Bill Text: TX HB157 | 2015-2016 | 84th Legislature | Enrolled


Bill Title: Relating to the rates of sales and use taxes imposed by municipalities; authorizing an increase or decrease in the rate of those taxes.

Spectrum: Partisan Bill (Republican 3-0)

Status: (Passed) 2015-06-20 - Effective on 9/1/15 [HB157 Detail]

Download: Texas-2015-HB157-Enrolled.html
 
 
  H.B. No. 157
 
 
 
 
AN ACT
  relating to the rates of sales and use taxes imposed by
  municipalities; authorizing an increase or decrease in the rate of
  those taxes.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 334.082(d), Local Government Code, is
  amended to read as follows:
         (d)  The tax imposed by this subchapter is in addition to a
  tax imposed under other law, including Chapters 321 and 323, Tax
  Code, and is included in computing a combined sales and use tax rate
  for purposes of the limitation on the maximum combined sales and use
  tax rate of political subdivisions.
         SECTION 2.  Section 334.083(a), Local Government Code, is
  amended to read as follows:
         (a)  The rate of a tax adopted by a county under this
  subchapter must be one-eighth, one-fourth, three-eighths, or
  one-half of one percent. The rate of the tax adopted by a
  municipality may be any rate that is an increment of one-eighth of
  one percent, that the municipality determines is appropriate, and
  that would not result in a combined rate that exceeds the maximum
  combined rate prescribed by Section 321.101(f), Tax Code.
         SECTION 3.  Section 334.084, Local Government Code, is
  amended to read as follows:
         Sec. 334.084.  RATE INCREASE. (a) A municipality [or
  county] that has adopted a sales and use tax under this subchapter
  at any rate, and a county that has adopted a sales and use tax under
  this subchapter at a rate of less than one-half of one percent, may
  by ordinance or order increase the rate of the tax if the increase
  is approved by a majority of the registered voters of that
  municipality or county voting at an election called and held for
  that purpose.
         (b)  The county tax may be increased under Subsection (a) in
  one or more increments of one-eighth of one percent to a maximum of
  one-half of one percent. The municipal tax may be increased under
  Subsection (a) in one or more increments of one-eighth of one
  percent to any rate that the municipality determines is appropriate
  and that would not result in a combined rate that exceeds the
  maximum combined rate prescribed by Section 321.101(f), Tax Code.
         (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 sales and use tax for the purpose of financing _______
  (insert description of venue project) at the rate of _______ [of
  one] percent (insert [one-fourth, three-eighths, or one-half, as]
  appropriate rate)."
         SECTION 4.  Section 363.055(a), Local Government Code, is
  amended to read as follows:
         (a)  The proposed rate for the district sales and use tax
  imposed under Subchapter B, Chapter 321, Tax Code, may be any rate
  that is an increment of one-eighth of one percent, that the
  municipality determines is appropriate, and that would not result
  in a combined rate that exceeds the maximum combined rate
  prescribed by Section 321.101(f), Tax Code. The proposed rate for
  the district sales and use tax imposed under [Subchapter B, Chapter
  321, Tax Code, or] Subchapter B, Chapter 323, Tax Code, may be only:
               (1)  one-eighth of one percent;
               (2)  one-fourth of one percent;
               (3)  three-eighths of one percent; or
               (4)  one-half of one percent.
         SECTION 5.  Section 504.252(b), Local Government Code, is
  amended to read as follows:
         (b)  The rate of the tax imposed under Subsection (a) may be
  any rate that is an increment of one-eighth of one percent, that the
  authorizing municipality determines is appropriate, and that would
  not result in a combined rate that exceeds the maximum combined rate
  prescribed by Section 504.254(a) [must be equal to one-eighth,
  one-fourth, three-eighths, or one-half of one percent].
         SECTION 6.  Section 504.256, Local Government Code, is
  amended to read as follows:
         Sec. 504.256.  BALLOT. In an election to adopt the sales and
  use tax under this chapter, the ballot shall be printed to provide
  for voting for or against the proposition:  "The adoption of a
  sales and use tax for the promotion and development of new and
  expanded business enterprises at the rate of __________ [of one]
  percent" (insert [one-eighth, one-fourth, three-eighths, or
  one-half to be inserted as] appropriate rate).
         SECTION 7.  Section 504.258(c), Local Government Code, is
  amended to read as follows:
         (c)  The tax rate may be reduced or increased to any rate that
  is an increment of one-eighth of one percent, that the authorizing
  municipality determines is appropriate, and that would not result
  in a combined rate that exceeds the maximum combined rate
  prescribed by Section 504.254(a)[:
               [(1)     reduced in one or more increments of one-eighth
  of one percent, to a minimum rate of one-eighth of one percent; or
               [(2)     increased in one or more increments of one-eighth
  of one percent, to a maximum rate of one-half of one percent].
         SECTION 8.  Section 504.261(b), Local Government Code, is
  amended to read as follows:
         (b)  In an election to impose, reduce, increase, or abolish
  the tax under this chapter and the additional sales and use tax, the
  ballot shall be printed to provide for voting for or against the
  proposition:  "The adoption of a sales and use tax within the
  municipality for the promotion and development of new and expanded
  business enterprises at the rate of __________ [of one] percent
  (insert [one-eighth, one-fourth, three-eighths, or one-half to be
  inserted as] appropriate rate) and the adoption of an additional
  sales and use tax within the municipality at the rate of __________
  [of one] percent to be used to reduce the property tax rate" (insert
  [one-eighth, one-fourth, three-eighths, or one-half to be inserted
  as] appropriate rate).
         SECTION 9.  Section 505.252(b), Local Government Code, is
  amended to read as follows:
         (b)  The rate of a tax adopted under this chapter may be any
  rate that is an increment of one-eighth of one percent, that the
  authorizing municipality determines is appropriate, and that would
  not result in a combined rate that exceeds the maximum combined rate
  prescribed by Section 505.256(a) [must be equal to one-eighth,
  one-fourth, three-eighths, or one-half of one percent].
         SECTION 10.  Section 505.256(a), Local Government Code, is
  amended to read as follows:
         (a)  Chapter 321, Tax Code, governs the imposition,
  computation, administration, collection, and remittance of the
  sales and use tax, except as inconsistent with this chapter. An
  authorizing municipality may not adopt a rate under this chapter
  that, when added to the rates of all other sales and use taxes
  imposed by the authorizing municipality and other political
  subdivisions of this state having territory in the authorizing
  municipality, would result in a combined rate exceeding two percent
  at any location in the municipality.
         SECTION 11.  Section 505.259, Local Government Code, is
  amended to read as follows:
         Sec. 505.259.  ELECTION REQUIREMENT FOR CERTAIN
  MUNICIPALITIES. For a tax under this subchapter at a rate that does
  not exceed one-half of one percent, the [The] election requirement
  under Section 505.251 is satisfied and another election is not
  required if the voters of the authorizing municipality approved the
  imposition of an additional one-half cent sales and use tax at an
  election held before March 28, 1991, under an ordinance calling the
  election that:
               (1)  was published in a newspaper of general
  circulation in the municipality at least 14 days before the date of
  the election; and
               (2)  expressly stated that the election was being held
  in anticipation of the enactment of enabling and implementing
  legislation without further elections.
         SECTION 12.  Section 321.101(a), Tax Code, is amended to
  read as follows:
         (a)  A municipality may adopt or repeal a sales and use tax
  authorized by this chapter, other than the additional municipal
  sales and use tax, and may reduce or increase the rate of the tax, at
  an election in which a majority of the qualified voters of the
  municipality approve the adoption, reduction, increase, or repeal
  of the tax.
         SECTION 13.  Section 321.102(a), Tax Code, is amended to
  read as follows:
         (a)  A tax imposed under this chapter, a tax rate increase or
  decrease adopted under this chapter, or the repeal of a tax
  abolished under this chapter takes effect on the first day of the
  first calendar quarter occurring after the expiration of the first
  complete calendar quarter occurring after the date on which the
  comptroller receives a notice of the action as required by Section
  321.405(b). This subsection does not apply to the additional
  municipal sales and use tax.
         SECTION 14.  Section 321.103, Tax Code, is amended to read as
  follows:
         Sec. 321.103.  SALES TAX. (a) In a municipality that has
  adopted the tax authorized by Section 321.101(a), there is imposed
  a tax on the receipts from the sale at retail of taxable items
  within the municipality at any [the] rate that is an increment of
  one-eighth of one percent, that the municipality determines is
  appropriate, that would not result in a combined rate that exceeds
  the maximum combined rate prescribed by Section 321.101(f), and
  that is approved by the voters.  The tax is imposed [of one percent
  and] at the same rate on the receipts from the sale at retail within
  the municipality of gas and electricity for residential use.
         (b)  In a municipality that has adopted the additional
  municipal sales and use tax, the tax is imposed at any [the] rate
  that is an increment of one-eighth of one percent, that the
  municipality determines is appropriate, that would not result in a
  combined rate that exceeds the maximum combined rate prescribed by
  Section 321.101(f), and that is approved by the voters. [The rate,
  when the tax is adopted, must be equal to either one-eighth,
  one-fourth, three-eighths, or one-half of one percent.] The rate
  may be reduced in one or more increments of one-eighth of one
  percent [to a minimum of one-eighth of one percent] or increased in
  one or more increments of one-eighth of one percent [to a maximum of
  one-half of one percent, or the tax may be abolished]. The rate
  that the municipality adopts is on the receipts from the sale at
  retail of all taxable items within the municipality and at the same
  rate on the receipts from the sale at retail within the municipality
  of gas and electricity for residential use unless the residential
  use of gas and electricity is exempted from the tax imposed under
  Section 321.101(a), in which case the residential use of gas and
  electricity is exempted under this subsection also.
         SECTION 15.  Section 321.108(d), Tax Code, is amended to
  read as follows:
         (d)  The rate of a tax adopted for a district under this
  section may be increased to any rate that is an increment [in
  increments] of one-eighth of one percent[, not to exceed a total tax
  rate of one-half percent] for financing the operation of the crime
  control and prevention district[,] by order of the board of
  directors of the crime control and prevention district if the board
  determines that the rate is appropriate, would not result in a
  combined rate that exceeds the maximum combined rate prescribed by
  Section 321.101(f), and is approved by a majority of the voters
  voting at an election called by the board and held in the district
  on the question of increasing the tax rate.  At the election, the
  ballot shall be printed to provide for voting for or against the
  following proposition:  "The increase of the ______________ Crime
  Control and Prevention District sales and use tax rate to
  ____________ percent." If there is an increase or decrease under
  this subsection in the rate of a tax imposed under this section, the
  new rate takes effect on the first day of the next calendar quarter
  after the expiration of one calendar quarter after the comptroller
  receives notice of the increase or decrease.  However, if the
  comptroller notifies the president of the board of directors of the
  district in writing within 10 days after receipt of the
  notification that the comptroller requires more time to implement
  reporting and collection procedures, the comptroller may delay
  implementation of the rate change for another calendar quarter, and
  the new rate takes effect on the first day of the next calendar
  quarter following the elapsed quarter.
         SECTION 16.  Section 321.404, Tax Code, is amended by
  amending Subsections (a) and (c) and adding Subsection (d) to read
  as follows:
         (a)  In an election to adopt the tax, the ballot shall be
  printed to provide for voting for or against the applicable
  proposition: "A [one percent] sales and use tax is adopted within
  the city at the rate of _______ percent" (insert appropriate rate)
  or "The adoption of an additional sales and use tax within the city
  at the rate of ________ [of one] percent to be used to reduce the
  property tax rate" (insert [one-eighth, one-fourth, three-eighths,
  or one-half to be inserted as] appropriate rate).
         (c)  In a municipality that does not impose a property tax,
  the ballot at an election to adopt the additional municipal sales
  and use tax shall be printed to provide for voting for or against
  the following proposition: "The adoption of an additional sales
  and use tax within the city at the rate of ________ [of one]
  percent" (insert [one-eighth, one-fourth, three-eighths, or
  one-half to be inserted as] appropriate rate).
         (d)  In an election to reduce or increase the tax, the ballot
  shall be printed to provide for 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)."
         SECTION 17.  Section 321.405(a), Tax Code, is amended to
  read as follows:
         (a)  Within 10 days after an election in which the voters
  approve of the adoption, change in rate, or abolition of a tax
  authorized by this chapter, the governing body of the municipality
  shall by resolution or ordinance entered in its minutes of
  proceedings, declare the results of the election. A resolution or
  ordinance under this section must include statements showing:
               (1)  the date of the election;
               (2)  the proposition on which the vote was held;
               (3)  the total number of votes cast for and against the
  proposition; and
               (4)  the number of votes by which the proposition was
  approved.
         SECTION 18.  Section 327.004, Tax Code, is amended to read as
  follows:
         Sec. 327.004.  TAX RATE. The tax authorized by this chapter
  may be imposed at any rate that is an increment of one-eighth of one
  percent, that the municipality determines is appropriate, and that
  would not result in a combined rate that exceeds the maximum
  combined rate prescribed by Section 327.003(b) [the rate of
  one-eighth of one percent or one-fourth of one percent].
         SECTION 19.  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 [one-eighth of one percent or
  one-fourth of one percent]) to provide revenue for maintenance and
  repair of municipal streets."
         SECTION 20.  Section 327.0065, Tax Code, is amended to read
  as follows:
         Sec. 327.0065.  RATE CHANGE. (a) A municipality that has
  adopted a sales and use tax under this chapter [at a rate of
  one-fourth of one percent] may by ordinance decrease the rate of the
  tax in increments of [to] one-eighth of one percent.
         (b)  A municipality that has adopted a sales and use tax
  under this chapter [at a rate of one-eighth of one percent] may by
  ordinance increase the rate of the tax to any rate that is an
  increment of one-eighth of one percent, that the municipality
  determines is appropriate, and that would not result in a combined
  rate that exceeds the maximum combined rate prescribed by Section
  327.003(b) [to one-fourth of one percent] if the increase is
  authorized at an election held in the municipality.
         (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) [one-fourth of one percent]
  to provide revenue for maintenance and repair of municipal
  streets."
         SECTION 21.  The changes in law made by this Act to Sections
  334.084(c), 504.256, and 504.261(b), Local Government Code, and
  Sections 321.404, 327.006(b), and 327.0065(c), Tax Code, 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 22.  This Act takes effect September 1, 2015.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 157 was passed by the House on April
  9, 2015, by the following vote:  Yeas 141, Nays 2, 2 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 157 was passed by the Senate on May
  20, 2015, by the following vote:  Yeas 26, Nays 4.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor       
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