89S21216 CJC-D     By: Barry H.B. No. 312       A BILL TO BE ENTITLED   AN ACT   relating to the authority of a municipality or county to impose a   supplemental local sales and use tax to provide additional revenue   for property tax relief and general governmental purposes if the   tax is approved by the voters; 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. SUPPLEMENTAL LOCAL SALES AND USE TAX   SUBCHAPTER A. GENERAL PROVISIONS          Sec. 328.0001.  DEFINITION. In this chapter, "supplemental   local sales and use tax" means a sales and use tax authorized by   this chapter.          Sec. 328.0002.  APPLICABILITY OF OTHER LAW. (a) Except as   otherwise provided by this chapter:                (1)  Chapter 321 applies to a supplemental local sales   and use tax imposed by a municipality; and                (2)  Chapter 323 applies to a supplemental local sales   and use tax imposed by a county.          (b)  The following provisions do not apply to a supplemental   local sales and use tax:                (1)  Sections 321.101 and 323.101;                (2)  Subchapter E, Chapter 321, Subchapter E, Chapter   323, and the other provisions of Chapters 321 and 323 relating to an   election;                (3)  Sections 321.506-321.508; and                (4)  Section 323.505.          Sec. 328.0003.  EFFECT ON COMBINED LOCAL TAX RATE. The rate   of a supplemental local sales and use tax may not be considered for   purposes of determining the combined local tax rate in any area.   SUBCHAPTER B. IMPOSITION OF TAX          Sec. 328.0051.  TAX AUTHORIZED. A municipality or county may   adopt or abolish a supplemental local sales and use tax at an   election held in the municipality or county.          Sec. 328.0052.  TAX RATE. A supplemental local sales and use   tax may be imposed at any rate that does not exceed one percent.          Sec. 328.0053.  SALES AND USE TAX EFFECTIVE DATE. The   adoption or abolition of a supplemental local sales and use tax   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 municipality or county, as applicable.   SUBCHAPTER C. TAX ELECTION PROCEDURES          Sec. 328.0101.  ELECTION ORDER. The governing body of a   municipality or county may order an election to adopt or abolish a   supplemental local sales and use tax.  The election order must   include the rate of the supplemental local sales and use tax.          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 municipality or county) at (rate of tax) to reduce the   property tax rate and provide additional revenue for general   governmental purposes."          (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 (rate of tax) local sales and use tax in (name of   municipality or county) used to reduce the property tax rate and   provide additional revenue for general governmental purposes."   SUBCHAPTER D. USE OF TAX REVENUE          Sec. 328.0151.  USE OF REVENUE.  Revenue from a supplemental   local sales and use tax shall be allocated as follows:                (1)  50 percent is additional sales and use tax revenue   of the municipality or county imposing the tax for purposes of   Section 26.041; and                (2)  the remainder is for the use and benefit of the   municipality or county imposing the tax and may be used for any   purpose for which the general funds of the municipality or county   may be used.          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) or Chapter 328;                      (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) or Chapter   328 [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 on the 91st day after the last day of   the legislative session.          (b)  Sections 26.012(1) and 31.01(i), Tax Code, as amended by   this Act, take effect January 1, 2026.