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.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1, 1987. Amended by Acts 1987, 70th Leg., 2nd C.S., ch. 54, Sec. 1, eff. Oct. 20, 1987; Acts 1989, 71st Leg., ch. 2, Sec. 14.14(a), eff. Aug. 28, 1989; Acts 1989, 71st Leg., ch. 489, Sec. 1, eff. Aug. 28, 1989; Acts 1991, 72nd Leg., ch. 184, Sec. 2, eff. May 24, 1991; Acts 1991, 72nd Leg., ch. 223, Sec. 1, eff. May 29, 1991; Acts 1993, 73rd Leg., ch. 320, Sec. 1, eff. May 28, 1993; Acts 1993, 73rd Leg., ch. 1031, Sec. 25, eff. Sept. 1, 1993; Acts 1997, 75th Leg., ch. 65, Sec. 1, eff. May 9, 1997; Acts 1997, 75th Leg., ch. 165, Sec. 30.264, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 705, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.73, eff. April 1, 2009.
Acts 2015, 84th Leg., R.S., Ch. 1122 (H.B. 3777), Sec. 1, eff. September 1, 2015.
Acts 2015, 84th Leg., R.S., Ch. 1246 (H.B. 157), Sec. 12, eff. September 1, 2015.

Source: Section 321.101 — Tax Authorized, https://statutes.­capitol.­texas.­gov/Docs/TX/htm/TX.­321.­htm#321.­101 (accessed May 25, 2024).

321.001
Short Title
321.002
Definitions
321.003
Other Portions of Tax Applicable
321.004
References to Sales or Use Tax
321.101
Tax Authorized
321.102
Effective Dates: New Tax, Tax Repeal, Boundary Change
321.103
Sales Tax
321.104
Use Tax
321.105
Residential Use of Gas and Electricity
321.106
Fire Control District Tax
321.107
Administration of Local Sales and Use Taxes Imposed by Other Governmental Entities
321.108
Municipal Crime Control and Prevention District Tax
321.201
Computation of Sales Taxes
321.202
Method of Reporting: Retailers Having Sales Below Taxable Amount
321.203
Consummation of Sale
321.204
Computation of Use Tax
321.205
Use Tax: Municipality in Which Use Occurs
321.206
Incidence of Additional Municipal Sales and Use Tax
321.207
Local Tax Inapplicable When No State Tax
321.208
State Exemptions Applicable
321.209
Transition Exemption: General Purpose Sales and Use Tax
321.210
Telecommunications Exemption
321.301
Comptroller to Collect and Administer Taxes
321.302
Comptroller’s Reporting Duties
321.303
Sales Tax Permits and Exemption and Resale Certificates
321.304
Discounts for Prepayment and Tax Collection
321.305
Penalties
321.306
Comptroller’s Rules
321.307
Delinquent Taxes: Limitations
321.308
Seizure and Sale of Property
321.309
Suit for Tax Collection
321.310
Disapproval of Municipal Suit
321.311
Judgments in Municipal Suit
321.312
Retention of Certain Municipal Sales Taxes
321.401
Calling of Election
321.402
Deadlines After Petition
321.403
Time of Election
321.404
Ballot Wording
321.405
Official Results of Election
321.406
Frequency of Election
321.407
Election Contest: Notice
321.408
Election Contest: Delayed Effective Date
321.409
Combined Municipal Sales Tax Ballot Propositions
321.501
Trust Account
321.502
Distribution of Trust Funds
321.503
State’s Share
321.504
Amounts Retained in Trust Account
321.505
Interest on Trust Account
321.506
Use of Tax Revenue by Municipality
321.507
Use of Additional Municipal Sales and Use Tax
321.508
Pledge of Tax Revenue
321.509
Tax Powers of Municipality Not Limited
321.510
Reallocation of Municipal or Local Governmental Entity Tax Revenue
321.1025
Annexation to Certain Regional Transportation Authorities
321.1045
Imposition of Sales and Use Tax in Certain Federal Military Installations
321.1055
Imposition of Fire Control or Crime Control District Tax on the Residential Use of Gas and Electricity
321.2091
Transition Exemption: Additional Municipal Sales and Use Tax
321.3022
Tax Information
321.3025
Disposition of Amount Erroneously Collected
321.5025
Distribution of Trust Funds to Defunding Municipality

Accessed:
May 25, 2024

§ 321.101’s source at texas​.gov