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.