CHAPTER 321. MUNICIPAL SALES AND USE TAX ACT
TAX CODE
TITLE 3. LOCAL TAXATION
SUBTITLE C. LOCAL SALES AND USE TAXES
CHAPTER 321. MUNICIPAL SALES AND USE TAX ACT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 321.001. SHORT TITLE. This chapter may be cited as the
Municipal Sales and Use Tax Act.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1,
1987.
Sec. 321.002. DEFINITIONS. (a) In this chapter:
(1) "Additional municipal sales and use tax" means only the
additional tax authorized by Section 321.101(b).
(2) "Municipality" includes any incorporated city, town, or
village.
(3) "Place of business of the retailer" means an established
outlet, office, or location operated by the retailer or the
retailer's agent or employee for the purpose of receiving orders
for taxable items and includes any location at which three or
more orders are received by the retailer during a calendar year.
A warehouse, storage yard, or manufacturing plant is not a "place
of business of the retailer" unless at least three orders are
received by the retailer during the calendar year at the
warehouse, storage yard, or manufacturing plant. An outlet,
office, facility, or location that contracts with a retail or
commercial business engaged in activities to which this chapter
applies to process for that business invoices or bills of lading
onto which sales tax is added is not a "place of business of the
retailer" if the comptroller determines that the outlet, office,
facility, or location functions or exists to avoid the tax
imposed by this chapter or to rebate a portion of the tax imposed
by this chapter to the contracting business. Notwithstanding any
other provision of this subdivision, a kiosk is not a "place of
business of the retailer." In this subdivision, "kiosk" means a
small stand-alone area or structure that:
(A) is used solely to display merchandise or to submit orders
for taxable items from a data entry device, or both;
(B) is located entirely within a location that is a place of
business of another retailer, such as a department store or
shopping mall; and
(C) at which taxable items are not available for immediate
delivery to a customer.
(b) Words used in this chapter and defined by Chapter 151 have
the meanings assigned by Chapter 151.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1,
1987. Amended by Acts 2003, 78th Leg., ch. 1155, Sec. 1, eff.
Sept. 1, 2003.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
1360, Sec. 4, eff. September 1, 2009.
Sec. 321.003. OTHER PORTIONS OF TAX APPLICABLE. Subtitles A and
B, Title 2, and Chapters 142 and 151 apply to the taxes and to
the administration and enforcement of the taxes imposed by this
chapter in the same manner that those laws apply to state taxes,
unless modified by this chapter.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1,
1987. Amended by Acts 1989, 71st Leg., ch. 2, Sec. 14.13, eff.
Aug. 28, 1989; Acts 2003, 78th Leg., ch. 1310, Sec. 114, eff.
Oct. 1, 2003.
Sec. 321.004. REFERENCES TO SALES OR USE TAX. A reference to a
sales tax or a use tax imposed or authorized by this chapter is a
reference to both the taxes imposed under Sections 321.101(a) and
(b) unless otherwise provided.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1,
1987.
SUBCHAPTER B. IMPOSITION OF SALES AND USE TAXES BY MUNICIPALITIES
Sec. 321.101. TAX AUTHORIZED. (a) A municipality may adopt or
repeal a sales and use tax authorized by this chapter, other than
the additional municipal sales and use tax, at an election in
which a majority of the qualified voters of the municipality
approve the adoption or repeal of the tax.
(b) A municipality that is not disqualified may, by a majority
vote of the qualified voters of the municipality voting at an
election held for that purpose, adopt an additional sales and use
tax for the benefit of the municipality in accordance with this
chapter. A municipality is disqualified from adopting the
additional sales and use tax if the municipality:
(1) is included within the boundaries of a rapid transit
authority created under Chapter 451, Transportation Code;
(2) is included within the boundaries of a regional
transportation authority created under Chapter 452,
Transportation Code, by a principal municipality having a
population of less than 800,000, unless the municipality has a
population of 400,000 or more and is located in more than one
county;
(3) is wholly or partly located in a county that contains
territory within the boundaries of a regional transportation
authority created under Chapter 452, Transportation Code, by a
principal municipality having a population in excess of 800,000,
unless:
(A) the municipality is a contiguous municipality; or
(B) the municipality is not included within the boundaries of
the authority and is located wholly or partly in a county in
which fewer than 250 persons are residents of both the county and
the authority according to the most recent federal census; or
(C) the municipality is not and on January 1, 1993, was not
included within the boundaries of the authority; or
(4) imposes a tax authorized by Chapter 453, Transportation
Code.
(c) For the purposes of Subsection (b), "principal municipality
" and "contiguous municipality " have the meanings assigned by
Section 452.001, Transportation Code.
(d) In any municipality in which an additional sales and use tax
has been imposed, in the same manner and by the same procedure
the municipality by majority vote of the qualified voters of the
municipality voting at an election held for that purpose may
reduce, increase, or abolish the additional sales and use tax.
(e) An authority created under Chapter 451 or 452,
Transportation Code, is prohibited from imposing the tax provided
for by those chapters if within the boundaries of the authority
there is a municipality that has adopted the additional sales and
use tax provided for by this section.
(f) A municipality may not adopt or increase a sales and use tax
or an additional sales and use tax under this section if as a
result of the adoption or increase of the tax the combined rate
of all sales and use taxes imposed by the municipality and other
political subdivisions of this state having territory in the
municipality would exceed two percent at any location in the
municipality.
(g) For the purposes of Subsection (f), "territory" in a
municipality having a population of 5,000 or less and bordering
on the Gulf of Mexico does not include any area covered by water
and in which no person has a place of business to which a sales
tax permit issued under Subchapter F of Chapter 151 applies.
(h) Expired.
(i) A municipality for which the adoption or increase of a sales
and use tax approved by the voters in an election held after May
1, 1995, and before December 31, 1995, is invalid because the
election combined into a single proposition proposal for adopting
an economic development sales and use tax under Chapter 505,
Local Government Code, and an additional sales and use tax under
Subsection (b) may adopt or increase the sales and use tax
previously approved by the voters by ordinance or resolution of
the governing body of the municipality. If the governing body of
the municipality adopts or increases the sales and use tax under
this subsection, the municipal secretary shall send to the
comptroller by certified or registered mail a certified copy of
the ordinance or resolution. The tax takes effect on the first
day of the month following the expiration of the calendar quarter
occurring after the date on which the comptroller receives the
ordinance or resolution.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1,
1987. Amended by Acts 1987, 70th Leg., 2nd C.S., ch. 54, Sec. 1,
eff. Oct. 20, 1987; Acts 1989, 71st Leg., ch. 2, Sec. 14.14(a),
eff. Aug. 28, 1989; Acts 1989, 71st Leg., ch. 489, Sec. 1, eff.
Aug. 28, 1989; Acts 1991, 72nd Leg., ch. 184, Sec. 2, eff. May
24, 1991; Acts 1991, 72nd Leg., ch. 223, Sec. 1, eff. May 29,
1991; Acts 1993, 73rd Leg., ch. 320, Sec. 1, eff. May 28, 1993;
Acts 1993, 73rd Leg., ch. 1031, Sec. 25, eff. Sept. 1, 1993; Acts
1997, 75th Leg., ch. 65, Sec. 1, eff. May 9, 1997; Acts 1997,
75th Leg., ch. 165, Sec. 30.264, eff. Sept. 1, 1997; Acts 1997,
75th Leg., ch. 705, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 3.73, eff. April 1, 2009.
Sec. 321.102. EFFECTIVE DATES: NEW TAX, TAX REPEAL, BOUNDARY
CHANGE. (a) A tax imposed under this chapter or the repeal of a
tax abolished under this chapter takes effect on the first day of
the first calendar quarter occurring after the expiration of the
first complete calendar quarter occurring after the date on which
the comptroller receives a notice of the action as required by
Section 321.405(b). This subsection does not apply to the
additional municipal sales and use tax.
(b) The additional municipal sales and use tax takes effect or
is increased, reduced, or repealed in the municipality on the
October 1st after the expiration of the first complete calendar
quarter after the date on which the comptroller receives notice
from the municipality of the adoption, increase, reduction, or
repeal of the additional municipal sales and use tax.
(c) If a municipality in which the tax imposed under this
chapter is in effect changes its boundaries, the municipal
secretary shall send by United States registered or certified
mail to the comptroller a certified copy of the ordinance that
adds or detaches municipal territory and that shows the effective
date of the boundary change. The ordinance must be accompanied by
a map clearly showing the added or detached territory. Except as
provided by Subsection (d), the tax takes effect in the added
territory or is inapplicable to the detached territory on the
first day of the first calendar quarter after the comptroller
receives the ordinance and map.
(d) If, within 10 days after the receipt of an ordinance and map
sent under Subsection (c), the comptroller notifies the secretary
of the municipality that more time is required, the effective
date of the application of the tax in the added or detached area
is the first day of the first calendar quarter after the
expiration of the first complete calendar quarter occurring after
the date on which the comptroller receives the ordinance and map.
(e) If as a result of the imposition or increase in a sales and
use tax by a municipality in which there is located all or part
of a local governmental entity that has adopted a sales and use
tax or as a result of the annexation by a municipality of all or
part of the territory in a local governmental entity that has
adopted a sales and use tax the overlapping local sales and use
taxes in the area will exceed two percent, the entity's sales and
use tax is automatically reduced in that area to a rate that when
added to the combined rate of local sales and use taxes will
equal two percent.
(f) If an entity's rate is reduced in accordance with Subsection
(e), the comptroller shall withhold from the municipality's
monthly sales and use tax allocation an amount equal to the
amount that would have been collected by the entity had the
municipality not imposed or increased its sales and use tax or
annexed the area in the entity less amounts that the entity
collects following the municipality's levy of or increase in its
sales and use tax or annexation of the area in the entity. The
comptroller shall withhold and pay the amount withheld to the
entity under policies or procedures that the comptroller
considers reasonable.
(g) Subsections (e) and (f) do not apply if and during any
period in which a local governmental entity has outstanding
indebtedness or obligations that are payable wholly or partly
from the sales and use tax revenue of the entity. A municipality
may not implement the imposition or increase of the sales and use
tax as a result of the circumstances described by Subsection (e)
if, as a result of the implementation of that imposition or
increase, the combined rate of all sales and use taxes imposed by
the municipality, the local governmental entity, and any other
political subdivisions having territory in the district would
exceed two percent at any location in the municipality.
(h) A transit authority is not a local governmental entity for
the purposes of Subsections (e) and (f).
(i) Subsection (g) does not apply to a local governmental entity
or political subdivision created under Chapter 326, Local
Government Code.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1,
1987. Amended by Acts 1989, 71st Leg., ch. 256, Sec. 1, eff.
Sept. 1, 1989; Acts 1991, 72nd Leg., ch. 184, Sec. 3, eff. May
24, 1991; Acts 1999, 76th Leg., ch. 1467, Sec. 2.67, eff. June
19, 1999; Acts 2001, 77th Leg., ch. 1263, Sec. 74, eff. Sept. 1,
2001.
Sec. 321.1025. ANNEXATION TO CERTAIN REGIONAL TRANSPORTATION
AUTHORITIES. (a) A municipality that is wholly or partly
located in a county that contains territory within the boundaries
of a regional transportation authority created under Chapter 452,
Transportation Code, by a principal municipality having a
population of more than 800,000 and that has adopted an
additional sales and use tax for the benefit of the municipality
may hold an election on the question of whether the municipality
shall be annexed to the authority.
(b) The election must be held in the manner required by Chapter
452, Transportation Code.
(c) If the annexation is approved by the voters, the election is
to be treated for all purposes as an election to abolish the
additional sales and use tax in the municipality and the tax is
repealed in the manner provided by this chapter.
Added by Acts 1991, 72nd Leg., ch. 223, Sec. 2, eff. May 29,
1991. Amended by Acts 1997, 75th Leg., ch. 165, Sec. 30.265, eff.
Sept. 1, 1997.
Sec. 321.103. SALES TAX. (a) In a municipality that has
adopted the tax authorized by Section 321.101(a), there is
imposed a tax on the receipts from the sale at retail of taxable
items within the municipality at the rate of one percent and at
the same rate on the receipts from the sale at retail within the
municipality of gas and electricity for residential use.
(b) In a municipality that has adopted the additional municipal
sales and use tax, the tax is imposed at the rate approved by the
voters. The rate, when the tax is adopted, must be equal to
either one-eighth, one-fourth, three-eighths, or one-half of one
percent. The rate may be reduced in one or more increments of
one-eighth of one percent to a minimum of one-eighth of one
percent or increased in one or more increments of one-eighth of
one percent to a maximum of one-half of one percent, or the tax
may be abolished. The rate that the municipality adopts is on the
receipts from the sale at retail of all taxable items within the
municipality and at the same rate on the receipts from the sale
at retail within the municipality of gas and electricity for
residential use unless the residential use of gas and electricity
is exempted from the tax imposed under Section 321.101(a), in
which case the residential use of gas and electricity is exempted
under this subsection also.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1,
1987. Amended by Acts 1991, 72nd Leg., ch. 184, Sec. 4, eff. May
24, 1991.
Sec. 321.104. USE TAX. (a) In a municipality that has adopted
the tax authorized by this chapter, there is imposed an excise
tax on the use, storage, or other consumption within the
municipality of taxable items purchased, leased, or rented from a
retailer during the period that the tax is effective within the
municipality. The rate of the excise tax is the same as the rate
of the sales tax portion of the tax and is applied to the sales
price of the taxable items.
(b) In a municipality that has adopted the tax authorized by
this chapter, there is imposed an excise tax on the use, storage,
or other consumption of gas or electricity for residential
purposes and purchased from any retailer during the period that
the tax is effective within the municipality. The tax is imposed
at the same rate as the tax provided by Subsection (a).
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1,
1987. Amended by Acts 1991, 72nd Leg., ch. 705, Sec. 25, eff.
Sept. 1, 1991.
Sec. 321.105. RESIDENTIAL USE OF GAS AND ELECTRICITY. (a)
There are exempted from the taxes imposed by a municipality under
this chapter the sale, production, distribution, lease, or rental
of, and the use, storage, or other consumption within the
municipality of gas and electricity for residential use in any
municipality that:
(1) adopted the tax on or after October 1, 1979; or
(2) adopted the tax before that time but:
(A) failed to exempt the residential use of gas and electricity
before May 1, 1979; and
(B) has not reimposed the tax as provided by Subsection (c).
(b) A governing body of a municipality that adopted the taxes
under this chapter before October 1, 1979, may, by ordinance
adopted by a vote of a majority of the membership of the
governing body and recorded in the municipal minutes, exempt from
the taxes authorized by this chapter the receipts from the sale,
production, distribution, lease, or rental of, and the use,
storage, or other consumption of gas and electricity for
residential use.
(c) A governing body of a municipality that has adopted the
taxes authorized by this chapter before May 1, 1979, and in which
residential use of gas and electricity is exempted within the
municipality, may reimpose the taxes on gas and electricity for
residential use by ordinance adopted by a vote of the majority of
the membership of the governing body and entered in the municipal
minutes.
(d) The municipal secretary shall send to the comptroller by
United States certified or registered mail a copy of an ordinance
exempting or imposing the taxes on residential use of gas and
electricity.
(e) The exemption or reimposition of taxes on residential use of
gas and electricity takes effect within the municipality as
provided by Section 321.104(a) after receipt of a copy of the
ordinance.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1,
1987.
Sec. 321.1055. IMPOSITION OF FIRE CONTROL OR CRIME CONTROL
DISTRICT TAX ON THE RESIDENTIAL USE OF GAS AND ELECTRICITY. (a)
This section applies to a fire control, prevention, and emergency
medical services district or crime control and prevention
district located in all or part of a municipality that imposes a
tax on the residential use of gas and electricity under Section
321.105.
(b) The board of directors of a district to which this section
applies may, by order or resolution adopted in a public hearing
by a vote of a majority of the membership of the board and
recorded in the district's minutes:
(1) impose a tax adopted under Section 321.106 or 321.108, as
applicable, on receipts from the sale, production, distribution,
lease, or rental of, and the use, storage, or other consumption
within the district of, gas and electricity for residential use;
(2) exempt from taxation the items described by Subdivision (1);
or
(3) reimpose the tax under Subdivision (1).
(c) A district that adopts an order or resolution under
Subsection (b) shall:
(1) send a copy of the order or resolution to the comptroller by
United States certified or registered mail;
(2) send a copy of the order or resolution and a copy of the
district's boundaries to each gas and electric company whose
customers are subject to the tax by United States certified or
registered mail; and
(3) publish notice of the order or resolution in a newspaper of
general circulation in the district.
(d) If the residential use of gas and electricity ceases to be
taxable in the municipality in which a district is located, then
the residential use of gas and electricity is not taxable by the
district.
(e) The provisions of Sections 321.201 and 321.204 that govern
the computation of municipal taxes on gas and electricity for
residential use apply to the computation of district taxes on gas
and electricity for residential use under this section.
Added by Acts 2009, 81st Leg., R.S., Ch.
1420, Sec. 2, eff. January 1, 2010.
Sec. 321.106. FIRE CONTROL DISTRICT TAX. (a) Subject to an
election held in accordance with Chapter 344, Local Government
Code, a municipality in which a fire control, prevention, and
emergency medical services 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 fire control, prevention, and
emergency medical services district. The revenue from the tax may
be used only for the purpose of financing the operation of the
fire control, prevention, and emergency medical services
district. The proposition for adopting a tax under this section
and the proposition for creation of a fire control, prevention,
and emergency medical services district shall be submitted at the
same election. For purposes of Section 321.101, a tax under this
section is not an additional 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 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 fire control, prevention, and emergency medical
services district by order of the board of directors of the fire
control, prevention, and emergency medical services 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
proposition: "The increase of the __________ (name of the
municipality that created the district) Fire Control, Prevention,
and Emergency Medical Services District sales and use tax rate to
______ percent." If there is an increase or decrease under this
section 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 calendar
quarter, and the new rate takes effect on the first day of the
calendar quarter that follows the elapsed quarter.
(d) The comptroller shall remit to the municipality amounts
collected at the rate imposed under this section as part of the
regular allocation of other municipal tax revenue collected by
the comptroller. The municipality shall remit that amount to the
district. A retailer may not be required to use allocation and
reporting procedures in the collection of taxes under this
section that are 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
municipality 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 municipality
under a sales or use tax authorized by another section of this
chapter is not taxable under this section.
(e) If, in a municipality where a fire control, prevention, and
emergency medical services district is composed of the whole
municipality, a municipal sales and use tax or a municipal sales
and use tax rate increase for the purpose of financing a fire
control, prevention, and emergency medical services district is
approved, the municipality is responsible for distributing to the
district that portion of the municipal sales and use tax revenue
received from the comptroller that is to be used for the purposes
of financing the fire control, prevention, and emergency medical
services district. Not later than the 10th day after the date the
municipality receives money under this section from the
comptroller, the municipality shall make the distribution in the
proportion that the fire control, prevention, and emergency
medical services portion of the tax rate bears to the total sales
and use tax rate of the municipality. The amounts distributed to
a fire control, prevention, and emergency medical services
district are not considered to be sales and use tax revenue for
the purpose of property tax reduction and computation of the
municipal tax rate under Section 26.041.
(f) For purposes of the tax imposed under this section, a
reference in this chapter to the municipality as the territory in
which the tax or an incident of the tax applies means only the
territory located in the fire control, prevention, and emergency
medical services district, if that district is composed of an
area less than an entire municipality.
(g) The comptroller may adopt rules and the municipality's
governing body may adopt orders to administer this section.
Added by Acts 2001, 77th Leg., ch. 1295, Sec. 2, eff. June 1,
2001.
Sec. 321.107. ADMINISTRATION OF LOCAL SALES AND USE TAXES
IMPOSED BY OTHER GOVERNMENTAL ENTITIES. The imposition,
computation, administration, enforcement, and collection of any
local sales and use tax imposed by any other local governmental
entity is governed by this chapter, except as otherwise provided
by law. In this section, "other local governmental entity"
includes any governmental entity created by the legislature that
has a limited purpose or function, that has a defined or
restricted geographic territory, and that is authorized by law to
impose a local sales and use tax. The term does not include a
county, county health services district, county landfill and
criminal detention center district, metropolitan transportation
authority, coordinated county transportation authority, economic
development district, crime control district, hospital district,
emergency services district, or library district.
Added by Acts 2003, 78th Leg., ch. 209, Sec. 54, eff. Oct. 1,
2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
326, Sec. 21, eff. September 1, 2007.
Sec. 321.108. MUNICIPAL CRIME CONTROL AND PREVENTION DISTRICT
TAX. (a) Subject to an election held in accordance with Chapter
363, Local Government Code, a municipality 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.
(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 governing body of the municipality that proposed the
creation of the crime control and prevention district may call an
election in the district on the question of decreasing the tax
rate in increments of one-eighth of one percent in the district.
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 rate to ____________ percent."
(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 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
another calendar quarter, and 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 municipality amounts
collected at the rate imposed under this section as part of the
regular allocation of municipal tax revenue collected by the
comptroller if the district is composed of the entire
municipality. The comptroller shall, if the district is composed
of an area less than the entire municipality, remit that amount
to the district. Retailers may not be required to use allocation
and reporting procedures in the collection of taxes under this
section that are 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
municipality 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 municipality
under a sales or use tax authorized by another section of this
chapter is not taxable under this section.
(f) If, in a municipality in which a crime control and
prevention district is composed of the whole municipality, a
municipal sales and use tax or a municipal sales and use tax rate
increase for the purpose of financing a crime control and
prevention district is approved, the municipality is responsible
for distributing to the district that portion of the municipal
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 municipality receives money under this section from the
comptroller, the municipality 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
municipality. The amounts distributed to a crime control and
prevention district are not considered to be additional municipal
sales and use tax revenue for the purpose of property tax
reduction and computation of the municipal tax rate under Section
26.041.
(g) For purposes of the tax imposed under this section, a
reference in this chapter to the municipality 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
municipality.
(h) The comptroller may adopt rules and the governing body of
the municipality may adopt orders to administer this section.
Added by Acts 2007, 80th Leg., R.S., Ch.
1101, Sec. 5, eff. June 15, 2007.
SUBCHAPTER C. COMPUTATION OF TAXES
Sec. 321.201. COMPUTATION OF SALES TAXES. (a) Each retailer in
a municipality that has adopted a tax authorized by this chapter
shall add each sales tax imposed by the municipality under this
chapter and by Chapter 151 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. If the municipality imposes the tax on gas
and electricity for residential use, only the municipal tax is
added to the sales price of sales of gas and electricity for
residential use.
(b) The amount of the total tax is computed by multiplying the
combined applicable tax rates, or the rate of the municipal tax
only for sales of gas and electricity for residential use in a
municipality that imposes the tax on gas and electricity for
residential use, 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 of a
cent is one-half of one cent or more, the fraction shall be
collected as one cent.
(c) The comptroller may publish schedules and brackets of
amounts of taxes based on the formula provided by Subsection (b)
for use in municipalities that have adopted the taxes authorized
by this chapter.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1,
1987.
Sec. 321.202. METHOD OF REPORTING: RETAILERS HAVING SALES BELOW
TAXABLE AMOUNT. 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 state and local taxes.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1,
1987.
For expiration of Subsections (c-2) and (c-3), see Subsection
(c-3).
Sec. 321.203. CONSUMMATION OF SALE. (a) A sale of a taxable
item occurs within the municipality in which the sale is
consummated. A sale is consummated as provided by this section
regardless of the place where transfer of title or possession
occurs.
(b) If a retailer has only one place of business in this state,
all of the retailer's retail sales of taxable items are
consummated at that place of business except as provided by
Subsection (e).
(c) If a retailer has more than one place of business in this
state, each sale of each taxable item by the retailer is
consummated at the place of business of the retailer in this
state where the retailer first receives the order, provided that
the order is placed in person by the purchaser or lessee of the
taxable item at the place of business of the retailer in this
state where the retailer first receives the order.
(c-1) If the retailer has more than one place of business in
this state and Subsection (c) does not apply, the sale is
consummated at the place of business of the retailer in this
state:
(1) from which the retailer ships or delivers the item, if the
retailer ships or delivers the item to a point designated by the
purchaser or lessee; or
(2) where the purchaser or lessee takes possession of and
removes the item, if the purchaser or lessee takes possession of
and removes the item from a place of business of the retailer.
(c-2) Subsection (c) does not apply if:
(1) the taxable item is shipped or delivered from a warehouse:
(A) that is a place of business of the retailer;
(B) in relation to which the retailer has an economic
development agreement with:
(i) the municipality in which the warehouse is located that was
entered into under Chapter 380, 504, or 505, Local Government
Code, or a predecessor statute, before January 1, 2009; or
(ii) the county in which the warehouse is located that was
entered into under Chapter 381, Local Government Code, before
January 1, 2009; and
(C) in relation to which the municipality provides information
relating to the economic development agreement as required by
Subsection (c-3) by the deadline prescribed by that subsection,
or, if appropriate, the county complies with Section 323.203(c-3)
by the deadline prescribed by that section; and
(2) the place of business of the retailer at which the retailer
first receives the order in the manner described by Subsection
(c) is a retail outlet identified in the information required by
Subsection (c-3) or Section 323.203(c-3) as being served by the
warehouse on January 1, 2009.
(c-3) Not later than September 1, 2009, a municipality that has
entered into an economic development agreement described by
Subsection (c-2) shall send to the comptroller information
prescribed by the comptroller relating to the agreement that
identifies each warehouse subject to the agreement and each
retail outlet that, on January 1, 2009, was served by that
warehouse. The comptroller shall prescribe the manner in which
the information must be provided. The provision of information
to the comptroller under this subsection does not affect whether
information described by this subsection is confidential or
excepted from required public disclosure. This subsection and
Subsection (c-2) expire September 1, 2014.
(d) If the retailer has more than one place of business in this
state and Subsections (c) and (c-1) do not apply, the sale is
consummated at:
(1) the place of business of the retailer in this state where
the order is received; or
(2) if the order is not received at a place of business of the
retailer, the place of business from which the retailer's agent
or employee who took the order operates.
(e) A sale of a taxable item is consummated at the location in
this state to which the item is shipped or delivered or at which
possession is taken by the customer if transfer of possession of
the item occurs at, or shipment or delivery of the item
originates from, a location in this state other than a place of
business of the retailer and if:
(1) the retailer is an itinerant vendor who has no place of
business in this state;
(2) the retailer's place of business where the purchase order is
initially received or from which the retailer's agent or employee
who took the order operates is outside this state; or
(3) the purchaser places the order directly with the retailer's
supplier and the item is shipped or delivered directly to the
purchaser by the supplier.
(f) The sale of natural gas and electricity is consummated at
the point of delivery to the consumer.
(g) The sale of mobile telecommunications services is
consummated in accordance with Section 151.061.
(g-1) The sale of telecommunications services sold based on a
price that is measured by individual calls is consummated at the
location where the call originates and terminates or the location
where the call either originates or terminates and at which the
service address is also located.
(g-2) Except as provided by Subsection (g-3), the sale of
telecommunications services sold on a basis other than on a
call-by-call basis is consummated at the location of the
customer's place of primary use.
(g-3) A sale of post-paid calling services is consummated at the
location of the origination point of the telecommunications
signal as first identified by the seller's telecommunications
system or by information received by the seller from the seller's
service provider if the system used to transport the signal is
not that of the seller.
(h) The sale of an amusement service is consummated in the
municipality in which the performance or other delivery of the
service takes place.
(i) If a purchaser who has given a resale certificate makes any
use of a taxable item that subjects the taxable item to the sales
tax under the provisions of Section 151.154, the use or other
consumption of the taxable item that subjected the taxable item
to the tax is consummated at the place where the taxable item is
stored or kept at the time of or just before the use or
consumption.
(j) The sale of services delivered through a cable system is
consummated at the point of delivery to the consumer.
(k) The sale of garbage or other solid waste collection or
removal service is consummated at the location at which the
garbage or other solid waste is located when its collection or
removal begins.
(l) Except as otherwise provided by this section, the sale of a
taxable service, other than a service described by Section
151.330(f), is consummated at the location at which the service
is performed or otherwise delivered.
(l) Repealed by Acts 2007, 80th Leg., R.S., Ch. 1266, Sec.
15(4), eff. September 1, 2007.
(m) If there is no place of business of the retailer because the
comptroller determines that an outlet, office, facility, or
location contracts with a retail or commercial business to
process for that business invoices or bills of lading and that
the outlet, office, facility, or location functions or exists to
avoid the tax imposed by this chapter or to rebate a portion of
the tax imposed by this chapter to the contracting business, a
sale is consummated at the place of business of the retailer from
whom the outlet, office, facility, or location purchased the
taxable item for resale to the contracting business.
(n) A sale of a service described by Section 151.0047 to
remodel, repair, or restore nonresidential real property is
consummated at the location of the job site.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1,
1987. Amended by Acts 1989, 71st Leg., ch. 2, Sec. 14.22(a), eff.
Aug. 28, 1989; Acts 1989, 71st Leg., ch. 810, Sec. 1, eff. Oct.
1, 1989; Acts 1991, 72nd Leg., ch. 705, Sec. 26, eff. Sept. 1,
1991; Acts 2001, 77th Leg., ch. 370, Sec. 2, eff. Aug. 1, 2002;
Acts 2003, 78th Leg., ch. 209, Sec. 55, eff. Oct. 1, 2003; Acts
2003, 78th Leg., ch. 1155, Sec. 2, 3, eff. Sept. 1, 2003; Acts
2003, 78th Leg., ch. 1310, Sec. 115, eff. July 1, 2004.
Amended by:
Acts 2005, 79th Leg., Ch.
728, Sec. 23.001(83), eff. September 1, 2005.
Acts 2007, 80th Leg., R.S., Ch.
1266, Sec. 11, eff. September 1, 2007.
Acts 2007, 80th Leg., R.S., Ch.
1266, Sec. 15(4), eff. September 1, 2007.
Acts 2009, 81st Leg., R.S., Ch.
1360, Sec. 5, eff. June 19, 2009.
Sec. 321.204. COMPUTATION OF USE TAX. (a) In each municipality
that has adopted the taxes authorized by this chapter, the taxes
imposed by Section 321.104(a) and the tax imposed by Subchapter
D, Chapter 151, are added together to form a single combined tax
rate, except:
(1) in a municipality that imposes the tax on gas and
electricity for residential use only the rate of the municipal
tax is used to determine the amount of tax on the use, storage,
or other consumption of gas and electricity for residential use;
and
(2) only the rate of the municipal tax is used in a situation
described by Section 321.205(b).
(b) The formula prescribed by Section 321.201(b) applies to the
computation of the amount of use taxes under this chapter.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1,
1987.
Sec. 321.205. USE TAX: MUNICIPALITY IN WHICH USE OCCURS. (a)
In determining the incidence of the use tax authorized by this
chapter the name of the municipality adopting the tax 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 authorized by this
chapter on the use, storage, or consumption of a taxable item
does not apply if the item is first used, stored, or consumed in
a municipality or area that has not adopted the taxes authorized
by this chapter.
(b) If a sale of a taxable item is consummated in this state but
not within a municipality that has adopted the taxes authorized
by this chapter and the item is shipped directly, or brought by
the purchaser or lessee directly, into a municipality that has
adopted the taxes authorized by this chapter, the item is subject
to the municipality's use tax. The use is considered to be
consummated at the location where the item is first stored, used,
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 and the use of the item is consummated
within a municipality that has adopted the tax authorized by this
chapter, the item is subject to the municipality's use tax 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) The holder of a direct payment permit issued under Chapter
151 who becomes liable for the use tax under this chapter by
reason of the storage, use, or consumption of a taxable item
purchased in this state under a direct payment exemption
certificate shall allocate the tax to the municipality in which
the item was first removed from the permit holder's storage, or
if not stored, the place at which the item was first used or
consumed by the permit holder after transportation. In this
subsection an item is not considered to have been stored, used,
or consumed because of a temporary delay or interruption
necessary and incidental to its transportation or further
fabrication, processing, or assembling within this state for
delivery to the permit holder. A charge for fabrication,
processing, or further assembly in a municipality that has
adopted the tax under this chapter shall be subject to the
municipal use tax.
(e) With respect to a taxable service, "use" means the
derivation in the municipality 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 1991, 72nd Leg., ch. 705, Sec. 27, eff.
Sept. 1, 1991.
Sec. 321.206. INCIDENCE OF ADDITIONAL MUNICIPAL SALES AND USE
TAX. For the purpose of determining the proper sales tax under
this chapter and the proper excise tax on the use, storage, or
other consumption of taxable items under Section 321.101(b):
(1) if a taxable item is used, stored, or otherwise consumed in
a municipality that has adopted the additional municipal sales
and use tax, the statutes listed in Section 322.108(a) apply; and
(2) if the sales tax applies in a municipality that has not
adopted the municipal sales and use tax, the excise tax on the
use, storage, or other consumption of the taxable item does not
apply.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1,
1987. Amended by Acts 1989, 71st Leg., ch. 2, Sec. 14.15(a), eff.
Aug. 28, 1989.
Sec. 321.207. LOCAL TAX INAPPLICABLE WHEN NO STATE TAX;
EXCEPTIONS. (a) The sales tax authorized by this chapter does
not apply to the sale of a taxable item unless the sales tax
imposed by Subchapter C, Chapter 151, also applies to the sale.
(b) The excise tax authorized by this chapter on the use,
storage, or consumption of a taxable item does not apply to the
use, storage, or consumption of a taxable item unless the tax
imposed by Subchapter D, Chapter 151, also applies to the use,
storage, or consumption.
(c) Subsections (a) and (b) do not apply to the taxes authorized
by this chapter on the sale, production, distribution, lease, or
rental of, and the use, storage, or consumption of gas and
electricity for residential use.
(d) Subsection (b) does not apply to the application of the tax
in a situation described by Section 321.205(b).
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1,
1987. Amended by Acts 1991, 72nd Leg., ch. 705, Sec. 28, eff.
Sept. 1, 1991.
Sec. 321.208. STATE EXEMPTIONS APPLICABLE. The exemptions
provided by Subchapter H, Chapter 151, apply to the taxes
authorized by this chapter, except as provided by Section
151.317(b).
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1,
1987.
Sec. 321.209. TRANSITION EXEMPTION: GENERAL PURPOSE SALES AND
USE TAX. (a) For a period of three years only after the
effective date of the tax authorized by Section 321.101(a) in a
municipality, the receipts from the sale of, and the use,
storage, and consumption of, taxable items are exempt from the
tax imposed by the municipality under Section 321.101(a) if the
notice required by Subsection (b) is given and if:
(1) the items are used for the performance of a written contract
entered into before the effective date of the tax imposed under
Section 321.101(a) in the municipality if the contract may be
affected and the contract may not be modified because of the tax;
or
(2) the items are used under the obligation of a bid submitted
before the effective date of the tax imposed under Section
321.101(a) in the municipality if the contract may be affected
and the bid may not be withdrawn or modified because of the tax.
(b) The taxpayer must give the comptroller notice of the
contract or bid on which an exemption is to be claimed within 60
days after the effective date of the tax imposed under Section
321.101(a) in the municipality.
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(d), eff.
Aug. 28, 1989.
Sec. 321.2091. TRANSITION EXEMPTION: ADDITIONAL MUNICIPAL SALES
AND USE TAX. (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 adoption or increase of the additional
municipal sales and use tax if the items are used:
(1) for the performance of a written contract entered into
before the date the adoption or increase of the additional tax
takes effect in the municipality, 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 prior
to the date the adoption or increase of the additional tax takes
effect in the municipality, 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 adoption or increase of the
additional tax takes effect in the municipality.
Added by Acts 1989, 71st Leg., ch. 2, Sec. 14.14(c), eff. Aug.
28, 1989. Amended by Acts 1991, 72nd Leg., ch. 184, Sec. 5, eff.
May 24, 1991.
Sec. 321.210. TELECOMMUNICATIONS EXEMPTION. (a) There are
exempted from the taxes imposed under this chapter the sales
within the municipality of telecommunications services unless the
application of the exemption is repealed under this section. A
municipality may not repeal the application of this exemption as
it applies to interstate long-distance telecommunications
services, but if a municipality 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 municipality
are not subject to taxes imposed under this chapter.
(b) The governing body of a municipality by ordinance adopted by
a majority vote of the governing body in the manner required for
the adoption of other ordinances may repeal the application of
the exemption provided by Subsection (a) for telecommunications
services sold within the municipality.
(c) A municipality that has repealed the application of the
exemption may in the same manner reinstate the exemption.
(d) A vote of the governing body of a municipality repealing the
application of or reinstating the exemption must be entered in
the minutes of the municipality. The municipal secretary shall
send to the comptroller by United States certified or registered
mail a copy of each ordinance adopted under this section. The
repeal of the application of the exemption or a reinstated
exemption takes effect within the municipality as provided by
Section 321.102(a) after receipt of a copy of the ordinance.
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. 33.
SUBCHAPTER D. ADMINISTRATION OF 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.
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.
Sec. 321.3022. TAX INFORMATION. (a) In this section, "other
local governmental entity" has the meaning assigned by Section
321.107.
(a-1) Except as otherwise provided by this section, the
comptroller on request shall provide to a municipality or other
local governmental entity that has adopted a tax under this
chapter:
(1) information relating to the amount of tax paid to the
municipality or other local governmental entity under this
chapter during the preceding or current calendar year by each
person doing business in the municipality or other local
governmental entity who annually remits to the comptroller state
and local sales tax payments of more than $25,000; and
(2) any other information as provided by this section.
(a-2) The comptroller on request shall provide to a municipality
or other local governmental entity that has adopted a tax under
this chapter and that does not impose an ad valorem tax
information relating to the amount of tax paid to the
municipality or other local governmental entity under this
chapter during the preceding or current calendar year by each
person doing business in the municipality or other local
governmental entity who annually remits to the comptroller state
and local sales tax payments of more than $500.
(b) The comptroller on request shall provide to a municipality
or other local governmental entity that has adopted a tax under
this chapter information relating to the amount of tax paid to
the municipality or other local governmental entity under this
chapter during the preceding or current calendar year by each
person doing business in an area, as defined by the municipality
or other local governmental entity, that is part of:
(1) an interlocal agreement;
(2) a tax abatement agreement;
(3) a reinvestment zone;
(4) a tax increment financing district;
(5) a revenue sharing agreement;
(6) an enterprise zone;
(7) a neighborhood empowerment zone;
(8) a crime control and prevention district;
(9) a fire control, prevention, and emergency medical services
district;
(10) any other agreement, zone, or district similar to those
listed in Subdivisions (1)-(9); or
(11) any area defined by the municipality or other local
governmental entity for the purpose of economic forecasting.
(c) The comptroller shall provide the information under
Subsection (b) as an aggregate total for all persons doing
business in the defined area without disclosing individual tax
payments.
(d) If the request for information under Subsection (b) involves
not more than three persons doing business in the defined area
who remit taxes under this chapter, the comptroller shall refuse
to provide the information to the municipality or other local
governmental entity unless the comptroller receives permission
from each of the persons allowing the comptroller to provide the
information to the municipality or other local governmental
entity as requested.
(e) A separate request for information under this section must
be made in writing by the municipality's mayor or chief
administrative officer or by the governing body of the other
local governmental entity each year.
(f) Information received by a municipality or other local
governmental entity under this section is confidential, is not
open to public inspection, and may be used only for the purpose
of economic forecasting, for internal auditing of a tax paid to
the municipality or other local governmental entity under this
chapter, or for the purpose described in Subsection (g).
(g) Information received by a municipality or other local
governmental entity under Subsection (b) may be used by the
municipality or other local governmental entity to assist in
determining revenue sharing under a revenue sharing agreement or
other similar agreement.
(h) The comptroller may set and collect from a municipality or
other local governmental entity reasonable fees to cover the
expense of compiling and providing information under this
section.
(i) Notwithstanding Chapter 551, Government Code, the governing
body of a municipality or other local governmental entity is not
required to confer with one or more employees or a third party in
an open meeting to receive information or question the employees
or third party regarding the information received by the
municipality or other local governmental entity under this
section.
Added by Acts 1995, 74th Leg., ch. 1000, Sec. 70, eff. Oct. 1,
1995. Amended by Acts 1999, 76th Leg., ch. 291, Sec. 1, eff. May
29, 1999; Acts 2001, 77th Leg., ch. 840, Sec. 1, eff. June 14,
2001; Acts 2003, 78th Leg.,