Bill > HB5252

This bill modifies the legal framework for municipalities in Texas regarding additional sales and use taxes, primarily simplifying the process for adopting, adjusting, or repealing such taxes. The legislation removes previous restrictions that required municipalities to hold elections to implement sales and use taxes, instead allowing municipal governing bodies to adopt, increase, decrease, or repeal these taxes by ordinance or resolution. Key changes include eliminating specific disqualification criteria for municipalities imposing additional sales taxes, modifying ballot language for tax-related elections, and streamlining procedures for changing tax rates. The bill also removes several existing provisions related to sales and use taxes in transportation authorities and clarifies that municipalities can more flexibly adjust their sales tax rates without complex electoral processes. These changes aim to provide municipal governments with greater flexibility in managing local sales tax rates, potentially making it easier for cities to adjust taxation to meet local economic needs. The bill is set to take effect on September 1, 2025, and will apply to sales and use tax changes made on or after that date.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB5252