Texas HB 4248: Relating to the authority to impose municipal sales and use taxes; authorizing an increase in the rate of a tax.

Bill Text

By:AAReynolds H.B.ANo.A4248
A BILL TO BE ENTITLED
AN ACT
relating to the authority to impose municipal sales and use taxes;
authorizing an increase in the rate of a tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTIONA1.AASection 321.101, Tax Code, is amended by
amending Subsections (b) and (f) and adding Subsection (f-1) to
read as follows:
(b)AAA 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)AAis included within the boundaries of a rapid
transit authority created under Chapter 451, Transportation Code;
(2)AAis included within the boundaries of a regional
transportation authority created under Chapter 452, 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)AAis wholly or partly located in a county that
contains territory within the boundaries of a regional
transportation authority created under Chapter 452, Transportation
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89R12842 JBD-F 1

Code, by a principal municipality having a population in excess of
1.1 million according to the most recent federal decennial census,
unless:
(A)AAthe municipality is a contiguous
municipality; [or]
(B)AAthe 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)AAthe municipality is not and on January 1,
1993, was not included within the boundaries of the authority; or
(D)AAthe municipality:
(i)AAhas a population of more than 70,000;
and
(ii)AAis located in two counties, with 90
percent of the municipality’s territory located in a county with a
population of more than 800,000 and the remaining territory located
in a county with a population of more than four million; or
(4)AAimposes a tax authorized by Chapter 453,
Transportation Code.
(f)AASubject to Subsection (f-1), a [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
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H.B.ANo.A4248
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location in the municipality.
(f-1)AAA municipality described by Subsection (b)(3)(D) 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 three
percent at any location in the municipality.
SECTIONA2.AAThis Act takes effect September 1, 2025.
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H.B.ANo.A4248
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