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H.B. No. 132
AN ACT
relating to the rate of the county health services sales and use
tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 324.021, Tax Code, is amended to read as
follows:
Sec. 324.021. TAX AUTHORIZED. (a) A county having a
population of 50,000 or less may adopt, increase, decrease, or
abolish the sales and use tax authorized by this chapter at an
election held in the county.
(b) A county may not adopt or increase a tax under this
chapter if as a result of the adoption of or increase in 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 or the
increase in 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 or increase the tax has no effect.
SECTION 2. Section 324.022, Tax Code, is amended to read as
follows:
Sec. 324.022. TAX RATE. (a) The [rate of the] tax
authorized by this chapter may be imposed at the rate of one-half,
five-eighths, three-fourths, seven-eighths, or one [is one-half]
percent.
(b) The rate may be reduced in one or more increments of
one-eighth of one percent to a minimum of one-half of one percent or
increased in one or more increments of one-eighth of one percent to
a maximum of one percent, or the tax may be abolished.
SECTION 3. Section 324.023, Tax Code, is amended to read as
follows:
Sec. 324.023. SALES AND USE TAX EFFECTIVE DATE. (a) The
adoption, increase, decrease, 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 increase, decrease, or abolition of the tax, the
effective date may be extended by the comptroller until the first
day of the next succeeding calendar quarter.
SECTION 4. Section 324.061, Tax Code, is amended by
amending Subsections (a) and (b) and adding Subsection (b-1) to
read as follows:
(a) An election to adopt, increase, decrease, 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, five-eighths, three-fourths,
seven-eighths, or one, to be inserted as appropriate) [one-half]
percent to provide revenue for health services in the county."
(b-1) At an election to increase or decrease the tax, the
ballot shall be prepared to permit voting for or against the
proposition: "The (increase or decrease) of the local sales and use
tax in (name of county) to the rate of _________ (one-half,
five-eighths, three-fourths, seven-eighths, or one, to be inserted
as appropriate) percent to provide revenue for health services in
the county."
SECTION 5. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect on the 91st day after the last day of the
legislative session.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 132 was passed by the House on March
31, 2005, by the following vote: Yeas 147, Nays 0, 2 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 132 was passed by the Senate on May
19, 2005, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor