TAX CODE
CHAPTER 324. COUNTY HEALTH SERVICES SALES AND USE TAX
SUBCHAPTER A. GENERAL PROVISIONS
§ 324.001. COUNTY SALES AND USE TAX ACT
APPLICABLE. Except to the extent that a provision of this chapter
applies, 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.
Added by Acts 1989, 71st Leg., 1st C.S., ch. 40, § 7, eff. Sept.
1, 1989.
SUBCHAPTER B. IMPOSITION OF TAX
§ 324.021. TAX AUTHORIZED. (a) A county having a
population of 50,000 or less may adopt or abolish the sales and use
tax authorized by this chapter at an election held in the county.
(b) A county may not adopt a tax under this chapter if as a
result of the adoption of the tax the combined rate of all sales and
use taxes imposed by the county and other political subdivisions of
this state having territory in the county would exceed two percent
at any location in the county.
(c) If the voters of a county approve the adoption of the tax
at an election held on the same election date on which another
political subdivision adopts a sales and use tax or approves the
increase in the rate of its sales and use tax and as a result the
combined rate of all sales and use taxes imposed by the county and
other political subdivisions of this state having territory in the
county would exceed two percent at any location in the county, the
election to adopt a sales and use tax under this chapter has no
effect.
Added by Acts 1989, 71st Leg., 1st C.S., ch. 40, § 7, eff. Sept.
1, 1989.
§ 324.022. TAX RATE. The rate of the tax authorized by
this chapter is one-half percent.
Added by Acts 1989, 71st Leg., 1st C.S., ch. 40, § 7, eff. Sept.
1, 1989.
§ 324.023. SALES AND USE TAX EFFECTIVE DATE. (a) The
adoption or abolition of the tax takes effect on the first day of
the first calendar quarter occurring after the expiration of the
first complete calendar quarter occurring after the date on which
the comptroller receives a notice of the results of the election.
(b) If the comptroller determines that an effective date
provided by Subsection (a) will occur before the comptroller can
reasonably take the action required to begin collecting the tax or
to implement the abolition of the tax, the effective date may be
extended by the comptroller until the first day of the next
succeeding calendar quarter.
Added by Acts 1989, 71st Leg., 1st C.S., ch. 40, § 7, eff. Sept.
1, 1989.
SUBCHAPTER C. TAX ELECTION PROCEDURES
§ 324.061. ELECTION PROCEDURE. (a) An election to
adopt or abolish the tax authorized by this chapter is called by the
adoption of an order by the commissioners court of the county. The
commissioners court shall call an election if a number of qualified
voters of the county equal to at least five percent of the number of
registered voters in the county petitions the commissioners court
to call the election.
(b) 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-half percent to provide revenue for health services in the
county."
(c) At an election to abolish the tax, the ballot shall be
prepared to permit voting for or against the proposition: "The
abolition of the local health services sales and use tax in (name of
county)."
Added by Acts 1989, 71st Leg., 1st C.S., ch. 40, § 7, eff. Sept.
1, 1989.
SUBCHAPTER D. USE OF TAX REVENUE
§ 324.081. USE OF TAX REVENUE. Revenue from the tax
imposed under this chapter may be used only to provide health
services in the county. The county imposing the tax may allocate
all or part of that revenue to:
(1) a county hospital authority or a hospital district
having the same boundaries as the county; or
(2) a public health district in which the county
participates.
Added by Acts 1989, 71st Leg., 1st C.S., ch. 40, § 7, eff. Sept.
1, 1989.
