The bill, titled H.B. No. 312, proposes the establishment of a supplemental local sales and use tax that municipalities and counties in Texas can impose to generate additional revenue for property tax relief and general governmental purposes, contingent upon voter approval. The bill introduces Chapter 328 to the Tax Code, which defines the supplemental local sales and use tax and outlines its applicability, stating that it will not be included in the calculation of the combined local tax rate. It also specifies that municipalities and counties can adopt or abolish this tax through elections, with a maximum rate set at one percent.

Additionally, the bill amends existing sections of the Tax Code to incorporate references to the new chapter, allowing for the inclusion of the supplemental local sales and use tax in definitions and tax calculations. Specifically, it modifies the definitions of "additional sales and use tax" and the requirements for tax bills to indicate the potential impact of the new tax on ad valorem taxes. The provisions of the bill will take effect on the 91st day after the legislative session, with specific sections related to ad valorem taxes becoming effective on January 1, 2026.

Statutes affected:
Introduced: Tax Code 26.012, Tax Code 31.01 (Tax Code 31, Tax Code 26)