Tex. Tax Code § 321.101 · Subchapter B. IMPOSITION OF SALES AND USE TAXES BY MUNICIPALITIES
TAX AUTHORIZED.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(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, and may reduce or increase the rate of the tax, at an election in which a majority of the qualified voters of the municipality approve the adoption, reduction, increase, or repeal of the tax.
(b) A municipality that is not disqualified may, by a majority vote of the qualified voters of the municipality voting at an election held for that purpose, adopt an additional sales and use tax for the benefit of the municipality in accordance with this chapter. A municipality is disqualified from adopting the additional sales and use tax if the municipality:
(1) is included within the boundaries of a rapid transit authority created under Chapter 451, Transportation Code;
(2) is included within the boundaries of a regional transportation authority created under Chapter 452, Transportation Code, by a principal municipality having a population of less than 1.1 million according to the most recent federal decennial census, unless the municipality has a population of 400,000 or more and is located in more than one county;
(3) is wholly or partly located in a county that contains territory within the boundaries of a regional transportation authority created under Chapter 452, Transportation Code, by a principal municipality having a population in excess of 1.1 million according to the most recent federal decennial census, unless:
(A) the municipality is a contiguous municipality; or
(B) the municipality is not included within the boundaries of the authority and is located wholly or partly in a county in which fewer than 250 persons are residents of both the county and the authority according to the most recent federal census; or
(C) the municipality is not and on January 1, 1993, was not included within the boundaries of the authority; or
(4) imposes a tax authorized by Chapter 453, Transportation Code.
(c) For the purposes of Subsection (b), "principal municipality" and "contiguous municipality" have the meanings assigned by Section 452.001, Transportation Code.
(d) In any municipality in which an additional sales and use tax has been imposed, in the same manner and by the same procedure the municipality by majority vote of the qualified voters of the municipality voting at an election held for that purpose may reduce, increase, or abolish the additional sales and use tax.
(e) An authority created under Chapter 451 or 452, Transportation Code, is prohibited from imposing the tax provided for by those chapters if within the boundaries of the authority there is a municipality that has adopted the additional sales and use tax provided for by this section.
(f) A municipality may not adopt or increase a sales and use tax or an additional sales and use tax under this section if as a result of the adoption or increase of the tax the combined rate of all sales and use taxes imposed by the municipality and other political subdivisions of this state having territory in the municipality would exceed two percent at any location in the municipality.
(g) For the purposes of Subsection (f), "territory" in a municipality having a population of 5,000 or less and bordering on the Gulf of Mexico does not include any area covered by water and in which no person has a place of business to which a sales tax permit issued under Subchapter F of Chapter 151 applies.
(h) Expired.
(i) A municipality for which the adoption or increase of a sales and use tax approved by the voters in an election held after May 1, 1995, and before December 31, 1995, is invalid because the election combined into a single proposition proposal for adopting an economic development sales and use tax under Chapter 505, Local Government Code, and an additional sales and use tax under Subsection (b) may adopt or increase the sales and use tax previously approved by the voters by ordinance or resolution of the governing body of the municipality. If the governing body of the municipality adopts or increases the sales and use tax under this subsection, the municipal secretary shall send to the comptroller by certified or registered mail a certified copy of the ordinance or resolution. The tax takes effect on the first day of the month following the expiration of the calendar quarter occurring after the date on which the comptroller receives the ordinance or resolution.
Notes and commentary — not statutory text
History
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. 1, eff. Oct. 20, 1987; Acts 1989, 71st Leg., ch. 2, Sec. 14.14(a), eff. Aug. 28, 1989; Acts 1989, 71st Leg., ch. 489, Sec. 1, eff. Aug. 28, 1989; Acts 1991, 72nd Leg., ch. 184, Sec. 2, eff. May 24, 1991; Acts 1991, 72nd Leg., ch. 223, Sec. 1, eff. May 29, 1991; Acts 1993, 73rd Leg., ch. 320, Sec. 1, eff. May 28, 1993; Acts 1993, 73rd Leg., ch. 1031, Sec. 25, eff. Sept. 1, 1993; Acts 1997, 75th Leg., ch. 65, Sec. 1, eff. May 9, 1997; Acts 1997, 75th Leg., ch. 165, Sec. 30.264, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 705, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.73, eff. April 1, 2009.
Acts 2015, 84th Leg., R.S., Ch. 1122 (H.B. 3777), Sec. 1, eff. September 1, 2015.
Acts 2015, 84th Leg., R.S., Ch. 1246 (H.B. 157), Sec. 12, eff. September 1, 2015.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/TX/htm/TX.321.htm
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- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
This section cites
Provisions in this library that the text above cites, as it prints each citation. A range cited as “ss. 61.13-61.16” links its first and last provisions.
Local Government Code
Transportation Code
- Tex. Transp. Code ch. 451METROPOLITAN RAPID TRANSIT AUTHORITIESPrinted as Chapter 451, Transportation Code
- Tex. Transp. Code ch. 452REGIONAL TRANSPORTATION AUTHORITIESPrinted as Chapter 452, Transportation Code
- Tex. Transp. Code § 452.001DEFINITIONS.Printed as Section 452.001, Transportation Code
- Tex. Transp. Code ch. 453MUNICIPAL TRANSIT DEPARTMENTSPrinted as Chapter 453, Transportation Code
Cited by 45 provisions
Provisions in this library whose text cites Tex. Tax Code § 321.101. Each shows the citation as that text prints it.
Government Code
- Tex. Gov't Code § 476.0051DETERMINATION OF INCREMENTAL INCREASE IN CERTAIN TAX RECEIPTS.Printed as Section 321.101(a), Tax Code
- Tex. Gov't Code § 477.0051DETERMINATION OF INCREMENTAL INCREASE IN CERTAIN TAX RECEIPTS.Printed as Section 321.101(a), Tax Code
- Tex. Gov't Code § 478.0102DETERMINATION OF INCREMENTAL INCREASE IN CERTAIN TAX RECEIPTS.Printed as Section 321.101(a), Tax Code
- Tex. Gov't Code § 479.0052DETERMINATION OF INCREMENTAL INCREASE IN CERTAIN TAX RECEIPTS.Printed as Section 321.101(a), Tax Code
- Tex. Gov't Code § 480.0102DETERMINATION OF INCREMENTAL INCREASE IN CERTAIN TAX RECEIPTS.Printed as Section 321.101(a), Tax Code
Local Government Code
- Tex. Loc. Gov't Code § 334.082TAX CODE APPLICABLE.Printed as Sections 321.101(b), 321.506, and 323.101(b), Tax Code
- Tex. Loc. Gov't Code § 334.083TAX RATE.Printed as Section 321.101(f), Tax Code
- Tex. Loc. Gov't Code § 334.084RATE INCREASE.Printed as Section 321.101(f), Tax Code
- Tex. Loc. Gov't Code § 363.055SALES TAX: RATE; LIMITATION; MUNICIPAL AUTHORITY.Printed as Section 321.101(f), Tax Code
- Tex. Loc. Gov't Code § 387.003CREATION AND FUNCTIONS OF DISTRICT.Printed as Sections 321.101 and 323.101, Tax Code
- Tex. Loc. Gov't Code § 387.007SALES AND USE TAX.Printed as Sections 321.101 and 323.101, Tax Code
- Tex. Loc. Gov't Code § 504.261CONCURRENT ELECTION WITH ELECTION UNDER TAX CODE.Printed as Section 321.101(b), Tax Code
Special District Local Laws Code
- Tex. Spec. Dist. Local Laws Code § 3792.0603SALES AND USE TAX RATE.Printed as Section 321.101(f), Tax Code
- Tex. Spec. Dist. Local Laws Code § 3800.0603SALES AND USE TAX RATE.Printed as Section 321.101(f), Tax Code
- Tex. Spec. Dist. Local Laws Code § 3842.105APPROVAL BY CITY OF NASSAU BAY.Printed as Section 321.101(f), Tax Code
- Tex. Spec. Dist. Local Laws Code § 3901.253SALES AND USE TAX RATE.Printed as Section 321.101(f), Tax Code
- Tex. Spec. Dist. Local Laws Code § 3916.253SALES AND USE TAX RATE.Printed as Section 321.101(f), Tax Code
- Tex. Spec. Dist. Local Laws Code § 3944.203SALES AND USE TAX RATE.Printed as Section 321.101(f), Tax Code
- Tex. Spec. Dist. Local Laws Code § 3945.0603SALES AND USE TAX RATE.Printed as Section 321.101(f), Tax Code
- Tex. Spec. Dist. Local Laws Code § 3967.0603SALES AND USE TAX RATE.Printed as Section 321.101(f), Tax Code
- Tex. Spec. Dist. Local Laws Code § 3971.0603SALES AND USE TAX RATE.Printed as Section 321.101(f), Tax Code
- Tex. Spec. Dist. Local Laws Code § 3973.0603SALES AND USE TAX RATE.Printed as Section 321.101(f), Tax Code
- Tex. Spec. Dist. Local Laws Code § 3975.0603SALES AND USE TAX RATE.Printed as Section 321.101(f), Tax Code
- Tex. Spec. Dist. Local Laws Code § 3979.0603SALES AND USE TAX RATE.Printed as Section 321.101(f), Tax Code
- Tex. Spec. Dist. Local Laws Code § 3982.0603SALES AND USE TAX RATE.Printed as Section 321.101(f), Tax Code
- Tex. Spec. Dist. Local Laws Code § 3984.0603SALES AND USE TAX RATE.Printed as Section 321.101(f), Tax Code
- Tex. Spec. Dist. Local Laws Code § 4017.0603SALES AND USE TAX RATE.Printed as Section 321.101(f), Tax Code
- Tex. Spec. Dist. Local Laws Code § 8013.303SALES AND USE TAX RATE.Printed as Section 321.101(f), Tax Code
- Tex. Spec. Dist. Local Laws Code § 8109.353SALES AND USE TAX RATE.Printed as Section 321.101(f), Tax Code
- Tex. Spec. Dist. Local Laws Code § 8409.153SALES AND USE TAX RATE.Printed as Section 321.101(f), Tax Code
Tax Code
- Tex. Tax Code § 26.012DEFINITIONS.Printed as Section 321.101(b)
- Tex. Tax Code § 31.01TAX BILLS.Printed as Section 321.101(b)
- Tex. Tax Code § 321.002DEFINITIONS.Printed as Section 321.101(b)
- Tex. Tax Code § 321.004REFERENCES TO SALES OR USE TAX.Printed as Sections 321.101(a)
- Tex. Tax Code § 321.103SALES TAX.Printed as Section 321.101(a) | Section 321.101(f)
- Tex. Tax Code § 321.106FIRE CONTROL DISTRICT TAX.Printed as Section 321.101
- Tex. Tax Code § 321.108MUNICIPAL CRIME CONTROL AND PREVENTION DISTRICT TAX.Printed as Section 321.101(f)
- Tex. Tax Code § 321.206INCIDENCE OF ADDITIONAL MUNICIPAL SALES AND USE TAX.Printed as Section 321.101(b)
- Tex. Tax Code § 321.209TRANSITION EXEMPTION: GENERAL PURPOSE SALES AND USE TAX.Printed as Section 321.101(a)
- Tex. Tax Code § 321.403TIME OF ELECTION.Printed as Section 321.101(a)
- Tex. Tax Code § 321.508PLEDGE OF TAX REVENUE.Printed as Section 321.101(a)
Transportation Code
- Tex. Transp. Code § 222.110SALES TAX INCREMENT.Printed as Section 321.101(a), Tax Code
- Tex. Transp. Code § 451.706LIMITATION ON TAX RATE.Printed as Section 321.101(a) or 321.103(a), Tax Code
- Tex. Transp. Code § 453.151BOARD TO ORDER TAX ELECTION.Printed as Section 321.101(b), Tax Code
- Tex. Transp. Code § 460.601DEFINITION.Printed as Section 321.101(a), Tax Code
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.