Longer street-tax renewals after consecutive voter approvals

The text as introduced · 955 words

By: Garcia Hernandez
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.