Texas Special District Local Laws Code 3971.0603 – Sales and Use Tax Rate
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(a) Not later than the 10th day after the date the results are declared of an election held under § 3971.0602 at which the voters authorized imposition of a tax, the board shall provide by resolution or order the initial rate of the tax, which must be in one or more increments of one-eighth of one percent.
(b) After the authorization of a tax under § 3971.0602, the board may decrease the rate of the tax by one or more increments of one-eighth of one percent.
Terms Used In Texas Special District Local Laws Code 3971.0603
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
(c) The board may not decrease the rate of the tax if the decrease would impair the repayment of any outstanding debt or obligation payable from the tax.
(d) The initial rate of the tax or any rate resulting from subsequent decreases may not exceed the lesser of:
(1) the maximum rate authorized at the election held under § 3971.0602; or
(2) a rate that, when added to the rates of all sales and use taxes imposed by other political subdivisions with territory in the district, would result in the maximum combined rate prescribed by § 321.101(f), Tax Code, at any location in the district.