| 1 | 1 | | 89R2736 JBD-D |
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| 2 | 2 | | By: Menéndez S.B. No. 178 |
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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 permissible uses of revenue attributable to the |
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| 10 | 10 | | municipal sales and use tax for street maintenance. |
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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 327.006(b), Tax Code, is amended to read |
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| 13 | 13 | | as follows: |
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| 14 | 14 | | (b) At an election to adopt the tax, the ballot shall be |
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| 15 | 15 | | prepared to permit voting for or against the proposition: "The |
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| 16 | 16 | | adoption of a local sales and use tax in (name of municipality) at |
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| 17 | 17 | | the rate of (insert appropriate rate) to provide revenue for |
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| 18 | 18 | | maintenance, [and] repair, and reconstruction of municipal streets |
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| 19 | 19 | | or sidewalks." |
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| 20 | 20 | | SECTION 2. Section 327.0065(c), Tax Code, is amended to |
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| 21 | 21 | | read as follows: |
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| 22 | 22 | | (c) The ballot for an election to increase the tax shall be |
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| 23 | 23 | | printed to permit voting for or against the proposition: "The |
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| 24 | 24 | | adoption of a local sales and use tax in (name of municipality) at |
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| 25 | 25 | | the rate of (insert appropriate rate) to provide revenue for |
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| 26 | 26 | | maintenance, [and] repair, and reconstruction of municipal streets |
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| 27 | 27 | | or sidewalks." |
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| 28 | 28 | | SECTION 3. Section 327.007(b), Tax Code, is amended to read |
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| 29 | 29 | | as follows: |
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| 30 | 30 | | (b) An election to reauthorize the tax is called and held in |
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| 31 | 31 | | the same manner as an election to adopt the tax under Section |
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| 32 | 32 | | 327.006, except the ballot proposition shall be prepared to permit |
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| 33 | 33 | | voting for or against the proposition: "The reauthorization of the |
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| 34 | 34 | | local sales and use tax in (name of municipality) at the rate of |
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| 35 | 35 | | (insert appropriate rate) to continue providing revenue for |
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| 36 | 36 | | maintenance, [and] repair, and reconstruction of municipal streets |
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| 37 | 37 | | or sidewalks. The tax expires on the (insert fourth, eighth, or |
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| 38 | 38 | | 10th) anniversary of the date of this election unless the |
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| 39 | 39 | | imposition of the tax is reauthorized." |
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| 40 | 40 | | SECTION 4. Section 327.008, Tax Code, is amended to read as |
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| 41 | 41 | | follows: |
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| 42 | 42 | | Sec. 327.008. USE OF TAX REVENUE. Revenue from the tax |
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| 43 | 43 | | imposed under this chapter may be used only to maintain, [and] |
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| 44 | 44 | | repair, and reconstruct municipal streets or sidewalks existing on |
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| 45 | 45 | | the date of the election to adopt the tax. |
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| 46 | 46 | | SECTION 5. Sections 327.006(b), 327.0065(c), and |
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| 47 | 47 | | 327.007(b), Tax Code, as amended by this Act, apply only to ballot |
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| 48 | 48 | | language for an election ordered on or after the effective date of |
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| 49 | 49 | | this Act. Ballot language for an election ordered before the |
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| 50 | 50 | | effective date of this Act is governed by the law in effect when the |
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| 51 | 51 | | election was ordered. |
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| 52 | 52 | | SECTION 6. This Act takes effect immediately if it receives |
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| 53 | 53 | | a vote of two-thirds of all the members elected to each house, as |
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| 54 | 54 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 55 | 55 | | Act does not receive the vote necessary for immediate effect, this |
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| 56 | 56 | | Act takes effect September 1, 2025. |
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