Relating to the municipal sales and use tax for street maintenance.

89(R) SB 1277 - House Committee Report version - Bill Text

By: Parker

S.B. No. 1277

(Garcia Hernandez)

A BILL TO BE ENTITLED

AN ACT

relating to the municipal sales and use tax for street maintenance.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Sections 327.007(a) and (b), Tax Code, are

amended to read as follows:

(a) Unless imposition of the sales and use tax authorized by

this chapter is reauthorized as provided by this section, the tax

expires on:

(1) the fourth anniversary of the date the tax

originally took effect under Section 327.005;

(2) the first day of the first calendar quarter

occurring after the fourth anniversary of the date the tax was last

reauthorized under this section if, at that election, the voters

approved the imposition of the tax for a period that expires on that

anniversary;

(2-a) if the tax is imposed in a municipality that is

intersected by two interstate highways, that has a population of

150,000 or more, and in which at least 66 percent of the voters

voting in each of the last two consecutive elections concerning the

adoption or reauthorization of the tax favored adoption or

reauthorization, and that tax has not expired as provided by

Subdivision (1) or (2) since the first of those two consecutive

elections, the last day of the first calendar quarter occurring

after the eighth anniversary of the date the tax was last

reauthorized under this section if, at that election, the voters

approved the imposition of the tax for a period that expires on that

anniversary instead of the period described by Subdivision (2);

(2-b)

if the tax is imposed in a municipality with a

population of less than 50,000, that includes a portion of an

international airport, and that is located in only two counties,

one of which has a population of 2.2 million or more and is adjacent

to a county with a population of more than 600,000, the last day of

the first calendar quarter occurring after the 10th anniversary of

the date the tax was last reauthorized under this section if, at

that election, the voters approved the imposition of the tax for a

period that expires on that anniversary instead of the period

described by Subdivision (2);
or

(3) if the tax is imposed in a municipality with a

population of more than 11,450 and less than 11,550, the last day of

the first calendar quarter occurring after the 10th anniversary of

the date the tax was last reauthorized under this section if, at

that election, the voters approved the imposition of the tax for a

period that expires on that anniversary instead of the period

described by Subdivision (2).

(b) An election to reauthorize the tax is called and held in

the same manner as an election to adopt the tax under Section

327.006, except the ballot proposition shall be prepared to permit

voting for or against the proposition: "The reauthorization of the

local sales and use tax in (name of municipality) at the rate of

(insert appropriate rate) to continue providing revenue for

maintenance and repair of municipal streets. The tax expires on the

(insert
"first day of the first calendar quarter occurring after

the
fourth
anniversary"

or "last day of the first calendar quarter

occurring after the (insert
[
,
] eighth[
,
] or 10th
anniversary, as

applicable
)
")
[
anniversary
] of the date of this election unless the

imposition of the tax is reauthorized."

SECTION 2. Section 327.008, Tax Code, is amended to read as

follows:

Sec. 327.008. USE OF TAX REVENUE. Revenue from the tax

imposed under this chapter may be used only to maintain and repair
a

municipal
:

(1) street or sidewalk; or

(2)

water, wastewater, or stormwater system located in

the width of a way of a municipal street
[
streets or sidewalks

existing on the date of the election to adopt the tax
].

SECTION 3. The change in law made by this Act to Section

327.007(b), Tax Code, applies only to ballot language for an

election ordered on or after the effective date of this Act. Ballot

language for an election ordered before the effective date of this

Act is governed by the law in effect when the election was ordered.

SECTION 4. 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 September 1, 2025.