Tex.
Tax Code Section 321.101
Tax Authorized
(a)
A municipality may adopt or repeal a sales and use tax authorized by this chapter, other than the additional municipal sales and use tax, and may reduce or increase the rate of the tax, at an election in which a majority of the qualified voters of the municipality approve the adoption, reduction, increase, or repeal of the tax.(b)
A municipality that is not disqualified may, by a majority vote of the qualified voters of the municipality voting at an election held for that purpose, adopt an additional sales and use tax for the benefit of the municipality in accordance with this chapter. A municipality is disqualified from adopting the additional sales and use tax if the municipality:(1)
is included within the boundaries of a rapid transit authority created under Chapter 451 (Metropolitan Rapid Transit Authorities), Transportation Code;(2)
is included within the boundaries of a regional transportation authority created under Chapter 452 (Regional Transportation Authorities), Transportation Code, by a principal municipality having a population of less than 1.1 million according to the most recent federal decennial census, unless the municipality has a population of 400,000 or more and is located in more than one county;(3)
is wholly or partly located in a county that contains territory within the boundaries of a regional transportation authority created under Chapter 452 (Regional Transportation Authorities), Transportation Code, by a principal municipality having a population in excess of 1.1 million according to the most recent federal decennial census, unless:(A)
the municipality is a contiguous municipality; or(B)
the municipality is not included within the boundaries of the authority and is located wholly or partly in a county in which fewer than 250 persons are residents of both the county and the authority according to the most recent federal census; or(C)
the municipality is not and on January 1, 1993, was not included within the boundaries of the authority; or(4)
imposes a tax authorized by Chapter 453 (Municipal Transit Departments), Transportation Code.(c)
For the purposes of Subsection (b), “principal municipality” and “contiguous municipality” have the meanings assigned by Section 452.001 (Definitions), Transportation Code.(d)
In any municipality in which an additional sales and use tax has been imposed, in the same manner and by the same procedure the municipality by majority vote of the qualified voters of the municipality voting at an election held for that purpose may reduce, increase, or abolish the additional sales and use tax.(e)
An authority created under Chapter 451 (Metropolitan Rapid Transit Authorities) or 452 (Regional Transportation Authorities), Transportation Code, is prohibited from imposing the tax provided for by those chapters if within the boundaries of the authority there is a municipality that has adopted the additional sales and use tax provided for by this section.(f)
A municipality may not adopt or increase a sales and use tax or an additional sales and use tax under this section if as a result of the adoption or increase 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.(g)
For the purposes of Subsection (f), “territory” in a municipality having a population of 5,000 or less and bordering on the Gulf of Mexico does not include any area covered by water and in which no person has a place of business to which a sales tax permit issued under Subchapter F (Sales Tax Permits) of Chapter 151 (Limited Sales, Excise, and Use Tax) applies.(h)
Expired.(i)
A municipality for which the adoption or increase of a sales and use tax approved by the voters in an election held after May 1, 1995, and before December 31, 1995, is invalid because the election combined into a single proposition proposal for adopting an economic development sales and use tax under Chapter 505 (Type B Corporations), Local Government Code, and an additional sales and use tax under Subsection (b) may adopt or increase the sales and use tax previously approved by the voters by ordinance or resolution of the governing body of the municipality. If the governing body of the municipality adopts or increases the sales and use tax under this subsection, the municipal secretary shall send to the comptroller by certified or registered mail a certified copy of the ordinance or resolution. The tax takes effect on the first day of the month following the expiration of the calendar quarter occurring after the date on which the comptroller receives the ordinance or resolution.
Source:
Section 321.101 — Tax Authorized, https://statutes.capitol.texas.gov/Docs/TX/htm/TX.321.htm#321.101 (accessed Apr. 20, 2024).
