(a) If an authority acquires a transit provider that has taxing authority, the authority may impose a sales and use tax at a permissible rate that does not exceed the rate approved by the voters residing in the service area of the transit provider’s transit system at an election under this subchapter.
(b) The authority by resolution may:
(1) decrease the rate of the sales and use tax to a permissible rate; or
(2) call an election for the increase or decrease of the sales and use tax to a permissible rate.

(c) If an authority orders an election, the authority shall publish notice of the election in a newspaper of general circulation in the territory of the authority at least once each week for three consecutive weeks, with the first publication occurring at least 21 days before the date of the election.
(d) A resolution ordering an election and the election notice required by Subsection (c) must show, in addition to the requirements of the Election Code, the hours of the election and polling places in election precincts.
(e) A copy of the election notice required by Subsection (c) shall be furnished to the commission and the comptroller.
(f) The permissible rates for a sales and use tax imposed under this subchapter are:
(1) one-quarter of one percent;
(2) one-half of one percent;
(3) three-quarters of one percent; or
(4) one percent.
(g) Chapter 322, Tax Code, applies to a sales and use tax imposed under this subchapter.