reglab/statecodes huggingface dataset:
2023 Texas Statutes › Tax Code › Title 3 - Local Taxation › Subtitle C - Local Sales and Use Taxes › Chapter 321 - Municipal Sales and Use Tax Act › Subchapter D. Administration of Taxes › Section 321.301. Comptroller to Collect and Administer Taxes

Sec. 321.301.  COMPTROLLER TO COLLECT AND ADMINISTER TAXES.  The comptroller shall administer, collect, and enforce any tax imposed by a municipality under this chapter.  The taxes imposed under this chapter and the tax imposed under Chapter 151 shall be collected together, if both taxes are imposed.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Tax Code › Title 3 - Local Taxation › Subtitle C - Local Sales and Use Taxes › Chapter 321 - Municipal Sales and Use Tax Act › Subchapter D. Administration of Taxes › Section 321.302. Comptroller's Reporting Duties

Sec. 321.302.  COMPTROLLER'S REPORTING DUTIES.  (a)  The comptroller shall make quarterly reports to a municipality that has adopted the taxes authorized by this chapter if the municipality requests the reports.  A report must include the name, address, and account number of each person in the municipality that has remitted to the comptroller a tax payment during the quarter covered by the report.
(b)  If a municipality requests an additional report, the comptroller shall make an additional quarterly report to the municipality including the name, address, and account number, if any, of, and the amount of tax due from, each person doing business in the municipality who has failed to pay the tax under this chapter to the municipality or under Chapter 151.  The additional report must also include statements:
(1)  showing whether or not there has been a partial tax payment by the delinquent taxpayer;
(2)  showing whether or not the taxpayer is delinquent in the payment of sales and use taxes to the state;  and
(3)  describing the steps taken by the comptroller to collect the delinquent taxes.
(c)  If a municipality determines that a person doing business in the municipality is not included in a comptroller's report, the municipality shall report to the comptroller the name and address of the person.  Within 90 days after receiving the report from a municipality, the comptroller shall send to the municipality:
(1)  an explanation as to why the person is not obligated for the municipal tax;
(2)  a statement that the person is obligated for the municipal tax and the tax is delinquent;  or
(3)  a certification that the person is obligated for the municipal tax and that the full amount of the tax due has been credited to the municipality's account.
(d)  The comptroller shall send by United States certified or registered mail to the municipal tax collector a notice of each person who is delinquent in the payment to the municipality of the taxes authorized by this chapter and shall send a copy of the notice to the attorney general.  A notice sent under this subsection is a certification of the amount of tax owed and is prima facie evidence of a determination of that amount and of its delinquency.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Tax Code › Title 3 - Local Taxation › Subtitle C - Local Sales and Use Taxes › Chapter 321 - Municipal Sales and Use Tax Act › Subchapter D. Administration of Taxes › Section 321.3025. Disposition of Amount Erroneously Collected

Sec. 321.3025.  DISPOSITION OF AMOUNT ERRONEOUSLY COLLECTED.  (a)  If in a territory added to a municipality a retailer erroneously collects an amount as a tax imposed under this chapter before the date the taxes imposed under this chapter by the municipality take effect in the added territory under Section 321.102, the amount collected is treated as if it were revenue from the taxes imposed by the municipality under this chapter, and the comptroller shall collect and administer the amount in the same manner as tax revenue.
(b)  This section does not affect the right of a person who paid an amount erroneously collected by a retailer to claim a refund or the authority of the comptroller to make a refund of that amount.
Added by Acts 1989, 71st Leg., ch. 291, Sec. 1, eff. June 14, 1989.
2023 Texas Statutes › Tax Code › Title 3 - Local Taxation › Subtitle C - Local Sales and Use Taxes › Chapter 321 - Municipal Sales and Use Tax Act › Subchapter D. Administration of Taxes › Section 321.303. Sales Tax Permits and Exemption and Resale Certificates

Sec. 321.303.  SALES TAX PERMITS AND EXEMPTION AND RESALE CERTIFICATES.  (a)  Each place of business of a retailer must have a permit issued by the comptroller under Subchapter F, Chapter 151.
(b)  The same sales tax permit, exemption certificate, and resale certificate required by Chapter 151 for the administration and collection of the taxes imposed by that chapter satisfy the requirements of this chapter.  No additional permit or exemption or resale certificate may be required except that the comptroller may prescribe a separate exemption certificate form for the transition exemption for prior contracts and bids under Section 321.209.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Tax Code › Title 3 - Local Taxation › Subtitle C - Local Sales and Use Taxes › Chapter 321 - Municipal Sales and Use Tax Act › Subchapter D. Administration of Taxes › Section 321.304. Discounts for Prepayment and Tax Collection

Sec. 321.304.  DISCOUNTS FOR PREPAYMENT AND TAX COLLECTION.  All discounts allowed a retailer under Chapter 151 for the collection and prepayment of the taxes under that chapter are allowed and applicable to the taxes collected under this chapter.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Tax Code › Title 3 - Local Taxation › Subtitle C - Local Sales and Use Taxes › Chapter 321 - Municipal Sales and Use Tax Act › Subchapter D. Administration of Taxes › Section 321.305. Penalties

Sec. 321.305.  PENALTIES.  The penalties provided by Chapter 151 for violations of that chapter apply to violations of this chapter.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Tax Code › Title 3 - Local Taxation › Subtitle C - Local Sales and Use Taxes › Chapter 321 - Municipal Sales and Use Tax Act › Subchapter D. Administration of Taxes › Section 321.306. Comptroller's Rules

Sec. 321.306.  COMPTROLLER'S RULES.  The comptroller may adopt reasonable rules and prescribe forms that are consistent with this chapter for the administration, collection, reporting, and enforcement of this chapter.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Tax Code › Title 3 - Local Taxation › Subtitle C - Local Sales and Use Taxes › Chapter 321 - Municipal Sales and Use Tax Act › Subchapter D. Administration of Taxes › Section 321.307. Delinquent Taxes: Limitations

Sec. 321.307.  DELINQUENT TAXES:  LIMITATIONS.  The limitations for the bringing of a suit for the collection of a tax imposed or a penalty due under this chapter after the tax and penalty are delinquent or after a determination against the taxpayer are the same as limitations provided by Chapter 151.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Tax Code › Title 3 - Local Taxation › Subtitle C - Local Sales and Use Taxes › Chapter 321 - Municipal Sales and Use Tax Act › Subchapter D. Administration of Taxes › Section 321.308. Seizure and Sale of Property

Sec. 321.308.  SEIZURE AND SALE OF PROPERTY.  If the comptroller lawfully seizes property for the payment of the taxes imposed under Chapter 151 and the property owner is delinquent in the payment of taxes under this chapter, the comptroller shall sell sufficient property to pay the delinquent taxes and penalties of both taxes.  The proceeds of a sale of seized property shall first be applied to the payment of amounts due the state and the remainder, if any, to the amounts due to the municipality to which the taxes are due.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Tax Code › Title 3 - Local Taxation › Subtitle C - Local Sales and Use Taxes › Chapter 321 - Municipal Sales and Use Tax Act › Subchapter D. Administration of Taxes › Section 321.309. Suit for Tax Collection

Sec. 321.309.  SUIT FOR TAX COLLECTION.  (a)  A municipality acting through its attorney may join as a plaintiff in any suit brought by the attorney general to seek a judgment for delinquent taxes and penalties due to the municipality under this chapter.
(b)  A municipality may bring suit for the collection of taxes owed to the municipality under this chapter if:
(1)  the taxes are certified by the comptroller in the notice required by Section 321.302(d);
(2)  a written notice of the tax delinquency and the municipality's intention to bring suit is given by certified mail to the taxpayer, the attorney general, and the comptroller at least 60 days before the suit is filed;  and
(3)  neither the comptroller nor the attorney general disapproves of the suit.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Tax Code › Title 3 - Local Taxation › Subtitle C - Local Sales and Use Taxes › Chapter 321 - Municipal Sales and Use Tax Act › Subchapter D. Administration of Taxes › Section 321.310. Disapproval of Municipal Suit

Sec. 321.310.  DISAPPROVAL OF MUNICIPAL SUIT.  (a)  The comptroller or the attorney general may disapprove of the institution of a suit by a municipality under Section 321.309(b) if:
(1)  negotiations between the state and the taxpayer are being conducted for the purpose of the collection of delinquent taxes owed to the state and the municipality seeking to bring suit;
(2)  the taxpayer owes substantial taxes to the state and there is a reasonable possibility that the taxpayer may be unable to pay the total amount owed;
(3)  the state will bring suit against the taxpayer for all taxes due under Chapter 151 and this chapter;  or
(4)  the suit involves a critical legal question relating to the interpretation of state law or a provision of the Texas or United States constitution in which the state has an overriding interest.
(b)  A notice of disapproval to a municipality must be in writing and give the reason for the determination by the comptroller or attorney general.
(c)  A disapproval is final and not subject to review.
(d)  Not earlier than one year after the date of a disapproval of the institution of a municipal collection suit, the municipality may again proceed as provided by Section 321.309(b) even though the liability of the taxpayer includes taxes for which the municipality has previously given notice and the comptroller or attorney general has disapproved of the suit.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Tax Code › Title 3 - Local Taxation › Subtitle C - Local Sales and Use Taxes › Chapter 321 - Municipal Sales and Use Tax Act › Subchapter D. Administration of Taxes › Section 321.311. Judgments in Municipal Suit

Sec. 321.311.  JUDGMENTS IN MUNICIPAL SUIT.  (a)  A judgment in a suit under Section 321.309(b) for or against a taxpayer does not affect a claim against the taxpayer by another municipality or the state unless the state is party to the suit.
(b)  A municipality shall abstract a copy of each final judgment for taxes imposed under this chapter in a case in which the state is not a party and shall send to the comptroller a copy of the judgment and the abstract.
(c)  A municipality shall by execution collect the taxes awarded to it in each judgment received by the municipality and is responsible for the renewal of the judgment before its expiration.
(d)  The municipality shall notify the comptroller by certified mail of the amount of any taxes collected on the judgment.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Tax Code › Title 3 - Local Taxation › Subtitle C - Local Sales and Use Taxes › Chapter 321 - Municipal Sales and Use Tax Act › Subchapter D. Administration of Taxes › Section 321.312. Retention of Certain Municipal Sales Taxes

Sec. 321.312.  RETENTION OF CERTAIN MUNICIPAL SALES TAXES.  A municipality that holds a sales and use tax permit issued by the comptroller and that imposes a sales and use tax may retain the portion of the tax that the municipality collects and that constitutes the municipality's own tax.  The municipality shall remit to the comptroller all other applicable local sales and use taxes and the state sales and use tax.
Added by Acts 2001, 77th Leg., ch. 1263, Sec. 75, eff. Oct. 1, 2001.
2023 Texas Statutes › Tax Code › Title 3 - Local Taxation › Subtitle C - Local Sales and Use Taxes › Chapter 321 - Municipal Sales and Use Tax Act › Subchapter E. Tax Election Procedures › Section 321.401. Calling of Election

Sec. 321.401.  CALLING OF ELECTION.  (a)  An election under this chapter is called by the adoption of an ordinance by the governing body of a municipality.
(b)  The governing body may call the election by a vote of a majority of its members.
(c)  The governing body shall call the election if a number of qualified voters of the municipality equal to at least 20 percent of the number of votes cast in the most recent regular municipal election petitions the governing body for a vote on the question.
(d)  The governing body of any municipality that has not adopted the additional sales and use tax shall, on petition of qualified voters of the municipality equal in number to at least five percent of the number of voters registered in the municipality, provide by ordinance for the calling and holding of an election on the question of adopting the additional sales and use tax.
(e)  The governing body of any municipality that has adopted the additional sales and use tax shall, on petition of qualified voters of the municipality equal in number to at least five percent of the number of voters registered in the municipality, provide by ordinance for the calling and holding of an election on the question of increasing, reducing, or repealing the additional sales and use tax.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1991, 72nd Leg., ch. 184, Sec. 6, eff. May 24, 1991.
2023 Texas Statutes › Tax Code › Title 3 - Local Taxation › Subtitle C - Local Sales and Use Taxes › Chapter 321 - Municipal Sales and Use Tax Act › Subchapter E. Tax Election Procedures › Section 321.402. Deadlines After Petition

Sec. 321.402.  DEADLINES AFTER PETITION.  (a)  After the receipt of a petition for an election under this chapter, the governing body of a municipality shall determine the sufficiency of the petition within 30 days.
(b)  If the petition is sufficient, the governing body shall pass the ordinance calling the election within 60 days after receiving the petition.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Tax Code › Title 3 - Local Taxation › Subtitle C - Local Sales and Use Taxes › Chapter 321 - Municipal Sales and Use Tax Act › Subchapter E. Tax Election Procedures › Section 321.403. Time of Election

Sec. 321.403.  TIME OF ELECTION.  (a)  An election under this chapter to adopt the tax authorized under Section 321.101(a) must be held on the first succeeding uniform election date for which sufficient time elapses for the holding of an election.
(b)  An election on the approval of the additional sales and use tax must be held on the next succeeding uniform election date not less than 30 days after the passage of the ordinance calling the election.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Tax Code › Title 3 - Local Taxation › Subtitle C - Local Sales and Use Taxes › Chapter 321 - Municipal Sales and Use Tax Act › Subchapter E. Tax Election Procedures › Section 321.404. Ballot Wording

Sec. 321.404.  BALLOT WORDING.  (a)  In an election to adopt the tax, the ballot shall be printed to provide for voting for or against the applicable proposition:  "A sales and use tax is adopted within the city at the rate of _______ percent" (insert appropriate rate) or "The adoption of an additional sales and use tax within the city at the rate of ________ percent to be used to reduce the property tax rate" (insert appropriate rate).
(b)  In an election to repeal the tax, the ballot shall be printed to provide for voting for or against the applicable proposition:  "The local sales and use tax within the city is abolished" or "The abolition of the additional sales and use tax within the city."
(c)  In a municipality that does not impose a property tax, the ballot at an election to adopt the additional municipal sales and use tax shall be printed to provide for voting for or against the following proposition:  "The adoption of an additional sales and use tax within the city at the rate of ________ percent" (insert appropriate rate).
(d)  In an election to reduce or increase the tax, the ballot shall be printed to provide for 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)."
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1989, 71st Leg., ch. 2, Sec. 14.14(b), eff. Aug. 28, 1989;  Acts 1991, 72nd Leg., ch. 184, Sec. 7, eff. May 24, 1991.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 1246 (H.B. 157), Sec. 16, eff. September 1, 2015.
2023 Texas Statutes › Tax Code › Title 3 - Local Taxation › Subtitle C - Local Sales and Use Taxes › Chapter 321 - Municipal Sales and Use Tax Act › Subchapter E. Tax Election Procedures › Section 321.405. Official Results of Election

Sec. 321.405.  OFFICIAL RESULTS OF ELECTION.  (a)  Within 10 days after an election in which the voters approve of the adoption, change in rate, or abolition of a tax authorized by this chapter, the governing body of the municipality shall by resolution or ordinance entered in its minutes of proceedings, declare the results of the election.  A resolution or ordinance under this section must include statements showing:
(1)  the date of the election;
(2)  the proposition on which the vote was held;
(3)  the total number of votes cast for and against the proposition;  and
(4)  the number of votes by which the proposition was approved.
(b)  If the application of the taxes that may be imposed under this chapter is changed by the results of the election, the municipal secretary shall send to the comptroller by United States certified or registered mail a certified copy of the resolution or the ordinance along with a map of the municipality clearly showing its boundaries.
(c)  Not later than the 30th day after the date the comptroller receives a certified copy of an ordinance or resolution showing the adoption of the additional municipal sales and use tax, the comptroller shall notify the municipal secretary that he is prepared for the administration of the tax.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1, 1987.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 1246 (H.B. 157), Sec. 17, eff. September 1, 2015.
2023 Texas Statutes › Tax Code › Title 3 - Local Taxation › Subtitle C - Local Sales and Use Taxes › Chapter 321 - Municipal Sales and Use Tax Act › Subchapter E. Tax Election Procedures › Section 321.406. Frequency of Election

Sec. 321.406.  FREQUENCY OF ELECTION.  An election under this chapter in a municipality may not be held earlier than one year after the date of any previous election under this chapter in the municipality.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Tax Code › Title 3 - Local Taxation › Subtitle C - Local Sales and Use Taxes › Chapter 321 - Municipal Sales and Use Tax Act › Subchapter E. Tax Election Procedures › Section 321.407. Election Contest: Notice

Sec. 321.407.  ELECTION CONTEST:  NOTICE.  (a)  If an election held under this chapter is contested, the contestant shall send to the comptroller by United States certified or registered mail within 10 days after the filing of the contest a notice of contest containing the style of the suit, the date it was filed, its case number, and the name of the court in which the contest is pending.
(b)  A court may not hear an election contest of an election held under this chapter unless the comptroller is notified within the time and in the manner provided by this section.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Tax Code › Title 3 - Local Taxation › Subtitle C - Local Sales and Use Taxes › Chapter 321 - Municipal Sales and Use Tax Act › Subchapter E. Tax Election Procedures › Section 321.408. Election Contest: Delayed Effective Date

Sec. 321.408.  ELECTION CONTEST:  DELAYED EFFECTIVE DATE.  (a)  When the comptroller receives a notice of contest of an election under this chapter, the effective date of the tax or the abolition of a tax is suspended.
(b)  When a final judgment is entered in the election contest, the municipal secretary shall notify the comptroller by United States certified or registered mail and enclose a certified copy of the final judgment.
(c)  If the final judgment in the election contest results in a change in the tax status of the municipality under this chapter, the tax or the abolition of the tax takes effect as provided by Section 321.102 except that the notice of the final judgment is substituted for the notice of election results prescribed by Section 321.405.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Tax Code › Title 3 - Local Taxation › Subtitle C - Local Sales and Use Taxes › Chapter 321 - Municipal Sales and Use Tax Act › Subchapter E. Tax Election Procedures › Section 321.409. Combined Municipal Sales Tax Ballot Propositions

Sec. 321.409.  COMBINED MUNICIPAL SALES TAX BALLOT PROPOSITIONS.  (a)  Notwithstanding any provisions of this code or other state law, a municipality may by a combined ballot proposition lower or repeal any municipal sales tax, including the additional sales tax for property tax relief, and by the same proposition raise or adopt any other municipal sales tax, including the additional sales tax for property tax relief.
(b)  A combined sales tax proposition under this section shall contain substantially the same language, if any, required by law for the lowering, repealing, raising, or adopting of each tax as appropriate.
(c)  A negative vote on a combined sales tax proposition under this section shall have no effect on either the sales tax to be lowered or repealed by the proposition or the sales tax to be raised or adopted by the proposition.
(d)  This section does not apply to sales tax elections called by any method other than by the governing body.
(e)  This section shall not be construed to change the substantive law of any sales tax, including the allowed maximum rate or combined rate of local sales taxes.
Added by Acts 2005, 79th Leg., Ch. 1313 (H.B. 3195), Sec. 1, eff. September 1, 2005.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 883 (H.B. 3046), Sec. 1, eff. June 15, 2017.
2023 Texas Statutes › Tax Code › Title 3 - Local Taxation › Subtitle C - Local Sales and Use Taxes › Chapter 321 - Municipal Sales and Use Tax Act › Subchapter F. Revenue Deposit, Distribution, and Use › Section 321.501. Trust Account

Sec. 321.501.  TRUST ACCOUNT.  (a)  The comptroller shall deposit the taxes collected by the comptroller under this chapter in trust in the separate suspense account of the municipality from which the taxes were collected.
(b)  Repealed by Acts 2003, 78th Leg., ch. 285, Sec. 31(44).
(c)  Repealed by Acts 2003, 78th Leg., ch. 285, Sec. 31(44).
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1997, 75th Leg., ch. 1423, Sec. 19.123, eff. Sept. 1, 1997;  Acts 2003, 78th Leg., ch. 285, Sec. 31(44), eff. Sept. 1, 2003.
2023 Texas Statutes › Tax Code › Title 3 - Local Taxation › Subtitle C - Local Sales and Use Taxes › Chapter 321 - Municipal Sales and Use Tax Act › Subchapter F. Revenue Deposit, Distribution, and Use › Section 321.502. Distribution of Trust Funds

Sec. 321.502.  DISTRIBUTION OF TRUST FUNDS.  At least twice during each state fiscal year and at other times as often as feasible, the comptroller shall send to the municipal treasurer or to the person who performs the office of the municipal treasurer payable to the municipality the municipality's share of the taxes collected by the comptroller under this chapter.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Tax Code › Title 3 - Local Taxation › Subtitle C - Local Sales and Use Taxes › Chapter 321 - Municipal Sales and Use Tax Act › Subchapter F. Revenue Deposit, Distribution, and Use › Section 321.5025. Distribution of Trust Funds to Defunding Municipality

Sec. 321.5025.  DISTRIBUTION OF TRUST FUNDS TO DEFUNDING MUNICIPALITY.  (a)  In this section, "defunding municipality" means a municipality that is considered to be a defunding municipality for the current state fiscal year under Chapter 109, Local Government Code.
(b)  Notwithstanding Section 321.502, the comptroller may not, before July 1 of each state fiscal year, send to a defunding municipality its share of the taxes collected by the comptroller under this chapter during the state fiscal year.  Before sending the defunding municipality its share of the taxes, the comptroller shall deduct the amount reported to the comptroller for the defunding municipality under Subsection (c) and credit that deducted amount to the general revenue fund.  Money credited to the general revenue fund under this subsection may be appropriated only to the Department of Public Safety.
(c)  Not later than August 1 of each state fiscal year, the criminal justice division of the governor's office shall report to the comptroller for each defunding municipality the amount of money the state spent in that state fiscal year to provide law enforcement services in that defunding municipality.
Added by Acts 2021, 87th Leg., R.S., Ch. 199 (H.B. 1900), Sec. 3.02, eff. September 1, 2021.
2023 Texas Statutes › Tax Code › Title 3 - Local Taxation › Subtitle C - Local Sales and Use Taxes › Chapter 321 - Municipal Sales and Use Tax Act › Subchapter F. Revenue Deposit, Distribution, and Use › Section 321.503. State's Share

Sec. 321.503.  STATE'S SHARE.  Before sending any money to a municipality under this subchapter the comptroller shall deduct two percent of the amount of the taxes collected within the municipality during the period for which a distribution is made as the state's charge for its services under this chapter and shall, subject to premiums payments under Section 321.501(c), credit the money deducted to the general revenue fund.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Tax Code › Title 3 - Local Taxation › Subtitle C - Local Sales and Use Taxes › Chapter 321 - Municipal Sales and Use Tax Act › Subchapter F. Revenue Deposit, Distribution, and Use › Section 321.504. Amounts Retained in Trust Account

Sec. 321.504.  AMOUNTS RETAINED IN TRUST ACCOUNT.  (a)  The comptroller may retain in the suspense account of a municipality a portion of the municipality's share of the tax collected for the municipality under this chapter, not to exceed five percent of the amount remitted to the municipality.  If the municipality has abolished the tax, the amount that may be retained may not exceed five percent of the final remittance to the municipality at the time of the termination of the collection of the tax.
(b)  From the amounts retained in a municipality's suspense account, the comptroller may make refunds for overpayments to the account and to redeem dishonored checks and drafts deposited to the credit of the account.
(c)  Before the expiration of one year after the effective date of the abolition of a municipality's tax under this chapter the comptroller shall send to the municipality the remainder of the money in the municipality's account and shall close the account.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Tax Code › Title 3 - Local Taxation › Subtitle C - Local Sales and Use Taxes › Chapter 321 - Municipal Sales and Use Tax Act › Subchapter F. Revenue Deposit, Distribution, and Use › Section 321.505. Interest on Trust Account

Sec. 321.505.  INTEREST ON TRUST ACCOUNT.  Interest earned on all deposits made with the comptroller under Section 321.501, including interest earned from retained suspense accounts, shall be credited to the general revenue fund.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1997, 75th Leg., ch. 1423, Sec. 19.124, eff. Sept. 1, 1997.
2023 Texas Statutes › Tax Code › Title 3 - Local Taxation › Subtitle C - Local Sales and Use Taxes › Chapter 321 - Municipal Sales and Use Tax Act › Subchapter F. Revenue Deposit, Distribution, and Use › Section 321.506. Use of Tax Revenue by Municipality

Sec. 321.506.  USE OF TAX REVENUE BY MUNICIPALITY.  Except as provided by Section 321.507, the money received by a municipality under this chapter is for the use and benefit of the municipality and may be used for any purpose for which the general funds of the municipality may be used, except that a municipality may not pledge the revenue received under this chapter to the payment of bonds or other indebtedness.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Tax Code › Title 3 - Local Taxation › Subtitle C - Local Sales and Use Taxes › Chapter 321 - Municipal Sales and Use Tax Act › Subchapter F. Revenue Deposit, Distribution, and Use › Section 321.507. Use of Additional Municipal Sales and Use Tax

Sec. 321.507.  USE OF ADDITIONAL MUNICIPAL SALES AND USE TAX.  (a)  In each year in which a municipality imposes an additional municipal sales and use tax, if the revenue from the collection of the additional tax exceeds the amount of taxes computed for the municipality under Section 26.04(c), except for the amount required to be deposited in a special account under Subsection (b), the excess shall be deposited in an account to be called the municipal sales tax debt service fund.  Revenue deposited in the municipal sales tax debt service fund may be spent only for the reduction of lawful debts of the municipality, except that deposits that exceed the amount of revenue needed to pay the debt service needs of the municipality in the current year may be used for any municipal purpose consistent with the municipal budget.
(b)  Revenue from the collection of the additional municipal sales and use tax in each of the first three years in which the tax is imposed in the municipality in excess of the amount determined as provided by Section 26.041(d), for each year shall be deposited in an account to be called the excess sales tax revenue fund.  During those three years, revenue deposited in the excess sales tax revenue fund may be spent only if and to the extent that taxes or other revenues of the municipality are collected in amounts less than anticipated.  After that period, the revenue in the fund may be used for any municipal purpose consistent with the municipality's budget.  The fund ceases to exist when all revenue deposited in the fund has been spent.  This subsection does not apply to a municipality that does not impose a property tax.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1989, 71st Leg., ch. 2, Sec. 14.16(a), eff. Aug. 28, 1989.
2023 Texas Statutes › Tax Code › Title 3 - Local Taxation › Subtitle C - Local Sales and Use Taxes › Chapter 321 - Municipal Sales and Use Tax Act › Subchapter F. Revenue Deposit, Distribution, and Use › Section 321.508. Pledge of Tax Revenue

Sec. 321.508.  PLEDGE OF TAX REVENUE.  (a)  A municipality may call and hold an election on the issue of authorizing the municipality to pledge a percentage of the sales and use tax revenue received under Section 321.101(a) or (b), or both, to the payment of obligations issued to pay all or part of the costs of one or more sports and community venue projects located in the municipality.
(b)  The ballot at the election under this section must be printed to permit voting for or against the proposition:  "Authorizing the City of ______ (insert name of municipality) to pledge not more than ______ percent (insert percentage not to exceed 25 percent) of the revenue received from the _________ (insert municipal sales and use tax, additional municipal sales and use tax, or both) previously adopted in the city to the payment of obligations issued to pay all or part of the costs of _________ (insert description of each sports and community venue project)."
(c)  If a majority of the voters vote in favor of the proposition, the municipality may:
(1)  issue bonds, notes, or other obligations that are payable from the pledged revenues to pay for all or part of the costs of the sports and community venue project or projects described in the proposition;  and
(2)  set aside the portion of the revenue approved at the election that the municipality actually receives and pledge that revenue as security for the payment of the bonds, notes, or other obligations.
(d)  If the municipality pledges revenue under Subsection (c), the pledge and security interest shall continue while the bonds, notes, or obligations, including refunding obligations, are outstanding and unpaid.
(e)  The municipality may direct the comptroller to deposit the pledged revenue to a trust or account as may be required to obtain the financing and to protect the related security interest.
(f)  Sections 321.506 and 321.507 do not apply to taxes pledged under this section.
(g)  In this section, "sports and community venue project" has the meaning assigned by Section 334.001, Local Government Code.
Added by Acts 1997, 75th Leg., ch. 551, Sec. 4, eff. Sept. 1, 1997.
2023 Texas Statutes › Tax Code › Title 3 - Local Taxation › Subtitle C - Local Sales and Use Taxes › Chapter 321 - Municipal Sales and Use Tax Act › Subchapter F. Revenue Deposit, Distribution, and Use › Section 321.509. Tax Powers of Municipality Not Limited

Sec. 321.509.  TAX POWERS OF MUNICIPALITY NOT LIMITED.  This chapter does not abolish or limit the tax powers of a municipality.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Tax Code › Title 3 - Local Taxation › Subtitle C - Local Sales and Use Taxes › Chapter 322 - Sales and Use Taxes for Special Purpose Taxing Authorities › Subchapter A. General Provisions › Section 322.001. Application of Chapter

Sec. 322.001.  APPLICATION OF CHAPTER.  (a)  This chapter applies to the imposition, assessment, collection, administration, and enforcement of a sales and use tax imposed under Chapter 451, 452, 453, or 460, Transportation Code.
(b)  The effective dates and rates of the taxes imposed by a taxing entity are determined under the laws authorizing the adoption of the taxes.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1997, 75th Leg., ch. 165, Sec. 30.266, eff. Sept. 1, 1997;  Acts 2003, 78th Leg., ch. 209, Sec. 56, eff. Oct. 1, 2003.
2023 Texas Statutes › Tax Code › Title 3 - Local Taxation › Subtitle C - Local Sales and Use Taxes › Chapter 322 - Sales and Use Taxes for Special Purpose Taxing Authorities › Subchapter A. General Provisions › Section 322.002. Definitions

Sec. 322.002.  DEFINITIONS.  In this chapter:
(1)  "Taxing entity" means a rapid transit authority, a regional transit authority, including a subregional transportation authority, or a municipal mass transit department created under Chapter 451, 452, or 453, Transportation Code, or a coordinated county transportation authority created under Chapter 460, Transportation Code, that has adopted a sales and use tax under the law authorizing the creation of the entity.
(2)  "Entity area" means the geographical limits of a taxing entity.
(3)  "Municipal sales and use tax" means a sales and use tax imposed by a municipality under the Municipal Sales and Use Tax Act (Chapter 321) within an entity area.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1997, 75th Leg., ch. 165, Sec. 30.267, eff. Sept. 1, 1997;  Acts 2003, 78th Leg., ch. 209, Sec. 57, eff. Oct. 1, 2003.
2023 Texas Statutes › Tax Code › Title 3 - Local Taxation › Subtitle C - Local Sales and Use Taxes › Chapter 322 - Sales and Use Taxes for Special Purpose Taxing Authorities › Subchapter B. Assessment and Computation of Taxes › Section 322.101. Sales Tax

Sec. 322.101.  SALES TAX.  There is imposed in a taxing entity a sales tax at the rate authorized and set as provided by the law authorizing the creation of the taxing entity and applied to the receipts from the sale within the entity area of all taxable items that are subject to the sales tax under Chapter 151.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Tax Code › Title 3 - Local Taxation › Subtitle C - Local Sales and Use Taxes › Chapter 322 - Sales and Use Taxes for Special Purpose Taxing Authorities › Subchapter B. Assessment and Computation of Taxes › Section 322.102. Use Tax

Sec. 322.102.  USE TAX.  In a taxing entity, there is imposed an excise tax on the use, storage, and other consumption within the entity area of taxable items purchased, leased, or rented from a retailer during the period that the sales tax is effective within the entity area.  The rate of the excise tax is the same rate as the rate of the sales tax imposed by the taxing entity and is applied to the sales price of the taxable item.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Tax Code › Title 3 - Local Taxation › Subtitle C - Local Sales and Use Taxes › Chapter 322 - Sales and Use Taxes for Special Purpose Taxing Authorities › Subchapter B. Assessment and Computation of Taxes › Section 322.103. Computation of Sales Taxes

Sec. 322.103.  COMPUTATION OF SALES TAXES.  (a)  Each retailer in an entity area shall add the sales tax imposed under this chapter, the sales taxes imposed under Chapter 151, and, if applicable, any sales taxes imposed under Chapter 321 or 323 to the sales price, and the sum of the taxes is a part of the price, a debt of the purchaser to the retailer until paid, and recoverable at law in the same manner as the purchase price.
(b)  The amount of the total tax is computed by multiplying the combined applicable tax rates by the amount of the sales price.  If the product results in a fraction of a cent less than one-half of one cent, the fraction of a cent is not collected.  If the fraction is one-half of one cent or more, the fraction shall be collected as one cent.
(c)  The exclusion provided by Section 151.411 applies to a retailer under this chapter 50 percent of whose receipts from the sales of taxable items comes from individual transactions in which the sales price is an amount on which no tax is produced from the combined applicable tax rates.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Tax Code › Title 3 - Local Taxation › Subtitle C - Local Sales and Use Taxes › Chapter 322 - Sales and Use Taxes for Special Purpose Taxing Authorities › Subchapter B. Assessment and Computation of Taxes › Section 322.104. Computation of Use Tax

Sec. 322.104.  COMPUTATION OF USE TAX.  (a)  In each taxing entity the tax imposed by Subchapter D, Chapter 151, the tax imposed under Section 321.104(a), if applicable, and the tax imposed under Section 322.102 are added together to form a single combined tax rate, except in a situation described by Section 322.105(b).
(b)  The formula prescribed by Section 322.103(b) applies to the computation of the amount of the tax under this section.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Tax Code › Title 3 - Local Taxation › Subtitle C - Local Sales and Use Taxes › Chapter 322 - Sales and Use Taxes for Special Purpose Taxing Authorities › Subchapter B. Assessment and Computation of Taxes › Section 322.105. Use Tax: Where Use Occurs

Sec. 322.105.  USE TAX:  WHERE USE OCCURS.  (a)  In determining the incidence of the use tax of a taxing entity, the name of the taxing entity is substituted in Subchapter D, Chapter 151, for "this state" where those words are used to designate the taxing entity or delimit the tax imposed.  However, the excise tax of a taxing entity on the use, storage, or other consumption of a taxable item does not apply if the item is first used, stored, or consumed in an area other than an entity area.
(b)  If a sale of a taxable item is consummated within this state but not within an entity area and the item is shipped directly or brought by the purchaser or lessee directly into an entity area, the item is subject to the entity's use tax.  The use is considered to be consummated at the location where the item is first used, stored, or consumed after the intrastate transit has ceased.
(c)  If a taxable item is shipped from outside this state to a customer within this state, the item is subject to the use tax of the taxing entity and not its sales tax.  A use is considered to be consummated at the first point in this state where the item is stored, used, or consumed after the interstate transit has ceased. A taxable item delivered to a point in this state is presumed to be for storage, use, or consumption at that point until the contrary is established.
(d)  Repealed by Acts 2007, 80th Leg., R.S., Ch. 823, Sec. 1(1), eff. September 1, 2007.
(e)  With respect to a taxable service, "use" means the derivation in the taxing entity of direct or indirect benefit from the service.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1989, 71st Leg., ch. 2, Sec. 14.21(a), eff. Aug. 28, 1989;  Acts 1991, 72nd Leg., ch. 705, Sec. 29, eff. Sept. 1, 1991.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 823 (H.B. 142), Sec. 1(1), eff. September 1, 2007.
2023 Texas Statutes › Tax Code › Title 3 - Local Taxation › Subtitle C - Local Sales and Use Taxes › Chapter 322 - Sales and Use Taxes for Special Purpose Taxing Authorities › Subchapter B. Assessment and Computation of Taxes › Section 322.106. Tax Inapplicable When No State Tax; Exceptions

Sec. 322.106.  TAX INAPPLICABLE WHEN NO STATE TAX;  EXCEPTIONS.  (a)  The sales tax of a taxing entity does not apply to the sale of a taxable item unless the sales tax imposed under Subchapter C, Chapter 151, also applies to the sale.
(b)  The excise tax of a taxing entity on the use, storage, or consumption of a taxable item does not apply to the use, storage, or consumption of an item unless the tax imposed by Subchapter D, Chapter 151, also applies to the use, storage, or consumption of the item.
(c)  Subsection (b) does not apply to the application of the tax in a situation described by Section 322.105(b).
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1991, 72nd Leg., ch. 705, Sec. 30, eff. Sept. 1, 1991.
2023 Texas Statutes › Tax Code › Title 3 - Local Taxation › Subtitle C - Local Sales and Use Taxes › Chapter 322 - Sales and Use Taxes for Special Purpose Taxing Authorities › Subchapter B. Assessment and Computation of Taxes › Section 322.108. Certain Provisions of Municipal Sales and Use Tax Applicable

Sec. 322.108.  CERTAIN PROVISIONS OF MUNICIPAL SALES AND USE TAX APPLICABLE.  (a)  Except as provided by Subsection (b), the following apply to the taxes imposed by this chapter in the same manner as applicable to a municipality under Chapter 321:
(1)  Section 321.002(a)(3);
(2)  Section 321.003;
(3)  Section 321.203;
(4)  Section 321.205(d);
(5)  Section 321.208;
(6)  Section 321.209;
(7)  Section 321.303;
(8)  Section 321.304;
(9)  Section 321.305; and
(10)  Section 321.510.
(b)  The provisions of this chapter applicable to a taxing entity created under Chapter 453, Transportation Code, prevail over any inconsistent provision in a statute listed in Subsection (a).
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1989, 71st Leg., ch. 2, Sec. 14.20(a), eff. Aug. 28, 1989;  Acts 1997, 75th Leg., ch. 165, Sec. 30.268, eff. Sept. 1, 1997.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 942 (H.B. 590), Sec. 3, eff. September 1, 2011.
2023 Texas Statutes › Tax Code › Title 3 - Local Taxation › Subtitle C - Local Sales and Use Taxes › Chapter 322 - Sales and Use Taxes for Special Purpose Taxing Authorities › Subchapter B. Assessment and Computation of Taxes › Section 322.109. Telecommunications Exemption

Sec. 322.109.  TELECOMMUNICATIONS EXEMPTION.  (a)  There are exempted from the taxes imposed by a taxing entity under this chapter the sales within the entity area of telecommunications services unless the application of the exemption is repealed under this section.  A taxing entity may not repeal the application of this exemption as it applies to interstate long-distance telecommunications services, but if a taxing entity has repealed the exemption before the effective date of Part 4, Article 1, H.B. No. 61, Acts of the 70th Legislature, 2nd Called Session, 1987, interstate long-distance telecommunications services in that taxing entity are not subject to taxes imposed under this chapter.
(b)  Except as provided by Subsection (d), the board of a taxing entity may, by a majority vote of the board in the manner required for the adoption of other orders, repeal the application of the exemption provided by Subsection (a) for telecommunications services sold within the city.
(c)  A taxing entity board that has repealed the application of the exemption may in the same manner reinstate the exemption.
(d)  The governing board of a taxing entity created under Chapter 451, Transportation Code, may not repeal the application of the exemption provided by Subsection (a) unless the repeal is first approved by a majority of the members of the governing body of each municipality that created the taxing entity.  A reinstatement of the exemption must be approved in the same manner.
(e)  A vote of a taxing entity board repealing the application of or reinstating the exemption must be entered in the minutes of the entity.  The entity board chairman or secretary shall send to the comptroller by United States certified or registered mail a copy of each order adopted under this section.  The repeal of the application of the exemption or a reinstated exemption takes effect within the entity on the first day of the first calendar quarter after the expiration of the first complete calendar quarter after the date on which the comptroller receives a copy of the order.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1987, 70th Leg., 2nd C.S., ch. 5, art. 1, pt. 4, Sec. 34;  Acts 1999, 76th Leg., ch. 1008, Sec. 1, eff. June 18, 1999.
2023 Texas Statutes › Tax Code › Title 3 - Local Taxation › Subtitle C - Local Sales and Use Taxes › Chapter 322 - Sales and Use Taxes for Special Purpose Taxing Authorities › Subchapter B. Assessment and Computation of Taxes › Section 322.110. Transition Exemption in Certain Taxing Entities

Sec. 322.110.  TRANSITION EXEMPTION IN CERTAIN TAXING ENTITIES.  (a)  The receipts from the sale, use, or rental of and the storage, use, or consumption of taxable items in this state are exempt from the tax imposed under this chapter by a taxing entity created under Chapter 453, Transportation Code, if the items are used:
(1)  for the performance of a written contract entered into before the date the tax takes effect in the taxing entity, if the contract is not subject to change or modification by reason of the tax;  or
(2)  pursuant to an obligation of a bid or bids submitted before the date the tax takes effect in the taxing entity, if the bid or bids may not be withdrawn, modified, or changed by reason of the tax.
(b)  The exemptions provided by this section have no effect after three years from the date the tax takes effect in the taxing entity.
Added by Acts 1989, 71st Leg., ch. 2, Sec. 14.19(a), eff. Aug. 28, 1989.  Amended by Acts 1997, 75th Leg., ch. 165, Sec. 30.269, eff. Sept. 1, 1997.