S.B. No. 1277 amends the Texas Tax Code to modify the municipal sales and use tax for street maintenance. The bill introduces new provisions regarding the expiration and reauthorization of the tax, particularly for municipalities with specific characteristics. Notably, it adds a new category for municipalities with populations under 50,000 that include parts of an international airport and are located in two counties, one of which has a population of over 2.2 million. This category allows for the tax to last until the 10th anniversary of its last reauthorization if approved by voters. Additionally, the bill clarifies the expiration terms for municipalities with populations between 11,450 and 11,550.

Furthermore, the bill revises the language regarding the use of tax revenue, specifying that it can only be used for maintaining and repairing municipal streets, sidewalks, and certain water systems. The changes to the ballot language for reauthorization elections are also highlighted, ensuring that voters are informed about the specific terms under which the tax will expire. The act is set to take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if that threshold is not met.

Statutes affected:
Introduced: Tax Code 327.007 (Tax Code 327)
Senate Committee Report: Tax Code 327.007, Tax Code 327.008 (Tax Code 327)
Engrossed: Tax Code 327.007, Tax Code 327.008 (Tax Code 327)
House Committee Report: Tax Code 327.007, Tax Code 327.008 (Tax Code 327)