Bill Text: TX HB1723 | 2017-2018 | 85th Legislature | Introduced


Bill Title: Relating to the allocation of certain surplus state revenue for periodic reductions in the state sales and use tax rates.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2017-03-06 - Referred to Appropriations [HB1723 Detail]

Download: Texas-2017-HB1723-Introduced.html
  85R8842 CJC-D
 
  By: Leach H.B. No. 1723
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the allocation of certain surplus state revenue for
  periodic reductions in the state sales and use tax rates.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter G, Chapter 403, Government Code, is
  amended by adding Section 403.108 to read as follows:
         Sec. 403.108.  SALES TAX REDUCTION FUND. (a) The sales tax
  reduction fund is a special fund in the state treasury outside the
  general revenue fund. The comptroller shall administer the fund.  
  The fund consists of:
               (1)  money transferred to the fund in accordance with
  Subsection (b);
               (2)  money deposited to the credit of the fund in
  accordance with Subsection (c); and
               (3)  interest earned on money in the fund.
         (b)  The comptroller shall transfer money to the fund as
  directed by the legislature in the General Appropriations Act or by
  other law.
         (c)  The comptroller shall deposit to the credit of the fund
  money that would be transferred to the economic stabilization fund
  under Subsections (b), (c), (d), and (e), Section 49-g, Article
  III, Texas Constitution, on the transfer dates described by
  Subsections (b) and (c) of that section, but for the limitation
  prescribed by Subsection (g) of that section.
         (d)  Money in the fund may be used only for a state sales tax
  reduction period under Section 151.051, Tax Code, and is not
  subject to appropriation unless transferred to the general revenue
  fund, or an account in the general revenue fund, as provided by that
  section.
         SECTION 2.  Section 151.051, Tax Code, is amended to read as
  follows:
         Sec. 151.051.  SALES TAX IMPOSED. (a)  A tax is imposed on
  each sale of a taxable item in this state at a rate determined by the
  comptroller as provided by this section.
         (b)  Except as provided by this section, the [The] sales tax
  rate is 6-1/4 percent of the sales price of the taxable item sold.
         (c)  Not later than the 90th day of each state fiscal year,
  the comptroller shall determine whether there are sufficient
  balances in the sales tax reduction fund so that 95 percent of the
  balances would equal or exceed the amount necessary to reimburse
  the general revenue fund for the estimated amount of state sales and
  use tax revenue the state would forgo if the state sales tax rate
  were reduced by at least one-tenth of one percent for a period of
  not less than two consecutive days.
         (d)  If the comptroller determines under Subsection (c) that
  95 percent of the balances in the sales tax reduction fund would
  support a reduction in the state sales tax rate for at least the
  period described by Subsection (c), the comptroller shall declare a
  reduced sales tax rate.  The comptroller shall determine the length
  of the period during which the sales tax rate will be reduced, and
  the reduced sales tax rate for that period, in a manner that
  provides for the greatest reduction in the sales tax rate for the
  longest period of time possible given the comptroller's
  determination of the fund's available balance under Subsection (c).  
  The reduced sales tax rate must be a rate that is a whole-number
  multiple of one-tenth of one percent lower than the tax rate
  otherwise provided by Subsection (b) and must take effect on the
  first day of a calendar quarter.
         (e)  The comptroller shall publish notice of the reduced
  state sales tax rate and the period during which the sales tax rate
  is reduced in the Texas Register, shall mail notice of the reduced
  sales tax rate to each permit holder, and may provide notice by
  other means the comptroller determines prudent.
         (f)  On the day after the last day of the period for which the
  state sales tax rate is reduced under this section, the comptroller
  shall calculate the positive difference between the estimated state
  sales and use tax revenue anticipated to be collected during the
  period for which the sales tax rate is reduced and the estimated
  state sales and use tax revenue that would be collected during the
  same period if the sales tax rate were not reduced during that
  period. Except as provided by Subsection (g), the comptroller
  shall transfer from the sales tax reduction fund to the general
  revenue fund an amount of money equal to the amount calculated as
  provided by this subsection.
         (g)  Before making the transfer required by Subsection (f),
  the comptroller shall determine what portion of the amount of money
  calculated as provided by that subsection would have been deposited
  to the credit of a dedicated account in the general revenue fund or
  to another fund under a provision of the constitution of this state
  approved by the voters of this state before, or under a general law
  in effect on, January 1, 2017, had the state sales tax rate not been
  reduced under Subsection (d). The comptroller shall transfer to
  the credit of each of those dedicated accounts and other funds the
  amount of money that would have been deposited to the account or
  fund had the sales tax rate not been reduced.
         (h)  The comptroller shall adopt rules to implement this
  section.
         SECTION 3.  Section 151.101, Tax Code, is amended by
  amending Subsection (b) and adding Subsection (c) to read as
  follows:
         (b)  The tax is at the same percentage rate as is provided by
  or determined under Section 151.051 [of this code] on the sales
  price of the taxable item.
         (c)  The comptroller shall include notice of a reduced state
  use tax rate and the period during which the use tax rate is reduced
  in each notice published, mailed, or otherwise provided under
  Section 151.051(e).
         SECTION 4.  This Act takes effect September 1, 2017.
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