(a) In this section, “special sales and use tax” means a sales and use tax levied by a municipality that is in excess of one percent.
(b) This section applies only to a municipality that levies a special sales and use tax that, when combined with the authority’s sales and use tax, would result in a sales and use tax rate of more than two percent in the territory of the municipality.

(c) A municipality that does not have territory that is part of an authority may be added to the territory of an authority on a date determined by the executive committee if:
(1) any part of the territory of the municipality is located in a county in which the authority has territory or in a county that is adjacent to a county in which the authority has territory;
(2) the executive committee states, by resolution, the authority’s intention to provide transportation services in the territory of the municipality;
(3) the governing body of the municipality calls an election on the addition of the territory of the municipality to the territory of the authority; and
(4) a majority of the votes cast in the election favor the proposition.
(d) The election in a municipality to approve the addition of the territory of the municipality to the territory of the authority is to be treated for all purposes as an election to reduce the rate of the municipality’s special sales and use tax, on the effective date determined by the executive committee, to the highest rate that will not impair the imposition of the authority’s sales and use tax.
(e) At any time after the date of the election approving the addition of the territory of the municipality to the territory of the authority, the executive committee and the governing body of the municipality may enter into an interlocal agreement that provides for the eventual admission of the territory of the municipality to the territory of the authority.
(f) Notwithstanding § 452.607, a sales and use tax imposed by the authority takes effect in the territory of the municipality on the first day of the first calendar quarter that begins after the date the comptroller receives a certified copy of an order adopted by the executive committee adding the territory of the municipality, accompanied by a map of the authority clearly showing the territory added.