Texas 2025 - 89th Regular

Texas House Bill HB4968 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R6018 RDS-D
2	2	By: Schatzline H.B. No. 4968
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the substitution of a county sales and use tax for all
10	10	or a portion of property taxes imposed by certain counties;
11	11	authorizing the imposition of a tax.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Subtitle C, Title 3, Tax Code, is amended by
14	14	adding Chapter 328 to read as follows:
15	15	CHAPTER 328. SALES AND USE TAX FOR PROPERTY TAX RELIEF IN CERTAIN
16	16	COUNTIES
17	17	SUBCHAPTER A. GENERAL PROVISIONS
18	18	Sec. 328.0001. APPLICABILITY OF CHAPTER. This chapter
19	19	applies only to a county with a population of 2.1 million or more
20	20	that contains at least two municipalities, each of which has a
21	21	population of 350,000 or more.
22	22	Sec. 328.0002. APPLICABILITY OF OTHER LAW. (a) Except as
23	23	otherwise provided by this chapter, Chapter 323 applies to the tax
24	24	authorized by this chapter in the same manner as that chapter
25	25	applies to the tax authorized by that chapter.
26	26	(b) The following provisions do not apply to the tax
27	27	authorized by this chapter:
28	28	(1) Section 323.101; and
29	29	(2) Subchapter E, Chapter 323, and the other
30	30	provisions of Chapter 323 relating to an election.
31	31	Sec. 328.0003. EFFECT ON COMBINED LOCAL TAX RATE. The rate
32	32	of a county sales and use tax imposed under this chapter may not be
33	33	considered in determining the combined or overlapping rate in any
34	34	area of local sales and use taxes under this subtitle or another
35	35	law.
36	36	SUBCHAPTER B. IMPOSITION OF TAX
37	37	Sec. 328.0051. TAX AUTHORIZED. A county to which this
38	38	chapter applies may adopt or abolish the sales and use tax
39	39	authorized by this chapter at an election held in the county.
40	40	Sec. 328.0052. TAX RATE. The rate of the tax authorized by
41	41	this chapter is one percent.
42	42	Sec. 328.0053. SALES AND USE TAX EFFECTIVE DATE. The
43	43	adoption or abolition of the tax authorized by this chapter takes
44	44	effect on the next January 1 that is at least six months after the
45	45	date the comptroller receives notice of the results of the election
46	46	from the county.
47	47	SUBCHAPTER C. TAX ELECTION PROCEDURES
48	48	Sec. 328.0101. ELECTION ORDER. The commissioners court of
49	49	a county to which this chapter applies may order an election to
50	50	adopt or abolish the sales and use tax authorized by this chapter.
51	51	Sec. 328.0102. ELECTION DATE. An election under this
52	52	chapter must be held on the next uniform election date that occurs
53	53	after the date of the election order and that allows sufficient time
54	54	to comply with the requirements of other law.
55	55	Sec. 328.0103. BALLOT. (a) At an election to adopt the
56	56	tax, the ballot shall be prepared to permit voting for or against
57	57	the proposition: "The adoption of a local sales and use tax in
58	58	(name of county) at the rate of one percent to reduce the county
59	59	property tax rate."
60	60	(b) At an election to abolish the tax, the ballot shall be
61	61	prepared to permit voting for or against the proposition: "The
62	62	abolition of the one percent sales and use tax in (name of county)
63	63	used to reduce the county property tax rate."
64	64	SUBCHAPTER D. USE OF TAX REVENUE
65	65	Sec. 328.0151. USE OF REVENUE. Any amount derived by a
66	66	county from the sales and use tax under this chapter is additional
67	67	sales and use tax revenue for purposes of Section 26.041.
68	68	SECTION 2. Section 26.012(1), Tax Code, is amended to read
69	69	as follows:
70	70	(1) "Additional sales and use tax" means an additional
71	71	sales and use tax imposed by:
72	72	(A) a municipality [city] under Section
73	73	321.101(b);
74	74	(B) a county under Chapter 323 or 328; or
75	75	(C) a hospital district, other than a hospital
76	76	district:
77	77	(i) created on or after September 1, 2001,
78	78	that:
79	79	(a) imposes the sales and use tax
80	80	under Subchapter I, Chapter 286, Health and Safety Code; or
81	81	(b) imposes the sales and use tax
82	82	under Subchapter L, Chapter 285, Health and Safety Code; or
83	83	(ii) that imposes the sales and use tax
84	84	under Subchapter G, Chapter 1061, Special District Local Laws Code.
85	85	SECTION 3. Section 31.01(i), Tax Code, is amended to read as
86	86	follows:
87	87	(i) For a municipality [city or town] that imposes an
88	88	additional sales and use tax under Section 321.101(b) [of this
89	89	code], or a county that imposes a sales and use tax under Chapter
90	90	323 or 328 [of this code], the tax bill shall indicate the amount of
91	91	additional ad valorem taxes, if any, that would have been imposed on
92	92	the property if additional ad valorem taxes had been imposed in an
93	93	amount equal to the amount of revenue estimated to be collected from
94	94	the additional municipal [city] sales and use tax or from the county
95	95	sales and use tax, as applicable, for the year determined as
96	96	provided by Section 26.041 [of this code].
97	97	SECTION 4. Sections 26.012(1) and 31.01(i), Tax Code, as
98	98	amended by this Act, apply only to ad valorem taxes that are imposed
99	99	for an ad valorem tax year that begins on or after January 1, 2026.
100	100	SECTION 5. (a) Except as provided by Subsection (b) of this
101	101	section, this Act takes effect September 1, 2025.
102	102	(b) Sections 26.012(1) and 31.01(i), Tax Code, as amended by
103	103	this Act, take effect January 1, 2026.