed
for an ad valorem tax year that begins on or after January 1, 2024.
SECTION 5. (a) Except as provided by Subsection (b) of this
section, this Act takes effect September 1, 2023.
(b) Sections 26.012(1) and 31.01(i), Tax Code, as amended by
this Act, take effect January 1, 2024.