CHAPTER 323. COUNTY SALES AND USE TAX ACT

State Codes and Statutes

Back To Homepage

State Codes and Statutes

Statutes > Texas > Tax-code > Title-3-local-taxation > Chapter-323-county-sales-and-use-tax-act

TAX CODE

TITLE 3. LOCAL TAXATION

SUBTITLE C. LOCAL SALES AND USE TAXES

CHAPTER 323. COUNTY SALES AND USE TAX ACT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 323.001. SHORT TITLE. This chapter may be cited as the

County Sales and Use Tax Act.

Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1,

1987.

Sec. 323.002. DEFINITIONS. The words used in this chapter and

defined by Chapters 151 and 321 have the meanings assigned by

Chapters 151 and 321.

Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1,

1987.

Sec. 323.003. 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. 117, eff.

Oct. 1, 2003.

SUBCHAPTER B. IMPOSITION OF SALES AND USE TAXES BY COUNTIES

Sec. 323.101. TAX AUTHORIZED. (a) A qualified county may adopt

or repeal the county sales and use tax authorized by this chapter

at an election in which a majority of the qualified voters of the

county approve the adoption or repeal of the tax, as applicable.

(b) A county is qualified to adopt the tax only if no part of

the county is located in a rapid transit authority created under

Chapter 451, Transportation Code, or a regional transportation

authority created under Chapter 452 of that code.

Transportation Code, is prohibited from imposing the tax provided

for by those chapters in a county in which the county sales and

use tax provided for by this section is in effect or is scheduled

to take effect. For the purposes of this section, an authority is

not considered to be located in any county in which fewer than

250 persons are both residents of the authority and the county.

(d) A county may not adopt a sales and use tax under this

section if as a result of the adoption of 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.

(e) If the voters of a county approve the adoption of a sales

and use tax at an election held on the same election date on

which a municipality having territory in the county adopts a

sales and use tax or an additional 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 county sales and use tax

has no effect.

(f) The provisions of this chapter govern the application,

collection, and administration of a sales and use tax imposed

under Chapter 285, 775, or 776, Health and Safety Code, to the

extent not inconsistent with the provisions of those chapters.

Provided, however, that Subsection (b) shall not apply to a tax

authorized under those chapters.

(g) Expired.

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. 2,

eff. Oct. 20, 1987; Acts 1989, 71st Leg., 1st C.S., ch. 40, Sec.

6, eff. Sept. 1, 1989; Acts 1997, 75th Leg., ch. 65, Sec. 2, eff.

May 9, 1997; Acts 1997, 75th Leg., ch. 165, Sec. 30.272, eff.

Sept. 1, 1997.

Sec. 323.102. EFFECTIVE DATES: NEW TAX, TAX REPEAL. (a) Except

as provided by Subsection (c), a tax imposed under this chapter

takes effect on the October 1st 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 323.405(b).

(b) The repeal of a tax abolished under this chapter takes

effect on the October 1st 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 323.405(b).

326 or 383, Local Government Code, takes effect on 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 a notice of the action as required by

Section 323.405(b).

Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1,

1987. Amended by Acts 1989, 71st Leg., ch. 256, Sec. 2, eff.

Sept. 1, 1989; Acts 1995, 74th Leg., ch. 342, Sec. 1, eff. Aug.

28, 1995; Acts 1999, 76th Leg., ch. 1467, Sec. 2.69, eff. June

19, 1999.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

1266, Sec. 12, eff. September 1, 2007.

Sec. 323.103. SALES TAX. In a county that has adopted the tax

authorized by this chapter, there is imposed a tax on the

receipts from the sale at retail of taxable items within the

county at the rate of one-half of one percent, or in a county

that includes no territory within the limits of a municipality,

one percent.

Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1,

1987.

Sec. 323.104. USE TAX. In a county that has adopted the tax

authorized by this chapter, there is imposed an excise tax on the

use, storage, or other consumption within the county of taxable

items purchased, leased, or rented from a retailer during the

period that the tax is effective within the county. 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 item.

With respect to a taxable service, "use" means the derivation in

the county 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. 32, eff.

Sept. 1, 1991.

Sec. 323.105. CRIME CONTROL DISTRICT TAX. (a) Subject to an

election held in accordance with the Crime Control and Prevention

District Act, a county in which a crime control and prevention

district is established shall adopt a sales and use tax in the

area of the district for the purpose of financing the operation

of the crime control and prevention district. The revenue from

the tax may be used only for the purpose of financing the

operation of the crime control and prevention district. The

proposition for adopting a tax under this section and the

proposition for creation of a crime control and prevention

district shall be submitted at the same election. For purposes of

Subsection (c) of Section 323.101 of this code, a tax under this

section is not a county sales and use tax.

(b) A tax adopted for a district under this section for

financing the operation of the district may be decreased in

increments of one-eighth of one percent by order of the board of

directors of the district.

governmental entity that proposed the creation of the crime

control and prevention district may call an election on the

question of decreasing the tax rate in increments of one-eighth

of one percent in the district if the district was created before

January 1, 1996. The board of directors or governing body may

dedicate a portion of the tax for the payment of bonds used in

conjunction with the renovation or extension of a county-owned or

municipally owned convention center facility, as defined in

Section 351.001, that was constructed before 1969 if the

dedication is approved by a majority of the qualified voters in

an election held in the district on the question of decreasing

the tax rate. At the election, the ballot shall be printed to

provide for voting for or against the following proposition: "The

decrease of the _______ Crime Control and Prevention District

sales and use tax to _____ percent and authorizing the use of

______ of one percent for the payment of bonds issued for the

renovation or extension of certain county-owned or municipally

owned convention center facilities as that term is defined under

Section 351.001, Tax Code, and authorizing that the tax expire on

payment of the bonds."

(d) The rate of a tax adopted for a district under this section

may be increased in increments of one-eighth of one percent, not

to exceed a total tax rate of one-half percent for financing the

operation of the crime control and prevention district, by order

of the board of directors of the crime control and prevention

district if approved by a majority of the qualified voters voting

at an election called by the board and held in the district on

the question of increasing the tax rate. At the election, the

ballot shall be printed to provide for voting for or against the

following proposition: "The increase of the ____________ Crime

Control and Prevention District sales and use tax rate to

____________ percent." If there is an increase or decrease under

this subsection in the rate of a tax imposed under this section,

the new rate takes effect on the first day of the next calendar

quarter after the expiration of one calendar quarter after the

comptroller receives notice of the increase or decrease. However,

if the comptroller notifies the president of the board of

directors of the district in writing within 10 days after receipt

of the notification that the comptroller requires more time to

implement reporting and collection procedures, the comptroller

may delay implementation of the rate change for one whole

calendar quarter. In that event, the new rate takes effect on the

first day of the next calendar quarter following the elapsed

quarter.

(e) The comptroller shall remit to the county amounts collected

at the rate imposed under this section as part of the regular

allocation of county tax revenue collected by the comptroller if

the district is composed of the entire county. The comptroller

shall, if the district is composed of an area less than the

entire county, remit that amount to the district. Retailers may

not be required to use the allocation and reporting procedures in

the collection of taxes under this section different from the

procedures that retailers use in the collection of other sales

and use taxes under this chapter. An item, transaction, or

service that is taxable in a county under a sales or use tax

authorized by another section of this chapter is taxable under

this section. An item, transaction, or service that is not

taxable in a county under a sales or use tax authorized by

another section of this chapter is not taxable under this

section.

(f) If, in a county where a crime control and prevention

district is composed of the whole county, a county sales and use

tax or a county sales and use tax rate increase for the purpose

of financing a crime control and prevention district is approved,

the county is responsible for distributing to the district that

portion of the county sales and use tax revenue received from the

comptroller that is to be used for the purposes of financing the

crime control and prevention district. Not later than the 10th

day after the date the county receives funds under this section

from the comptroller, the county shall make the distribution in

the proportion that the crime control and prevention portion of

the tax rate bears to the total sales and use tax rate of the

county. The amounts distributed to a crime control and prevention

district are not considered to be sales and use tax revenue for

the purpose of property tax reduction and computation of the

county tax rate under Section 26.041, Tax Code.

(g) For purposes of the tax imposed under this section, a

reference in this chapter to the county as the territory in which

the tax or an incident of the tax applies means only the

territory located in the crime control and prevention district,

if that district is composed of an area less than an entire

county.

(h) The comptroller may adopt rules and the county commissioners

court may adopt orders to administer this section.

Added by Acts 1989, 71st Leg., ch. 664, Sec. 2, eff. June 14,

1989. Amended by Acts 1993, 73rd Leg., ch. 864, Sec. 15, eff.

June 18, 1993; Acts 1997, 75th Leg., ch. 1248, Sec. 6, eff. June

20, 1997; Acts 1999, 76th Leg., ch. 1467, Sec. 2.70, eff. Oct. 1,

1999.

SUBCHAPTER C. COMPUTATION OF TAXES

Sec. 323.201. COMPUTATION OF SALES TAXES. (a) Each retailer in

a county that has adopted the tax authorized by this chapter

shall add the sales tax imposed by this chapter and by Chapter

151, plus any other applicable sales tax, 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 of a cent is one-half of one cent or more, the fraction

shall be collected as one cent.

Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1,

1987.

Sec. 323.202. 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. 323.203. CONSUMMATION OF SALE. (a) A sale of a taxable

item occurs within the county 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).

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.

Text of subsection effective until September 01, 2014

(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 county in which the warehouse is located that was

entered into under Chapter 381, Local Government Code, before

January 1, 2009; or

(ii) 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; and

relating to the economic development agreement as required by

Subsection (c-3) by the deadline prescribed by that subsection,

or, if appropriate, the municipality complies with Section

321.203(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

Subsection (c-3) or Section 321.203(c-3) as being served by the

warehouse on January 1, 2009.

(c-3) Not later than September 1, 2009, a county 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

county 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) Repealed by Acts 2007, 80th Leg., R.S., Ch. 1266, Sec.

15(5), eff. September 1, 2007.

(m) 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(b), eff.

Aug. 28, 1989; Acts 1989, 71st Leg., ch. 810, Sec. 2, eff. Oct.

1, 1989; Acts 1991, 72nd Leg., ch. 705, Sec. 33, eff. Sept. 1,

1991; Acts 2001, 77th Leg., ch. 370, Sec. 3, eff. Aug. 1, 2002;

Acts 2003, 78th Leg., ch. 209, Sec. 58, eff. Oct. 1, 2003; Acts

2003, 78th Leg., ch. 1310, Sec. 118, eff. July 1, 2004.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

1266, Sec. 13, eff. September 1, 2007.

Acts 2007, 80th Leg., R.S., Ch.

1266, Sec. 15(5), eff. September 1, 2007.

Acts 2009, 81st Leg., R.S., Ch.

1360, Sec. 8, eff. June 19, 2009.

Sec. 323.204. COMPUTATION OF USE TAX. In each county that has

adopted the taxes authorized by this chapter, the tax imposed by

Section 323.104, by other applicable local taxes, and by

Subchapter D, Chapter 151, are added together to form a single

combined tax rate, except only the rate of the county tax is used

in a situation described by Section 323.205(b).

Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1,

1987.

Sec. 323.205. USE TAX: COUNTY IN WHICH USE OCCURS. (a) In

determining the incidence of the use tax authorized by this

chapter, the name of the county 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 taxable item is first used, stored, or consumed in a

county 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 county that has adopted the taxes authorized by this

chapter and the taxable item is shipped directly, or brought by

the purchaser or lessee directly, into a county that has adopted

the taxes authorized by this chapter, the taxable item is subject

to the county'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.

customer within this state and the use of the taxable item is

consummated within a county that has adopted the tax authorized

by this chapter, the taxable item is subject to a county's use

tax and not its sales tax. A use is considered to be consummated

at the first point in this state where the taxable 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 county 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 county that has adopted the

tax under this chapter shall be subject to the county use tax.

Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1,

1987. Amended by Acts 1991, 72nd Leg., ch. 705, Sec. 34, eff.

Sept. 1, 1991.

Sec. 323.206. COUNTY 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 an item unless the tax imposed by

Subchapter D, Chapter 151, also applies to the use, storage, or

consumption.

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 323.205(b).

Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1,

1987. Amended by Acts 1991, 72nd Leg., ch. 705, Sec. 35, eff.

Sept. 1, 1991.

Sec. 323.207. 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. 323.208. TELECOMMUNICATIONS EXEMPTION. (a) There are

exempted from the taxes imposed under this chapter the sale

within the county of telecommunications services unless the

application of the exemption is repealed under this section. A

county may not repeal the application of this exemption as it

applies to interstate long-distance telecommunications services,

but if a county 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 county are not subject to

taxes imposed under this chapter.

(b) The commissioners court of a county by a majority vote may

repeal the application of the exemption provided by Subsection

(a) for telecommunications services sold within the county.

may in the same manner reinstate the exemption.

(d) A vote of the commissioners court repealing the application

of or reinstating the exemption must be entered in the minutes of

the court. The county judge 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

county 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 notification 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. 35.

Sec. 323.209. TRANSITION EXEMPTION. (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 by a

county under this chapter if the items are used:

(1) for the performance of a written contract entered into

before the date the tax takes effect in the county, 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 county, 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 county.

Added by Acts 1989, 71st Leg., ch. 2, Sec. 14.17(a), eff. Aug.

28, 1989.

SUBCHAPTER D. ADMINISTRATION OF TAXES

Sec. 323.301. COMPTROLLER TO COLLECT AND ADMINISTER TAXES. The

comptroller shall administer, collect, and enforce any tax

imposed by a county under this chapter. The tax 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. 323.302. COMPTROLLER'S REPORTING DUTIES. (a) The

comptroller shall make quarterly reports to a county that has

adopted the taxes authorized by this chapter if the county

requests the reports. A report must include the name, address,

and account number of each person in the county that has remitted

to the comptroller a tax payment during the quarter covered by

the report.

(b) If a county requests an additional report, the comptroller

shall make an additional quarterly report to the county including

the name, address, and account number, if any, of, and the amount

of tax due from, each person doing business in the county who has

failed to pay the tax under this chapter to the county 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.

county is not included in a comptroller's report, the county

shall report to the comptroller the name and address of the

person. Within 90 days after receiving the report from a county,

the comptroller shall send to the county:

(1) an explanation as to why the person is not obligated for the

county tax;

(2) a statement that the person is obligated for the county tax

and the tax is delinquent; or

(3) a certification that the person is obligated for the county

tax and that the full amount of the tax due has been credited to

the county's account.

(d) The comptroller shall send by United States certified or

registered mail to the county attorney a notice of each person

who is delinquent in the payment to the county 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. 323.3022. TAX INFORMATION. (a) 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 imposition, computation, administration, enforcement, and

collection of which is governed by this chapter.

(b) Except as otherwise provided by this section, the

comptroller on request shall provide to a county or other local

governmental entity that has adopted a tax under this chapter:

(1) information relating to the amount of tax paid to the county

or other local governmental entity under this chapter during the

preceding or current calendar year by each person doing business

in the county 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.

other local governmental entity that has adopted a tax under this

chapter information relating to the amount of tax paid to the

county 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 county 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) any other agreement, zone, or district similar to those

listed in Subdivisions (1)-(6); or

(8) any area defined by the county or other local governmental

entity for the purpose of economic forecasting.

(d) The comptroller shall provide the information under

Subsection (c) as an aggregate total for all persons doing

business in the defined area without disclosing individual tax

payments.

(e) If the request for information under Subsection (c) 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 county or other local

governmental entity unless the comptroller receives permission

from each of the persons allowing the comptroller to provide the

information to the county or other local governmental entity as

requested.

(f) A separate request for information under this section must

be made in writing each year by the county judge or the governing

body of the other local governmental entity.

(g) Information received by a county 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 county or

other local governmental entity under this chapter, or for the

purpose described by Subsection (h).

(h) Information received by a county or other local governmental

entity under Subsection (c) may be used by the county or other

local governmental entity to assist in determining revenue

sharing under a revenue sharing agreement or other similar

agreement.

(i) The comptroller may set and collect from a county or other

local governmental entity reasonable fees to cover the expense of

compiling and providing information under this section.

(j) Notwithstanding Chapter 551, Government Code, the

commissioners court of a county or the governing body of the

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 county or other local

governmental entity under this section.

Added by Acts 2009, 81st Leg., R.S., Ch.

1360, Sec. 9, eff. September 1, 2009.

Sec. 323.303. 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.

certificate for a prior contract exemption under this chapter.

Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1,

1987.

Sec. 323.304. 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.

Sec. 323.305. 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.

Sec. 323.306. 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.

Sec. 323.307. 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.

Sec. 323.308. 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, any remainder

to the amounts due to a municipality to which the taxes are due

under Chapter 321, and any remainder to the amounts due to a

county to which taxes are due.

Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1,

1987.

Sec. 323.309. SUIT FOR TAX COLLECTION. (a) A county 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 county under this chapter.

(b) A county may bring suit for the collection of taxes owed to

the county under this chapter if:

(1) the taxes are certified by the comptroller in the notice

required by Section 323.302(d);

(2) a written notice of the tax delinquency and the county'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.

Sec. 323.310. DISAPPROVAL OF COUNTY SUIT. (a) The comptroller

or the attorney general may disapprove of the institution of a

suit by a county under Section 323.309(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 county 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 county must be in writing and

give the reason for the determination by the comptroller or

attorney general.

(d) Not earlier than one year after the date of a disapproval of

the institution of a county collection suit, the county may again

proceed as provided by Section 323.309(b) even though the

liability of the taxpayer includes taxes for which the county 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.

Sec. 323.311. JUDGMENTS IN COUNTY SUIT. (a) A judgment in a

suit under Section 323.309(b) for or against a taxpayer does not

affect a claim against the taxpayer by another county, a

municipality, or the state unless the state is party to the suit.

(b) A county 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.

in each judgment received by the county and is responsible for

the renewal of the judgment before its expiration.

(d) The county shall send to the comptroller for deposit in the

county's suspense account the amount of any taxes collected on

the judgment.

Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1,

1987.

Sec. 323.312. RETENTION OF CERTAIN COUNTY SALES TAXES. A county

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 county collects and that constitutes the

county's own tax. The county 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. 77, eff. Oct. 1,

2001.

SUBCHAPTER E. TAX ELECTION PROCEDURES

Sec. 323.401. CALLING OF ELECTION. (a) An election under this

chapter is called by the adoption of an order by the

commissioners court of a county.

(b) The commissioners court may call the election by a vote of a

majority of its members.

of qualified voters of the county equal to at least five percent

of the number of registered voters in the county petitions for a

vote on the question.

Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1,

1987.

Sec. 323.402. DEADLINES AFTER PETITION. (a) After the receipt

of a petition for an election under this chapter, the

commissioners court shall determine the sufficiency of the

petition within 30 days.

(b) If the petition is sufficient, the commissioners court 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.

Sec. 323.403. TIME OF ELECTION. An election under this chapter

must be held on the next uniform election day not less than 30

days after the day on which the order calling the election was

passed.

Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1,

1987.

Sec. 323.404. BALLOT WORDING. (a) Except as provided by

Subsection (b), in an election to adopt the tax, the ballot shall

be printed to provide for voting for or against the proposition:

"Adoption of a one-half percent county sales and use tax within

the county to be used to reduce the county property tax rate."

(b) In an election in a county that includes no territory within

the limits of a municipality, the ballot shall be printed to

provide for voting for or against the proposition: "Adoption of a

one percent county sales and use tax within the county to be used

to reduce the county property tax rate."

printed to provide for voting for or against the proposition:

"Abolition of the county sales and use tax within the county."

Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1,

1987.

Sec. 323.405. OFFICIAL RESULTS OF ELECTION. (a) Within 10 days

after an election in which the voters of a county approve of the

adoption or abolition of the tax authorized by this chapter, the

commissioners court of the county shall, by resolution 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

county judge shall send to the comptroller by United States

certified or registered mail a certified copy of the resolution.

Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1,

1987.

Sec. 323.406. FREQUENCY OF ELECTION. An election under this

chapter in a county may not be held earlier than one year after

the date of any previous election under this chapter in the

county.

Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1,

1987.

Sec. 323.407. 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.

Sec. 323.408. 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 county judge shall notify the comptroller by United States

certified or registered mail and enclose a certified copy of the

final judgment.

change in the tax status of the county under this chapter, the

tax or the abolition of the tax takes effect as provided by

Section 323.102 except that the notice of the final judgment is

substituted for the notice of election results prescribed by

Section 323.405.

Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1,

1987.

SUBCHAPTER F. REVENUE DEPOSIT, DISTRIBUTION, AND USE

Sec. 323.501. 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 county from which

the taxes were collected.

(b) Repealed by Acts 2003, 78th Leg., ch. 285, Sec. 31(45).

(d) Repealed by Acts 2003, 78th Leg., ch. 285, Sec. 31(45).

Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1,

1987. Amended by Acts 1997, 75th Leg., ch. 1423, Sec. 19.126,

eff. Sept. 1, 1997; Acts 2003, 78th Leg., ch. 285, Sec. 31(45),

eff. Sept. 1, 2003.

Sec. 323.502. 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 county treasurer

payable to the county the county'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.

Sec. 323.503. STATE'S SHARE. Before sending any money to a

county under this subchapter the comptroller shall deduct two

percent of the amount of the taxes collected within the county

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 323.501(c), credit the money

deducted to the general revenue fund.

Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1,

1987.

Sec. 323.504. AMOUNTS RETAINED IN TRUST ACCOUNT. (a) The

comptroller may retain in the suspense account of a county a

portion of the county's share of the tax collected for the county

under this chapter, not to exceed five percent of the amount

remitted to the county. If the county has abolished the tax, the

amount that may be retained may not exceed five percent of the

final remittance to the county at the time of the termination of

the collection of the tax.

(b) From the amounts retained in a county'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.

of the abolition of a county's tax under this chapter the

comptroller shall send to the county the remainder of the money

in the county's account and shall close the account.

Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1,

1987.

Sec. 323.5041. INTEREST ON TAX REVENUE. Interest earned on all

deposits made with the comptroller under this chapter, including

interest earned from the suspense accounts retained under Section

323.504, shall be credited to the general revenue fund.

Added by Acts 1989, 71st Leg., ch. 2, Sec. 14.18(a), eff. Aug.

28, 1989. Amended by Acts 1997, 75th Leg., ch. 1423, Sec. 19.127,

eff. Sept. 1, 1997.

Sec. 323.505. USE OF TAX REVENUE. (a) The money received by a

county under this chapter is for the use and benefit of the

county and shall be used for the replacement of property tax

revenue lost as a result of the adoption of the taxes authorized

by this chapter. Except as provided by Subsection (b), the

revenue in excess of the revenue used to replace those property

taxes shall be used for the reduction of indebtedness of the

county. After all indebtedness is paid, the excess may be used

for any purpose for which county general revenue may be used. A

county may not pledge anticipated revenue from this source to

secure the payment of bonds or other indebtedness for a period

longer than one year.

(b) Revenue collected from the tax imposed under this chapter in

each of the first three years in which the tax is imposed in the

county 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 used only if and to the extent that taxes or other revenues of

the county are collected in amounts less than anticipated. After

that period, the revenue in the fund may be used for any purpose

for which county general revenue may be used. The fund ceases to

exist when all revenue deposited in the fund has been spent.

Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1,

1987. Amended by Acts 1989, 71st Leg., ch. 2, Sec. 14.18(b), eff.

Aug. 28, 1989; Acts 1991, 72nd Leg., ch. 16, Sec. 17.07, eff.

Aug. 26, 1991.

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

Loading..

Loading, Please Wait!