By: Parker S.B. No. 1277
(In the Senate - Filed February 14, 2025; February 28, 2025,
read first time and referred to Committee on Local Government;
March 31, 2025, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 5, Nays 0; March 31, 2025,
sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR S.B. No. 1277 By: Paxton
A BILL TO BE ENTITLED
AN ACT
relating to the municipal sales and use tax for street maintenance.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 327.007(a) and (b), Tax Code, are
amended to read as follows:
(a) Unless imposition of the sales and use tax authorized by
this chapter is reauthorized as provided by this section, the tax
expires on:
(1) the fourth anniversary of the date the tax
originally took effect under Section 327.005;
(2) the first day of the first calendar quarter
occurring after the fourth anniversary of the date the tax was last
reauthorized under this section if, at that election, the voters
approved the imposition of the tax for a period that expires on that
anniversary;
(2-a) if the tax is imposed in a municipality that is
intersected by two interstate highways, that has a population of
150,000 or more, and in which at least 66 percent of the voters
voting in each of the last two consecutive elections concerning the
adoption or reauthorization of the tax favored adoption or
reauthorization, and that tax has not expired as provided by
Subdivision (1) or (2) since the first of those two consecutive
elections, the last day of the first calendar quarter occurring
after the eighth anniversary of the date the tax was last
reauthorized under this section if, at that election, the voters
approved the imposition of the tax for a period that expires on that
anniversary instead of the period described by Subdivision (2);
(2-b) if the tax is imposed in a municipality with a
population of less than 50,000, that includes a portion of an
international airport, and that is located in only two counties,
one of which has a population of 2.2 million or more and is adjacent
to a county with a population of more than 600,000, the last day of
the first calendar quarter occurring after the 10th anniversary of
the date the tax was last reauthorized under this section if, at
that election, the voters approved the imposition of the tax for a
period that expires on that anniversary instead of the period
described by Subdivision (2); or
(3) if the tax is imposed in a municipality with a
population of more than 11,450 and less than 11,550, the last day of
the first calendar quarter occurring after the 10th anniversary of
the date the tax was last reauthorized under this section if, at
that election, the voters approved the imposition of the tax for a
period that expires on that anniversary instead of the period
described by Subdivision (2).
(b) An election to reauthorize the tax is called and held in
the same manner as an election to adopt the tax under Section
327.006, except the ballot proposition shall be prepared to permit
voting for or against the proposition: "The reauthorization of the
local sales and use tax in (name of municipality) at the rate of
(insert appropriate rate) to continue providing revenue for
maintenance and repair of municipal streets. The tax expires on the
(insert "first day of the first calendar quarter occurring after
the fourth anniversary" or "last day of the first calendar quarter
occurring after the (insert[,] eighth[,] or 10th anniversary, as
applicable)") [anniversary] of the date of this election unless the
imposition of the tax is reauthorized."
SECTION 2. Section 327.008, Tax Code, is amended to read as
follows:
Sec. 327.008. USE OF TAX REVENUE. Revenue from the tax
imposed under this chapter may be used only to maintain and repair a
municipal:
(1) street or sidewalk; or
(2) water, wastewater, or stormwater system located in
the width of a way of a municipal street [streets or sidewalks
existing on the date of the election to adopt the tax].
SECTION 3. The change in law made by this Act to Section
327.007(b), Tax Code, applies only to ballot language for an
election ordered on or after the effective date of this Act. Ballot
language for an election ordered before the effective date of this
Act is governed by the law in effect when the election was ordered.
SECTION 4. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2025.
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