2023 Texas Statutes › Tax Code › Title 3 - Local Taxation › Subtitle C - Local Sales and Use Taxes › Chapter 323 - County Sales and Use Tax Act › Subchapter B. Imposition of Sales and Use Taxes by Counties › Section 323.105. Crime Control District Tax

Sec. 323.105.  CRIME CONTROL DISTRICT TAX.  (a)  Subject to an election held in accordance with the Crime Control and Prevention District Act, a county in which a crime control and prevention district is established shall adopt a sales and use tax in the area of the district for the purpose of financing the operation of the crime control and prevention district.  The revenue from the tax may be used only for the purpose of financing the operation of the crime control and prevention district.  The proposition for adopting a tax under this section and the proposition for creation of a crime control and prevention district shall be submitted at the same election.  For purposes of Subsection (c) of Section 323.101 of this code, a tax under this section is not a county sales and use tax.
(b)  A tax adopted for a district under this section for financing the operation of the district may be decreased in increments of one-eighth of one percent by order of the board of directors of the district.
(c)  The board of directors or the governing body of the governmental entity that proposed the creation of the crime control and prevention district may call an election on the question of decreasing the tax rate in increments of one-eighth of one percent in the district if the district was created before January 1, 1996.  The board of directors or governing body may dedicate a portion of the tax for the payment of bonds used in conjunction with the renovation or extension of a county-owned or municipally owned convention center facility, as defined in Section 351.001, that was constructed before 1969 if the dedication is approved by a majority of the qualified voters in an election held in the district on the question of decreasing the tax rate.  At the election, the ballot shall be printed to provide for voting for or against the following proposition:  "The decrease of the _______ Crime Control and Prevention District sales and use tax to _____ percent and authorizing the use of ______ of one percent for the payment of bonds issued for the renovation or extension of certain county-owned or municipally owned convention center facilities as that term is defined under Section 351.001, Tax Code, and authorizing that the tax expire on payment of the bonds."
(d)  The rate of a tax adopted for a district under this section may be increased in increments of one-eighth of one percent, not to exceed a total tax rate of one-half percent for financing the operation of the crime control and prevention district, by order of the board of directors of the crime control and prevention district if approved by a majority of the qualified voters voting at an election called by the board and held in the district on the question of increasing the tax rate.  At the election, the ballot shall be printed to provide for voting for or against the following proposition:  "The increase of the ____________ Crime Control and Prevention District sales and use tax rate to ____________ percent."  If there is an increase or decrease under this subsection in the rate of a tax imposed under this section, the new rate takes effect on the first day of the next calendar quarter after the expiration of one calendar quarter after the comptroller receives notice of the increase or decrease.  However, if the comptroller notifies the president of the board of directors of the district in writing within 10 days after receipt of the notification that the comptroller requires more time to implement reporting and collection procedures, the comptroller may delay implementation of the rate change for one whole calendar quarter.  In that event, the new rate takes effect on the first day of the next calendar quarter following the elapsed quarter.
(e)  The comptroller shall remit to the county amounts collected at the rate imposed under this section as part of the regular allocation of county tax revenue collected by the comptroller if the district is composed of the entire county.  The comptroller shall, if the district is composed of an area less than the entire county, remit that amount to the district.  Retailers may not be required to use the allocation and reporting procedures in the collection of taxes under this section different from the procedures that retailers use in the collection of other sales and use taxes under this chapter.  An item, transaction, or service that is taxable in a county under a sales or use tax authorized by another section of this chapter is taxable under this section.  An item, transaction, or service that is not taxable in a county under a sales or use tax authorized by another section of this chapter is not taxable under this section.
(f)  If, in a county where a crime control and prevention district is composed of the whole county, a county sales and use tax or a county sales and use tax rate increase for the purpose of financing a crime control and prevention district is approved, the county is responsible for distributing to the district that portion of the county sales and use tax revenue received from the comptroller that is to be used for the purposes of financing the crime control and prevention district.  Not later than the 10th day after the date the county receives funds under this section from the comptroller, the county shall make the distribution in the proportion that the crime control and prevention portion of the tax rate bears to the total sales and use tax rate of the county.  The amounts distributed to a crime control and prevention district are not considered to be sales and use tax revenue for the purpose of property tax reduction and computation of the county tax rate under Section 26.041, Tax Code.
(g)  For purposes of the tax imposed under this section, a reference in this chapter to the county as the territory in which the tax or an incident of the tax applies means only the territory located in the crime control and prevention district, if that district is composed of an area less than an entire county.
(h)  The comptroller may adopt rules and the county commissioners court may adopt orders to administer this section.
Added by Acts 1989, 71st Leg., ch. 664, Sec. 2, eff. June 14, 1989.  Amended by Acts 1993, 73rd Leg., ch. 864, Sec. 15, eff. June 18, 1993;  Acts 1997, 75th Leg., ch. 1248, Sec. 6, eff. June 20, 1997;  Acts 1999, 76th Leg., ch. 1467, Sec. 2.70, eff. Oct. 1, 1999.