89R2736 JBD-D
By: Menéndez S.B. No. 178
A BILL TO BE ENTITLED
AN ACT
relating to the permissible uses of revenue attributable to the
municipal sales and use tax for street maintenance.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 327.006(b), Tax Code, is amended to read
as follows:
(b) At an election to adopt the tax, the ballot shall be
prepared to permit voting for or against the proposition: "The
adoption of a local sales and use tax in (name of municipality) at
the rate of (insert appropriate rate) to provide revenue for
maintenance, [and] repair, and reconstruction of municipal streets
or sidewalks."
SECTION 2. Section 327.0065(c), Tax Code, is amended to
read as follows:
(c) The ballot for an election to increase the tax shall be
printed to permit voting for or against the proposition: "The
adoption of a local sales and use tax in (name of municipality) at
the rate of (insert appropriate rate) to provide revenue for
maintenance, [and] repair, and reconstruction of municipal streets
or sidewalks."
SECTION 3. Section 327.007(b), Tax Code, is amended to read
as follows:
(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, and reconstruction of municipal streets
or sidewalks. The tax expires on the (insert fourth, eighth, or
10th) anniversary of the date of this election unless the
imposition of the tax is reauthorized."
SECTION 4. 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, and reconstruct municipal streets or sidewalks existing on
the date of the election to adopt the tax.
SECTION 5. Sections 327.006(b), 327.0065(c), and
327.007(b), Tax Code, as amended by this Act, apply 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 6. 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.