Tex.
Local Gov't Code Section 363.055
Sales Tax: Rate; Limitation; Municipal Authority
(a)
The proposed rate for the district sales and use tax imposed under Subchapter B (Tax Authorized), Chapter 321 (Municipal Sales and Use Tax Act), Tax Code, may be any rate that is an increment of one-eighth of one percent, that the municipality determines is appropriate, and that would not result in a combined rate that exceeds the maximum combined rate prescribed by Section 321.101 (Tax Authorized)(f), Tax Code. The proposed rate for the district sales and use tax imposed under Subchapter B (Tax Authorized), Chapter 323 (County Sales and Use Tax Act), Tax Code, may be only:(1)
one-eighth of one percent;(2)
one-fourth of one percent;(3)
three-eighths of one percent; or(4)
one-half of one percent.(b)
A sales and use tax approved under this chapter may be charged in addition to any other sales and use tax authorized by law and is included in computing a combined sales and use tax rate for purposes of any limitation provided by law on the maximum combined sales and use tax rate of political subdivisions.(c)
A municipality that creates a district shall adopt a sales and use tax under Section 321.108 (Municipal Crime Control and Prevention District Tax), Tax Code, for financing the operation of the district.
Source:
Section 363.055 — Sales Tax: Rate; Limitation; Municipal Authority, https://statutes.capitol.texas.gov/Docs/LG/htm/LG.363.htm#363.055 (accessed Jun. 5, 2024).
