street-maintenance sales tax can pay for reconstruction

The text as introduced · 466 words

89R2736 JBD-D

By: Menéndez
S.B. No. 178

A BILL TO BE ENTITLED

AN ACT

relating to the permissible uses of revenue attributable to the

municipal sales and use tax for street maintenance.

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

SECTION 1. Section 327.006(b), Tax Code, is amended to read

as follows:

(b) At an election to adopt the tax, the ballot shall be

prepared to permit voting for or against the proposition: "The

adoption of a local sales and use tax in (name of municipality) at

the rate of (insert appropriate rate) to provide revenue for

maintenance , [ and ] repair , and reconstruction of municipal streets

or sidewalks ."

SECTION 2. Section 327.0065(c), Tax Code, is amended to

read as follows:

(c) The ballot for an election to increase the tax shall be

printed to permit voting for or against the proposition: "The

adoption of a local sales and use tax in (name of municipality) at

the rate of (insert appropriate rate) to provide revenue for

maintenance , [ and ] repair , and reconstruction of municipal streets

or sidewalks ."

SECTION 3. Section 327.007(b), Tax Code, is amended to read

as follows:

(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 , and reconstruction of municipal streets

or sidewalks . The tax expires on the (insert fourth, eighth, or

10th) anniversary of the date of this election unless the

imposition of the tax is reauthorized."

SECTION 4. 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 , and reconstruct municipal streets or sidewalks existing on

the date of the election to adopt the tax.

SECTION 5. Sections 327.006(b), 327.0065(c), and

327.007(b), Tax Code, as amended 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 when the

election was ordered.

SECTION 6. 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.