89R6018 RDS-D     By: Schatzline H.B. No. 4968       A BILL TO BE ENTITLED   AN ACT   relating to the substitution of a county sales and use tax for all   or a portion of property taxes imposed by certain counties;   authorizing the imposition of a tax.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subtitle C, Title 3, Tax Code, is amended by   adding Chapter 328 to read as follows:   CHAPTER 328. SALES AND USE TAX FOR PROPERTY TAX RELIEF IN CERTAIN   COUNTIES   SUBCHAPTER A. GENERAL PROVISIONS          Sec. 328.0001.  APPLICABILITY OF CHAPTER.  This chapter   applies only to a county with a population of 2.1 million or more   that contains at least two municipalities, each of which has a   population of 350,000 or more.          Sec. 328.0002. APPLICABILITY OF OTHER LAW.  (a)  Except as   otherwise provided by this chapter, Chapter 323 applies to the tax   authorized by this chapter in the same manner as that chapter   applies to the tax authorized by that chapter.          (b)  The following provisions do not apply to the tax   authorized by this chapter:                (1)  Section 323.101; and                (2)  Subchapter E, Chapter 323, and the other   provisions of Chapter 323 relating to an election.          Sec. 328.0003.  EFFECT ON COMBINED LOCAL TAX RATE.  The rate   of a county sales and use tax imposed under this chapter may not be   considered in determining the combined or overlapping rate in any   area of local sales and use taxes under this subtitle or another   law.   SUBCHAPTER B. IMPOSITION OF TAX          Sec. 328.0051.  TAX AUTHORIZED.  A county to which this   chapter applies may adopt or abolish the sales and use tax   authorized by this chapter at an election held in the county.          Sec. 328.0052.  TAX RATE. The rate of the tax authorized by   this chapter is one percent.          Sec. 328.0053.  SALES AND USE TAX EFFECTIVE DATE. The   adoption or abolition of the tax authorized by this chapter takes   effect on the next January 1 that is at least six months after the   date the comptroller receives notice of the results of the election   from the county.   SUBCHAPTER C. TAX ELECTION PROCEDURES          Sec. 328.0101.  ELECTION ORDER.  The commissioners court of   a county to which this chapter applies may order an election to   adopt or abolish the sales and use tax authorized by this chapter.          Sec. 328.0102.  ELECTION DATE.  An election under this   chapter must be held on the next uniform election date that occurs   after the date of the election order and that allows sufficient time   to comply with the requirements of other law.          Sec. 328.0103.  BALLOT.  (a)  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 county) at the rate of one percent to reduce the county   property tax rate."          (b)  At an election to abolish the tax, the ballot shall be   prepared to permit voting for or against the proposition:  "The   abolition of the one percent sales and use tax in (name of county)   used to reduce the county property tax rate."   SUBCHAPTER D. USE OF TAX REVENUE          Sec. 328.0151.  USE OF REVENUE.  Any amount derived by a   county from the sales and use tax under this chapter is additional   sales and use tax revenue for purposes of Section 26.041.          SECTION 2.  Section 26.012(1), Tax Code, is amended to read   as follows:                (1)  "Additional sales and use tax" means an additional   sales and use tax imposed by:                      (A)  a municipality [city] under Section   321.101(b);                      (B)  a county under Chapter 323 or 328; or                      (C)  a hospital district, other than a hospital   district:                            (i)  created on or after September 1, 2001,   that:                                  (a)  imposes the sales and use tax   under Subchapter I, Chapter 286, Health and Safety Code; or                                  (b)  imposes the sales and use tax   under Subchapter L, Chapter 285, Health and Safety Code; or                            (ii)  that imposes the sales and use tax   under Subchapter G, Chapter 1061, Special District Local Laws Code.          SECTION 3.  Section 31.01(i), Tax Code, is amended to read as   follows:          (i)  For a municipality [city or town] that imposes an   additional sales and use tax under Section 321.101(b) [of this   code], or a county that imposes a sales and use tax under Chapter   323 or 328 [of this code], the tax bill shall indicate the amount of   additional ad valorem taxes, if any, that would have been imposed on   the property if additional ad valorem taxes had been imposed in an   amount equal to the amount of revenue estimated to be collected from   the additional municipal [city] sales and use tax or from the county   sales and use tax, as applicable, for the year determined as   provided by Section 26.041 [of this code].          SECTION 4.  Sections 26.012(1) and 31.01(i), Tax Code, as   amended by this Act, apply only to ad valorem taxes that are imposed   for an ad valorem tax year that begins on or after January 1, 2026.          SECTION 5.  (a) Except as provided by Subsection (b) of this   section, this Act takes effect September 1, 2025.          (b)  Sections 26.012(1) and 31.01(i), Tax Code, as amended by   this Act, take effect January 1, 2026.