CHAPTER 324. COUNTY HEALTH SERVICES SALES AND USE TAX
TAX CODE
TITLE 3. LOCAL TAXATION
SUBTITLE C. LOCAL SALES AND USE TAXES
CHAPTER 324. COUNTY HEALTH SERVICES SALES AND USE TAX
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 324.001. COUNTY SALES AND USE TAX ACT APPLICABLE. Except
to the extent that a provision of this chapter applies, Chapter
323 applies to the tax authorized by this chapter in the same
manner as that chapter applies to the tax authorized by that
chapter.
Added by Acts 1989, 71st Leg., 1st C.S., ch. 40, Sec. 7, eff.
Sept. 1, 1989.
SUBCHAPTER B. IMPOSITION OF TAX
Sec. 324.021. TAX AUTHORIZED. (a) A county having a population
of 50,000 or less may adopt, increase, decrease, or abolish the
sales and use tax authorized by this chapter at an election held
in the county.
(b) A county may not adopt or increase a tax under this chapter
if as a result of the adoption of or increase in the tax the
combined rate of all sales and use taxes imposed by the county
and other political subdivisions of this state having territory
in the county would exceed two percent at any location in the
county.
(c) If the voters of a county approve the adoption of or the
increase in the tax at an election held on the same election date
on which another political subdivision adopts a sales and use tax
or approves the increase in the rate of its sales and use tax and
as a result the combined rate of all sales and use taxes imposed
by the county and other political subdivisions of this state
having territory in the county would exceed two percent at any
location in the county, the election to adopt a sales and use tax
under this chapter or increase the tax has no effect.
Added by Acts 1989, 71st Leg., 1st C.S., ch. 40, Sec. 7, eff.
Sept. 1, 1989.
Amended by:
Acts 2005, 79th Leg., Ch.
473, Sec. 1, eff. June 17, 2005.
Sec. 324.022. TAX RATE. (a) The tax authorized by this chapter
may be imposed at the rate of one-half, five-eighths,
three-fourths, seven-eighths, or one percent.
(b) The rate may be reduced in one or more increments of
one-eighth of one percent to a minimum of one-half of one percent
or increased in one or more increments of one-eighth of one
percent to a maximum of one percent, or the tax may be abolished.
Added by Acts 1989, 71st Leg., 1st C.S., ch. 40, Sec. 7, eff.
Sept. 1, 1989.
Amended by:
Acts 2005, 79th Leg., Ch.
473, Sec. 2, eff. June 17, 2005.
Sec. 324.023. SALES AND USE TAX EFFECTIVE DATE. (a) The
adoption, increase, decrease, or abolition of the tax 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 results of the election.
(b) If the comptroller determines that an effective date
provided by Subsection (a) will occur before the comptroller can
reasonably take the action required to begin collecting the tax
or to implement the increase, decrease, or abolition of the tax,
the effective date may be extended by the comptroller until the
first day of the next succeeding calendar quarter.
Added by Acts 1989, 71st Leg., 1st C.S., ch. 40, Sec. 7, eff.
Sept. 1, 1989.
Amended by:
Acts 2005, 79th Leg., Ch.
473, Sec. 3, eff. June 17, 2005.
SUBCHAPTER C. TAX ELECTION PROCEDURES
Sec. 324.061. ELECTION PROCEDURE. (a) An election to adopt,
increase, decrease, or abolish the tax authorized by this chapter
is called by the adoption of an order by the commissioners court
of the county. The commissioners court shall call an election if
a number of qualified voters of the county equal to at least five
percent of the number of registered voters in the county
petitions the commissioners court to call the election.
(b) At an election to adopt the tax, the ballot shall be
prepared to permit voting for or against the proposition: "The
adoption of a local sales and use tax in (name of county) at the
rate of _________ (one-half, five-eighths, three-fourths,
seven-eighths, or one, to be inserted as appropriate) percent to
provide revenue for health services in the county."
(b-1) At an election to increase or decrease the tax, the ballot
shall be prepared to permit voting for or against the
proposition: "The (increase or decrease) of the local sales and
use tax in (name of county) to the rate of _________ (one-half,
five-eighths, three-fourths, seven-eighths, or one, to be
inserted as appropriate) percent to provide revenue for health
services in the county."
(c) At an election to abolish the tax, the ballot shall be
prepared to permit voting for or against the proposition: "The
abolition of the local health services sales and use tax in (name
of county)."
Added by Acts 1989, 71st Leg., 1st C.S., ch. 40, Sec. 7, eff.
Sept. 1, 1989.
Amended by:
Acts 2005, 79th Leg., Ch.
473, Sec. 4, eff. June 17, 2005.
SUBCHAPTER D. USE OF TAX REVENUE
Sec. 324.081. USE OF TAX REVENUE. Revenue from the tax imposed
under this chapter may be used only to provide health services in
the county. The county imposing the tax may allocate all or part
of that revenue to:
(1) a county hospital authority or a hospital district having
the same boundaries as the county; or
(2) a public health district in which the county participates.
Added by Acts 1989, 71st Leg., 1st C.S., ch. 40, Sec. 7, eff.
Sept. 1, 1989.