HB4248 - Relating to the authority to impose municipal sales and use taxes; authorizing an increase in the rate of a tax.

  89R12842 JBD-F     By: Reynolds H.B. No. 4248       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:          SECTION 1.  Section 321.101, Tax Code, is amended by   amending Subsections (b) and (f) and adding Subsection (f-1) to   read as follows:          (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, Transportation Code;                (2)  is 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)  is wholly or partly located in a county that   contains territory within the boundaries of a regional   transportation authority created under Chapter 452, 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                       (D)  the municipality:                             (i)     has a population of more than 70,000;   and                             (ii)     is 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)  imposes a tax authorized by Chapter 453,   Transportation Code.          (f)   Subject 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   location in the municipality.           (f-1)     A 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.          SECTION 2.  This Act takes effect September 1, 2025.