HB884 - Relating to the municipal sales and use tax for street maintenance.

      By: Hernandez of Dallas H.B. No. 884       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.  Section 327.007, Tax Code, is amended by   amending Subsections (a) and (b) and adding Subsection (b-1) 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 at an election under Subsection (b) [ 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); ] 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 8th or 10th   anniversary of the date the tax was last reauthorized at an election   under Subsection (b-1) [ 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 for a period of four   years 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 first day of the first calendar quarter   occurring after the fourth [ (insert fourth, eighth, or 10th) ]   anniversary of the date of this election unless the imposition of   the tax is reauthorized."           (b-1)     This subsection applies only to a municipality in   which a majority of the voters voting in each of the last two   consecutive elections concerning the adoption or reauthorization   of the tax authorized by this chapter favored adoption or   reauthorization of the tax and in which the tax has not expired as   provided by Subsection (a) since the first of those two consecutive   elections. A municipality to which this subsection applies may   call an election to reauthorize the tax for a period of 8 or 10 years   instead of 4 years.   The election 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 last day of the   first calendar quarter occurring after the (insert 8th or 10th   anniversary, as applicable) 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.  (a) The change in law made by this Act to Section   327.007(a), Tax Code, applies only to the expiration of a sales and   use tax under Chapter 327, Tax Code, that is adopted or reauthorized   on or after the effective date of this Act. The expiration of a   sales and use tax that was adopted or last reauthorized before the   effective date of this Act is governed by the law in effect   immediately before the effective date of this Act, and the former   law is continued in effect for that purpose.          (b)  Section 327.007(b), Tax Code, as amended by this Act,   and Section 327.007(b-1), Tax Code, as added by this Act, apply 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 on the   date 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.