SB1277 - Relating to the municipal sales and use tax for street maintenance.

      By: Parker S.B. No. 1277     (Garcia Hernandez)           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.  Sections 327.007(a) and (b), Tax Code, are   amended 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 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);                 (2-b)     if the tax is imposed in a municipality with a   population of less than 50,000, that includes a portion of an   international airport, and that is located in only two counties,   one of which has a population of 2.2 million or more and is adjacent   to a county with a population of more than 600,000, the last day of   the first calendar quarter occurring after the 10th 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 10th 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).          (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 of municipal streets. The tax expires on the   (insert "first day of the first calendar quarter occurring after   the fourth anniversary"   or "last day of the first calendar quarter   occurring after the (insert [ , ] eighth[ , ] or 10th anniversary, as   applicable ) ") [ anniversary ] 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.  The change in law made by this Act to Section   327.007(b), Tax Code, applies 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 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.