Texas 2023 - 88th Regular

Texas House Bill HB640 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	88R436 SRA-F
2	2	By: Johnson of Dallas H.B. No. 640
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	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 327.007, Tax Code, is amended by
10	10	amending Subsections (a) and (b) and adding Subsection (b-1) to
11	11	read as follows:
12	12	(a) Unless imposition of the sales and use tax authorized by
13	13	this chapter is reauthorized as provided by this section, the tax
14	14	expires on:
15	15	(1) the fourth anniversary of the date the tax
16	16	originally took effect under Section 327.005;
17	17	(2) the first day of the first calendar quarter
18	18	occurring after the fourth anniversary of the date the tax was last
19	19	reauthorized at an election under Subsection (b) [under this
20	20	section] if, at that election, the voters approved the imposition
21	21	of the tax for a period that expires on that anniversary;
22	22	[(2-a) if the tax is imposed in a municipality that is
23	23	intersected by two interstate highways, that has a population of
24	24	150,000 or more, and in which at least 66 percent of the voters
25	25	voting in each of the last two consecutive elections concerning the
26	26	adoption or reauthorization of the tax favored adoption or
27	27	reauthorization, and that tax has not expired as provided by
28	28	Subdivision (1) or (2) since the first of those two consecutive
29	29	elections, the last day of the first calendar quarter occurring
30	30	after the eighth anniversary of the date the tax was last
31	31	reauthorized under this section if, at that election, the voters
32	32	approved the imposition of the tax for a period that expires on that
33	33	anniversary instead of the period described by Subdivision (2);] or
34	34	(3) [if the tax is imposed in a general-law
35	35	municipality with a population of 10,000 or more surrounded
36	36	entirely by a municipality with a population of 1.3 million or
37	37	more,] the last day of the first calendar quarter occurring after
38	38	the 8th or 10th anniversary of the date the tax was last
39	39	reauthorized at an election under Subsection (b-1) [under this
40	40	section] if, at that election, the voters approved the imposition
41	41	of the tax for a period that expires on that anniversary instead of
42	42	the period described by Subdivision (2).
43	43	(b) An election to reauthorize the tax for a period of four
44	44	years is called and held in the same manner as an election to adopt
45	45	the tax under Section 327.006, except the ballot proposition shall
46	46	be prepared to permit voting for or against the proposition: "The
47	47	reauthorization of the local sales and use tax in (name of
48	48	municipality) at the rate of (insert appropriate rate) to continue
49	49	providing revenue for maintenance and repair of municipal streets.
50	50	The tax expires on the first day of the first calendar quarter
51	51	occurring after the fourth [(insert fourth, eighth, or 10th)]
52	52	anniversary of the date of this election unless the imposition of
53	53	the tax is reauthorized."
54	54	(b-1) This subsection applies only to a municipality in
55	55	which a majority of the voters voting in each of the last two
56	56	consecutive elections concerning the adoption or reauthorization
57	57	of the tax authorized by this chapter favored adoption or
58	58	reauthorization of the tax and in which the tax has not expired as
59	59	provided by Subsection (a) since the first of those two consecutive
60	60	elections. A municipality to which this subsection applies may
61	61	call an election to reauthorize the tax for a period of 8 or 10 years
62	62	instead of 4 years. The election is called and held in the same
63	63	manner as an election to adopt the tax under Section 327.006, except
64	64	the ballot proposition shall be prepared to permit voting for or
65	65	against the proposition: "The reauthorization of the local sales
66	66	and use tax in (name of municipality) at the rate of (insert
67	67	appropriate rate) to continue providing revenue for maintenance and
68	68	repair of municipal streets. The tax expires on the last day of the
69	69	first calendar quarter occurring after the (insert 8th or 10th
70	70	anniversary, as applicable) of the date of this election unless the
71	71	imposition of the tax is reauthorized."
72	72	SECTION 2. Section 327.008, Tax Code, is amended to read as
73	73	follows:
74	74	Sec. 327.008. USE OF TAX REVENUE. Revenue from the tax
75	75	imposed under this chapter may be used only to maintain and repair a
76	76	municipal:
77	77	(1) street or sidewalk; or
78	78	(2) water, wastewater, or stormwater system located in
79	79	the width of a way of a municipal street [streets or sidewalks
80	80	existing on the date of the election to adopt the tax].
81	81	SECTION 3. (a) The change in law made by this Act to Section
82	82	327.007(a), Tax Code, applies only to the expiration of a sales and
83	83	use tax under Chapter 327, Tax Code, that is adopted or reauthorized
84	84	on or after the effective date of this Act. The expiration of a
85	85	sales and use tax that was adopted or last reauthorized before the
86	86	effective date of this Act is governed by the law in effect
87	87	immediately before the effective date of this Act, and the former
88	88	law is continued in effect for that purpose.
89	89	(b) Section 327.007(b), Tax Code, as amended by this Act,
90	90	and Section 327.007(b-1), Tax Code, as added by this Act, apply only
91	91	to ballot language for an election ordered on or after the effective
92	92	date of this Act. Ballot language for an election ordered before the
93	93	effective date of this Act is governed by the law in effect on the
94	94	date the election was ordered.
95	95	SECTION 4. This Act takes effect immediately if it receives
96	96	a vote of two-thirds of all the members elected to each house, as
97	97	provided by Section 39, Article III, Texas Constitution. If this
98	98	Act does not receive the vote necessary for immediate effect, this
99	99	Act takes effect September 1, 2023.