| 1 | 1 | | 2023S0293-T 03/10/23 |
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| 2 | 2 | | By: Schwertner S.B. No. 2435 |
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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 the imposition of sales and use tax after a municipality |
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| 8 | 8 | | annexes an area in an emergency services district. |
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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 E, Chapter 775, Health and Safety |
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| 11 | 11 | | Code, is amended by adding Section 775.0755 to read as follows: |
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| 12 | 12 | | Sec. 775.0755. SALES AND USE TAX AFTER CERTAIN ANNEXATIONS. |
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| 13 | 13 | | (a) This section applies when: |
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| 14 | 14 | | (1) a municipality annexes for full purposes part of a |
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| 15 | 15 | | district that imposes a sales and use tax; |
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| 16 | 16 | | (2) the annexed area is not removed from the district; |
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| 17 | 17 | | and |
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| 18 | 18 | | (3) the municipality intends to be the sole provider |
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| 19 | 19 | | of emergency services to the area. |
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| 20 | 20 | | (b) Section 321.102(f), Tax Code, does not apply to a |
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| 21 | 21 | | reduction of the tax rate of the district required by Section |
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| 22 | 22 | | 321.102(e) of that code. |
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| 23 | 23 | | (c) If an election is required for the annexation under |
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| 24 | 24 | | Chapter 43, Local Government Code, the ballot must include the |
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| 25 | 25 | | following language: "If the annexation is approved, a portion of |
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| 26 | 26 | | the sales and use tax previously collected by__________(insert name |
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| 27 | 27 | | of the district) will instead be collected by__________(insert name |
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| 28 | 28 | | of the municipality)." |
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| 29 | 29 | | SECTION 2. This Act takes effect September 1, 2023. |
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