TAX CODE
CHAPTER 327. MUNICIPAL SALES AND USE TAX FOR STREET MAINTENANCE
§ 327.001. DEFINITION. In this chapter, "municipal
street" means the entire width of a way held by a municipality in
fee or by easement or dedication that has a part open for public use
for vehicular travel. The term does not include a designated state
or federal highway or road or a designated county road.
Added by Acts 2001, 77th Leg., ch. 464, § 1, eff. June 11, 2001.
§ 327.002. MUNICIPAL SALES AND USE TAX ACT
APPLICABLE. Except to the extent that a provision of this chapter
applies, Chapter 321 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 2001, 77th Leg., ch. 464, § 1, eff. June 11, 2001.
§ 327.003. TAX AUTHORIZED. (a) A municipality may
adopt the sales and use tax authorized by this chapter at an
election held in the municipality.
(b) A municipality may not adopt a tax under this chapter or
increase the rate of the tax if as a result of the adoption of the
tax or the increase in the rate of the tax the combined rate of all
sales and use taxes imposed by the municipality and other political
subdivisions of this state having territory in the municipality
would exceed two percent at any location in the municipality.
(c) If the voters of a municipality approve the adoption of
the tax or the increase in the rate 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 municipality and other political
subdivisions of this state having territory in the municipality
would exceed two percent at any location in the municipality, the
election to adopt a sales and use tax under this chapter has no
effect.
Added by Acts 2001, 77th Leg., ch. 464, § 1, eff. June 11, 2001.
Amended by Acts 2003, 78th Leg., ch. 403, § 1, eff. June 20,
2003.
§ 327.004. TAX RATE. The tax authorized by this chapter
may be imposed at the rate of one-eighth of one percent or
one-fourth of one percent.
Added by Acts 2001, 77th Leg., ch. 464, § 1, eff. June 11, 2001.
Amended by Acts 2003, 78th Leg., ch. 403, § 2, eff. June 20,
2003.
§ 327.005. SALES AND USE TAX EFFECTIVE DATE. (a) The
adoption of the tax or the change in the rate 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 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,
the effective date may be extended by the comptroller until the
first day of the next succeeding calendar quarter.
Added by Acts 2001, 77th Leg., ch. 464, § 1, eff. June 11, 2001.
Amended by Acts 2003, 78th Leg., ch. 403, § 3, eff. June 20,
2003.
§ 327.006. ELECTION PROCEDURE. (a) An election to
adopt the tax authorized by this chapter is called by the adoption
of an ordinance by the governing body of the municipality.
(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 municipality) at
the rate of (insert one-eighth of one percent or one-fourth of one
percent) to provide revenue for maintenance and repair of municipal
streets."
Added by Acts 2001, 77th Leg., ch. 464, § 1, eff. June 11, 2001.
Amended by Acts 2003, 78th Leg., ch. 403, § 4, eff. June 20,
2003.
§ 327.0065. RATE CHANGE. (a) A municipality that has
adopted a sales and use tax under this chapter at a rate of
one-fourth of one percent may by ordinance decrease the rate of the
tax to one-eighth of one percent.
(b) A municipality that has adopted a sales and use tax
under this chapter at a rate of one-eighth of one percent may by
ordinance increase the rate of the tax to one-fourth of one percent
if the increase is authorized at an election held in the
municipality.
(c) The ballot for an election to increase the tax shall be
printed to permit voting for or against the proposition: "The
adoption of a local sales and use tax in (name of municipality) at
the rate of one-fourth of one percent to provide revenue for
maintenance and repair of municipal streets."
Added by Acts 2003, 78th Leg., ch. 403, § 5, eff. June 20, 2003.
§ 327.007. REAUTHORIZATION OF TAX. (a) Unless
imposition of the sales and use tax authorized by this chapter is
reauthorized as provided by this section, the tax expires on:
(1) the fourth anniversary of the date the tax
originally took effect under Section 327.005; or
(2) the first day of the first calendar quarter
occurring after the fourth anniversary of the date the tax was last
reauthorized under this section.
(b) An election to reauthorize the tax is called and held in
the same manner as an election to adopt the tax under Section
327.006, except the ballot proposition shall be prepared to permit
voting for or against the proposition: "The reauthorization of the
local sales and use tax in (name of municipality) at the rate of
(insert appropriate rate) to continue providing revenue for
maintenance and repair of municipal streets."
(c) If an election to reauthorize the tax is not held before
the tax expires as provided by Subsection (a), or if a majority of
the votes cast in an election to reauthorize the tax do not favor
reauthorization, the municipality may not call an election on the
question of authorizing a new tax under this chapter before the
first anniversary of the date on which the tax expired.
(d) Not later than the 10th day after the date the
municipality determines that the tax will expire as provided by
Subsection (a), the municipality shall notify the comptroller of
the scheduled expiration. The comptroller may delay the scheduled
expiration date if the comptroller notifies the municipality that
more time is required. The comptroller must provide a new
expiration date that is not later than the last day of the first
calendar quarter occurring after the notification to the
comptroller.
Added by Acts 2001, 77th Leg., ch. 464, § 1, eff. June 11, 2001.
Amended by Acts 2003, 78th Leg., ch. 403, § 6, eff. June 20,
2003.
§ 327.008. USE OF TAX REVENUE. Revenue from the tax
imposed under this chapter may be used only to maintain and repair
municipal streets existing on the date of the election to adopt the
tax.
Added by Acts 2001, 77th Leg., ch. 464, § 1, eff. June 11, 2001.
