Tex. Tax Code Section 321.102
Effective Dates: New Tax, Tax Repeal, Boundary Change


(a)

A tax imposed under this chapter, a tax rate increase or decrease adopted under this chapter, or the repeal of a tax abolished under this chapter 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 action as required by Section 321.405 (Official Results of Election)(b). This subsection does not apply to the additional municipal sales and use tax.

(b)

The additional municipal sales and use tax takes effect or is increased, reduced, or repealed in the municipality on the October 1st after the expiration of the first complete calendar quarter after the date on which the comptroller receives notice from the municipality of the adoption, increase, reduction, or repeal of the additional municipal sales and use tax.

(c)

If a municipality in which the tax imposed under this chapter is in effect changes its boundaries, the municipal secretary shall send by United States registered or certified mail to the comptroller a certified copy of the ordinance that adds or detaches municipal territory and that shows the effective date of the boundary change. The ordinance must be accompanied by a map clearly showing the added or detached territory. Except as provided by Subsection (d), the tax takes effect in the added territory or is inapplicable to the detached territory on the first day of the first calendar quarter after the comptroller receives the ordinance and map.

(d)

If, within 10 days after the receipt of an ordinance and map sent under Subsection (c), the comptroller notifies the secretary of the municipality that more time is required, the effective date of the application of the tax in the added or detached area is the first day of the first calendar quarter after the expiration of the first complete calendar quarter occurring after the date on which the comptroller receives the ordinance and map.

(e)

If as a result of the imposition or increase in a sales and use tax by a municipality in which there is located all or part of a local governmental entity that has adopted a sales and use tax or as a result of the annexation by a municipality of all or part of the territory in a local governmental entity that has adopted a sales and use tax the overlapping local sales and use taxes in the area will exceed two percent, the entity’s sales and use tax is automatically reduced in that area to a rate that when added to the combined rate of local sales and use taxes will equal two percent.

(f)

If an entity’s rate is reduced in accordance with Subsection (e), the comptroller shall withhold from the municipality’s monthly sales and use tax allocation an amount equal to the amount that would have been collected by the entity had the municipality not imposed or increased its sales and use tax or annexed the area in the entity less amounts that the entity collects following the municipality’s levy of or increase in its sales and use tax or annexation of the area in the entity. The comptroller shall withhold and pay the amount withheld to the entity under policies or procedures that the comptroller considers reasonable.

(g)

Subsections (e) and (f) do not apply if and during any period in which a local governmental entity has outstanding indebtedness or obligations that are payable wholly or partly from the sales and use tax revenue of the entity. A municipality may not implement the imposition or increase of the sales and use tax as a result of the circumstances described by Subsection (e) if, as a result of the implementation of that imposition or increase, the combined rate of all sales and use taxes imposed by the municipality, the local governmental entity, and any other political subdivisions having territory in the district would exceed two percent at any location in the municipality.

(h)

A transit authority is not a local governmental entity for the purposes of Subsections (e) and (f).

(i)

Subsection (g) does not apply to a local governmental entity or political subdivision created under Chapter 326 (Library Districts), Local Government Code.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1, 1987. Amended by Acts 1989, 71st Leg., ch. 256, Sec. 1, eff. Sept. 1, 1989; Acts 1991, 72nd Leg., ch. 184, Sec. 3, eff. May 24, 1991; Acts 1999, 76th Leg., ch. 1467, Sec. 2.67, eff. June 19, 1999; Acts 2001, 77th Leg., ch. 1263, Sec. 74, eff. Sept. 1, 2001.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 1246 (H.B. 157), Sec. 13, eff. September 1, 2015.

Source: Section 321.102 — Effective Dates: New Tax, Tax Repeal, Boundary Change, https://statutes.­capitol.­texas.­gov/Docs/TX/htm/TX.­321.­htm#321.­102 (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

§ 321.102’s source at texas​.gov