Bill Text: TX HB4531 | 2023-2024 | 88th Legislature | Introduced
Bill Title: 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.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-03-22 - Referred to Ways & Means [HB4531 Detail]
Download: Texas-2023-HB4531-Introduced.html
| 88R12107 RDS-D | ||
| By: Schatzline | H.B. No. 4531 | |
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| 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. CALLING ELECTION. An election authorized by | ||
| this chapter is called by the adoption of an order by the | ||
| commissioners court. | ||
| 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 [ |
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| 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 [ |
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| additional sales and use tax under Section 321.101(b) [ |
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| 323 or 328 [ |
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| 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 [ |
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| sales and use tax, as applicable, for the year determined as | ||
| provided by Section 26.041 [ |
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| 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, 2024. | ||
| SECTION 5. (a) Except as provided by Subsection (b) of this | ||
| section, this Act takes effect September 1, 2023. | ||
| (b) Sections 26.012(1) and 31.01(i), Tax Code, as amended by | ||
| this Act, take effect January 1, 2024. | ||
