Texas 2025 - 89th Regular

Texas House Bill HB5252 Compare Versions

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

Old	New	Differences
1	1	89R11377 RDS-D
2	2	By: Shaheen H.B. No. 5252
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4	4
5	5
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the authority of a municipality to adopt, increase or
10	10	decrease the rate of, or repeal an additional sales and use tax for
11	11	property tax relief by ordinance or resolution of the governing
12	12	body of the municipality.
13	13	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	14	SECTION 1. Section 504.257(c), Local Government Code, is
15	15	amended to read as follows:
16	16	(c) If an authorizing municipality reduces the rate of an
17	17	additional sales and use tax under Chapter 321, Tax Code, to impose
18	18	a tax under this chapter for a limited period as provided by this
19	19	section, and the municipality does not [have an election to] change
20	20	the rate of the additional sales and use tax before the tax under
21	21	this chapter expires, on the date the tax under this chapter
22	22	expires, the rate of the municipality's additional sales and use
23	23	tax returns to the rate in effect immediately before the tax under
24	24	this chapter was adopted. [The municipality is not required to hold
25	25	an election under Chapter 321, Tax Code, to impose the additional
26	26	sales and use tax at that rate.]
27	27	SECTION 2. Section 504.260(a), Local Government Code, is
28	28	amended to read as follows:
29	29	(a) At an election held under Section 504.251 or 504.258,
30	30	the authorizing municipality may also allow the voters to vote on a
31	31	ballot proposition to limit the use of the sales and use tax to a
32	32	specific project. If an authorizing municipality elects to limit
33	33	the use of the tax to a specific project, in the ballot proposition
34	34	prescribed by Section 504.256 [or 504.261] a description of the
35	35	project shall be substituted for the words "new and expanded
36	36	business enterprises."
37	37	SECTION 3. Section 321.101(b), Tax Code, is amended to read
38	38	as follows:
39	39	(b) The governing body of a [A] municipality [that is not
40	40	disqualified] may by ordinance or resolution [, by a majority vote
41	41	of the qualified voters of the municipality voting at an election
42	42	held for that purpose,] adopt, increase or decrease the rate of, or
43	43	repeal an additional sales and use tax for the benefit of the
44	44	municipality in accordance with this chapter. [A municipality is
45	45	disqualified from adopting the additional sales and use tax if the
46	46	municipality:
47	47	[(1) is included within the boundaries of a rapid
48	48	transit authority created under Chapter 451, Transportation Code;
49	49	[(2) is included within the boundaries of a regional
50	50	transportation authority created under Chapter 452, Transportation
51	51	Code, by a principal municipality having a population of less than
52	52	1.1 million according to the most recent federal decennial census,
53	53	unless the municipality has a population of 400,000 or more and is
54	54	located in more than one county;
55	55	[(3) is wholly or partly located in a county that
56	56	contains territory within the boundaries of a regional
57	57	transportation authority created under Chapter 452, Transportation
58	58	Code, by a principal municipality having a population in excess of
59	59	1.1 million according to the most recent federal decennial census,
60	60	unless:
61	61	[(A) the municipality is a contiguous
62	62	municipality; or
63	63	[(B) the municipality is not included within the
64	64	boundaries of the authority and is located wholly or partly in a
65	65	county in which fewer than 250 persons are residents of both the
66	66	county and the authority according to the most recent federal
67	67	census; or
68	68	[(C) the municipality is not and on January 1,
69	69	1993, was not included within the boundaries of the authority; or
70	70	[(4) imposes a tax authorized by Chapter 453,
71	71	Transportation Code.]
72	72	SECTION 4. Section 321.1025(c), Tax Code, is amended to
73	73	read as follows:
74	74	(c) If the annexation is approved by the voters, the
75	75	governing body of the municipality shall repeal [election is to be
76	76	treated for all purposes as an election to abolish] the additional
77	77	sales and use tax in the municipality [and the tax is repealed] in
78	78	the manner provided by this chapter.
79	79	SECTION 5. Sections 321.404(a) and (b), Tax Code, are
80	80	amended to read as follows:
81	81	(a) In an election to adopt the tax, the ballot shall be
82	82	printed to provide for voting for or against the applicable
83	83	proposition: "A sales and use tax is adopted within the city at the
84	84	rate of _______ percent" (insert appropriate rate) [or "The
85	85	adoption of an additional sales and use tax within the city at the
86	86	rate of ________ percent to be used to reduce the property tax rate"
87	87	(insert appropriate rate)].
88	88	(b) In an election to repeal the tax, the ballot shall be
89	89	printed to provide for voting for or against the applicable
90	90	proposition: "The local sales and use tax within the city is
91	91	abolished [" or "The abolition of the additional sales and use tax
92	92	within the city]."
93	93	SECTION 6. Section 321.409(a), Tax Code, is amended to read
94	94	as follows:
95	95	(a) Notwithstanding any provisions of this code or other
96	96	state law, a municipality may by a combined ballot proposition
97	97	lower or repeal any municipal sales tax [, including the additional
98	98	sales tax for property tax relief,] and by the same proposition
99	99	raise or adopt any other municipal sales tax [, including the
100	100	additional sales tax for property tax relief].
101	101	SECTION 7. Section 323.101(e), Tax Code, is amended to read
102	102	as follows:
103	103	(e) If the voters of a county approve the adoption of a sales
104	104	and use tax at an election held on the same election date on which a
105	105	municipality having territory in the county adopts a sales and use
106	106	tax [or an additional sales and use tax] and as a result the
107	107	combined rate of all sales and use taxes imposed by the county and
108	108	other political subdivisions of this state having territory in the
109	109	county would exceed two percent at any location in the county, the
110	110	election to adopt a county sales and use tax has no effect.
111	111	SECTION 8. Section 453.151(a), Transportation Code, is
112	112	amended to read as follows:
113	113	(a) If the board determines that implementation of a mass
114	114	transit plan developed by the transit department is feasible, the
115	115	board shall order an election to approve a local sales and use tax
116	116	at the rate determined by the board under Section 453.401 [unless
117	117	the municipality that created the transit department imposes an
118	118	additional sales and use tax under Section 321.101(b), Tax Code].
119	119	SECTION 9. The following provisions are repealed:
120	120	(1) Section 504.261, Local Government Code;
121	121	(2) Sections 321.101(c), (d), and (e), Tax Code;
122	122	(3) Sections 321.401(d) and (e), Tax Code;
123	123	(4) Section 321.403(b), Tax Code;
124	124	(5) Section 321.404(c), Tax Code; and
125	125	(6) Section 453.151(b), Transportation Code.
126	126	SECTION 10. The changes in law made by this Act apply only
127	127	to the adoption, increase or decrease in the rate of, or repeal of
128	128	an additional sales and use tax for property tax relief by a
129	129	municipality under Chapter 321, Tax Code, on or after the effective
130	130	date of this Act.
131	131	SECTION 11. This Act takes effect September 1, 2025.