Texas Tax Code Title 3, Chapter 321 - Municipal Sales And Use Tax Act

SUBCHAPTER A GENERAL PROVISIONS

• Texas Section 321.001 - Short Title
  This chapter may be cited as the Municipal Sales and Use Tax Act. Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept....
• Texas Section 321.002 - Definitions
  (a) In this chapter: (1) "Additional municipal sales and use tax" means only the additional tax authorized by Section 321.101(b). (2) "Municipality" includes any incorporated...
• Texas Section 321.003 - 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...

SUBCHAPTER B IMPOSITION OF SALES AND USE TAXES BY MUNICIPALITIES

• Texas Section 321.004 - References To Sales Or Use Tax
  A reference to a sales tax or a use tax imposed or authorized by this chapter is a reference to both the taxes imposed under...
• Texas Section 321.101 - Tax Authorized
  (a) A municipality may adopt or repeal a sales and use tax authorized by this chapter, other than the additional municipal sales and use tax,...
• Texas Section 321.102 - Effective Dates: New Tax, Tax Repeal, Boundary Change
  (a) A tax imposed under this chapter, a tax rate increase or decrease adopted under this chapter, or the repeal of a tax abolished under...
• Texas Section 321.1025 - Annexation To Certain Regional Transportation Authorities
  (a) A municipality that is wholly or partly located in a county that contains territory within the boundaries of a regional transportation authority created under...
• Texas Section 321.103 - Sales Tax
  (a) In a municipality that has adopted the tax authorized by Section 321.101(a), there is imposed a tax on the receipts from the sale at...
• Texas Section 321.104 - Use Tax
  (a) In a municipality that has adopted the tax authorized by this chapter, there is imposed an excise tax on the use, storage, or other...
• Texas Section 321.1045 - Imposition Of Sales And Use Tax In Certain Federal Military Installations
  (a) This section applies only to a municipality with a population of more than 500,000 that borders the United Mexican States. (b) For purposes of...
• Texas Section 321.105 - Residential Use Of Gas And Electricity
  (a) There are exempted from the taxes imposed by a municipality under this chapter the sale, production, distribution, lease, or rental of, and the use,...
• Texas Section 321.1055 - Imposition Of Fire Control Or Crime Control District Tax On The Residential Use Of Gas And Electricity
  (a) This section applies to a fire control, prevention, and emergency medical services district or crime control and prevention district located in all or part...
• Texas Section 321.106 - Fire Control District Tax
  (a) Subject to an election held in accordance with Chapter 344, Local Government Code, a municipality in which a fire control, prevention, and emergency medical...
• Texas Section 321.107 - Administration Of Local Sales And Use Taxes Imposed By Other Governmental Entities
  The imposition, computation, administration, enforcement, and collection of any local sales and use tax imposed by any other local governmental entity is governed by this...

SUBCHAPTER C COMPUTATION OF TAXES

• Texas Section 321.108 - Municipal Crime Control And Prevention District Tax
  (a) Subject to an election held in accordance with Chapter 363, Local Government Code, a municipality in which a crime control and prevention district is...
• Texas Section 321.201 - Computation Of Sales Taxes
  (a) Each retailer in a municipality that has adopted a tax authorized by this chapter shall add each sales tax imposed by the municipality under...
• Texas Section 321.202 - 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...
• Texas Section 321.203 - Consummation Of Sale
  (a) A sale of a taxable item occurs within the municipality in which the sale is consummated. A sale is consummated as provided by this...
• Texas Section 321.204 - Computation Of Use Tax
  (a) In each municipality that has adopted the taxes authorized by this chapter, the taxes imposed by Section 321.104(a) and the tax imposed by Subchapter...
• Texas Section 321.205 - Use Tax: Municipality In Which Use Occurs
  (a) In determining the incidence of the use tax authorized by this chapter the name of the municipality adopting the tax is substituted in Subchapter...
• Texas Section 321.206 - Incidence Of Additional Municipal Sales And Use Tax
  For the purpose of determining the proper sales tax under this chapter and the proper excise tax on the use, storage, or other consumption of...
• Texas Section 321.207 - Local 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...
• Texas Section 321.208 - State Exemptions Applicable
  The exemptions provided by Subchapter H, Chapter 151, apply to the taxes authorized by this chapter, except as provided by Sections 151.359(j) and 151.317(b). Added...
• Texas Section 321.209 - Transition Exemption: General Purpose Sales And Use Tax
  (a) For a period of three years only after the effective date of the tax authorized by Section 321.101(a) in a municipality, the receipts from...
• Texas Section 321.2091 - Transition Exemption: Additional Municipal Sales And Use Tax
  (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...

SUBCHAPTER D ADMINISTRATION OF TAXES

• Texas Section 321.210 - Telecommunications Exemption
  (a) There are exempted from the taxes imposed under this chapter the sales within the municipality of telecommunications services unless the application of the exemption...
• Texas Section 321.301 - Comptroller To Collect And Administer Taxes
  The comptroller shall administer, collect, and enforce any tax imposed by a municipality under this chapter. The taxes imposed under this chapter and the tax...
• Texas Section 321.302 - Comptroller's Reporting Duties
  (a) The comptroller shall make quarterly reports to a municipality that has adopted the taxes authorized by this chapter if the municipality requests the reports....
• Texas Section 321.3022 - Tax Information
  (a) In this section, "other local governmental entity" has the meaning assigned by Section 321.107. (a-1) Except as otherwise provided by this section, the comptroller...
• Texas Section 321.3025 - Disposition Of Amount Erroneously Collected
  (a) If in a territory added to a municipality a retailer erroneously collects an amount as a tax imposed under this chapter before the date...
• Texas Section 321.303 - 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...
• Texas Section 321.304 - 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...
• Texas Section 321.305 - 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,...
• Texas Section 321.306 - 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....
• Texas Section 321.307 - 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...
• Texas Section 321.308 - 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...
• Texas Section 321.309 - Suit For Tax Collection
  (a) A municipality acting through its attorney may join as a plaintiff in any suit brought by the attorney general to seek a judgment for...
• Texas Section 321.310 - Disapproval Of Municipal Suit
  (a) The comptroller or the attorney general may disapprove of the institution of a suit by a municipality under Section 321.309(b) if: (1) negotiations between...
• Texas Section 321.311 - Judgments In Municipal Suit
  (a) A judgment in a suit under Section 321.309(b) for or against a taxpayer does not affect a claim against the taxpayer by another municipality...

SUBCHAPTER E TAX ELECTION PROCEDURES

• Texas Section 321.312 - Retention Of Certain Municipal Sales Taxes
  A municipality that holds a sales and use tax permit issued by the comptroller and that imposes a sales and use tax may retain the...
• Texas Section 321.401 - Calling Of Election
  (a) An election under this chapter is called by the adoption of an ordinance by the governing body of a municipality. (b) The governing body...
• Texas Section 321.402 - Deadlines After Petition
  (a) After the receipt of a petition for an election under this chapter, the governing body of a municipality shall determine the sufficiency of the...
• Texas Section 321.403 - Time Of Election
  (a) An election under this chapter to adopt the tax authorized under Section 321.101(a) must be held on the first succeeding uniform election date for...
• Texas Section 321.404 - Ballot Wording
  (a) In an election to adopt the tax, the ballot shall be printed to provide for voting for or against the applicable proposition: "A sales...
• Texas Section 321.405 - Official Results Of Election
  (a) Within 10 days after an election in which the voters approve of the adoption, change in rate, or abolition of a tax authorized by...
• Texas Section 321.406 - Frequency Of Election
  An election under this chapter in a municipality may not be held earlier than one year after the date of any previous election under this...
• Texas Section 321.407 - 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...
• Texas Section 321.408 - 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...

SUBCHAPTER F REVENUE DEPOSIT, DISTRIBUTION, AND USE

• Texas Section 321.409 - Combined Municipal Sales Tax Ballot Propositions
  (a) Notwithstanding any provisions of this code or other state law, a municipality may by a combined ballot proposition lower or repeal any dedicated or...
• Texas Section 321.501 - 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 municipality from...
• Texas Section 321.502 - 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 municipal treasurer or...
• Texas Section 321.503 - State's Share
  Before sending any money to a municipality under this subchapter the comptroller shall deduct two percent of the amount of the taxes collected within the...
• Texas Section 321.504 - Amounts Retained In Trust Account
  (a) The comptroller may retain in the suspense account of a municipality a portion of the municipality's share of the tax collected for the municipality...
• Texas Section 321.505 - Interest On Trust Account
  Interest earned on all deposits made with the comptroller under Section 321.501, including interest earned from retained suspense accounts, shall be credited to the general...
• Texas Section 321.506 - Use Of Tax Revenue By Municipality
  Except as provided by Section 321.507, the money received by a municipality under this chapter is for the use and benefit of the municipality and...
• Texas Section 321.507 - Use Of Additional Municipal Sales And Use Tax
  (a) In each year in which a municipality imposes an additional municipal sales and use tax, if the revenue from the collection of the additional...
• Texas Section 321.508 - Pledge Of Tax Revenue
  (a) A municipality may call and hold an election on the issue of authorizing the municipality to pledge a percentage of the sales and use...
• Texas Section 321.509 - Tax Powers Of Municipality Not Limited
  This chapter does not abolish or limit the tax powers of a municipality. Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept....
• Texas Section 321.510 - Reallocation Of Municipal Or Local Governmental Entity Tax Revenue
  (a) In this section, "local governmental entity" includes any governmental entity created by the legislature that has a limited purpose or function, that has a...

Last modified: September 28, 2016