| 1 | 1 | | 89R12842 JBD-F |
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| 2 | 2 | | By: Reynolds H.B. No. 4248 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to the authority to impose municipal sales and use taxes; |
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| 10 | 10 | | authorizing an increase in the rate of a tax. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 321.101, Tax Code, is amended by |
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| 13 | 13 | | amending Subsections (b) and (f) and adding Subsection (f-1) to |
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| 14 | 14 | | read as follows: |
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| 15 | 15 | | (b) A municipality that is not disqualified may, by a |
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| 16 | 16 | | majority vote of the qualified voters of the municipality voting at |
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| 17 | 17 | | an election held for that purpose, adopt an additional sales and use |
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| 18 | 18 | | tax for the benefit of the municipality in accordance with this |
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| 19 | 19 | | chapter. A municipality is disqualified from adopting the |
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| 20 | 20 | | additional sales and use tax if the municipality: |
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| 21 | 21 | | (1) is included within the boundaries of a rapid |
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| 22 | 22 | | transit authority created under Chapter 451, Transportation Code; |
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| 23 | 23 | | (2) is included within the boundaries of a regional |
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| 24 | 24 | | transportation authority created under Chapter 452, Transportation |
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| 25 | 25 | | Code, by a principal municipality having a population of less than |
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| 26 | 26 | | 1.1 million according to the most recent federal decennial census, |
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| 27 | 27 | | unless the municipality has a population of 400,000 or more and is |
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| 28 | 28 | | located in more than one county; |
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| 29 | 29 | | (3) is wholly or partly located in a county that |
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| 30 | 30 | | contains territory within the boundaries of a regional |
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| 31 | 31 | | transportation authority created under Chapter 452, Transportation |
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| 32 | 32 | | Code, by a principal municipality having a population in excess of |
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| 33 | 33 | | 1.1 million according to the most recent federal decennial census, |
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| 34 | 34 | | unless: |
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| 35 | 35 | | (A) the municipality is a contiguous |
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| 36 | 36 | | municipality; [or] |
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| 37 | 37 | | (B) the municipality is not included within the |
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| 38 | 38 | | boundaries of the authority and is located wholly or partly in a |
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| 39 | 39 | | county in which fewer than 250 persons are residents of both the |
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| 40 | 40 | | county and the authority according to the most recent federal |
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| 41 | 41 | | census; [or] |
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| 42 | 42 | | (C) the municipality is not and on January 1, |
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| 43 | 43 | | 1993, was not included within the boundaries of the authority; or |
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| 44 | 44 | | (D) the municipality: |
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| 45 | 45 | | (i) has a population of more than 70,000; |
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| 46 | 46 | | and |
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| 47 | 47 | | (ii) is located in two counties, with 90 |
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| 48 | 48 | | percent of the municipality's territory located in a county with a |
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| 49 | 49 | | population of more than 800,000 and the remaining territory located |
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| 50 | 50 | | in a county with a population of more than four million; or |
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| 51 | 51 | | (4) imposes a tax authorized by Chapter 453, |
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| 52 | 52 | | Transportation Code. |
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| 53 | 53 | | (f) Subject to Subsection (f-1), a [A] municipality may not |
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| 54 | 54 | | adopt or increase a sales and use tax or an additional sales and use |
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| 55 | 55 | | tax under this section if as a result of the adoption or increase of |
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| 56 | 56 | | the tax the combined rate of all sales and use taxes imposed by the |
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| 57 | 57 | | municipality and other political subdivisions of this state having |
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| 58 | 58 | | territory in the municipality would exceed two percent at any |
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| 59 | 59 | | location in the municipality. |
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| 60 | 60 | | (f-1) A municipality described by Subsection (b)(3)(D) may |
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| 61 | 61 | | not adopt or increase a sales and use tax or an additional sales and |
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| 62 | 62 | | use tax under this section if as a result of the adoption or |
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| 63 | 63 | | increase of the tax the combined rate of all sales and use taxes |
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| 64 | 64 | | imposed by the municipality and other political subdivisions of |
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| 65 | 65 | | this state having territory in the municipality would exceed three |
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| 66 | 66 | | percent at any location in the municipality. |
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| 67 | 67 | | SECTION 2. This Act takes effect September 1, 2025. |
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