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FOR IMMEDIATE RELEASE Contact: Gabriel J. Valenzuela
January 22, 2003 (512) 463-0690

Rep. Truitt Proposes Street Maintenance Tax Cut

AUSTIN, TX -- During the last legislative session, the Texas Legislature enacted a law to allow a municipality to adopt a locally approved one-fourth of one percent municipal sales and use tax for the purpose of street maintenance. Before the tax can take effect, a majority of voters must first approve the tax in a local option election. In some instances, a one-eighth of one percent municipal sales and use tax could generate sufficient revenues for the needed maintenance. The law, however, does not give municipalities the option to choose a lower tax rate.

To remedy the situation Texas House Representative Vicki Truitt (R-Keller) has filed legislation, House Bill 164, that would enable municipalities to choose from either a one-eighth or a one-fourth of one percent municipal sales and use tax. In addition, a municipality that adopted a one-fourth of one percent rate could lower it to one-eighth through a simple ordinance. If, however, a municipality decided to increase a rate from one-eighth to one-fourth, they could only do so upon approval by the voters in a new local election.

“This is basically just a common sense bill to further empower local governments to formulate good ordinances,” Truitt said. “City Councils can tailor their ordinances to meet their communities’ specific needs without worrying about overburdening taxpayers with unnecessary taxes.”

If passed, the bill will take effect September 1, 2003. The bill could become effective upon passage if it receives two-thirds support in each chamber of the legislature.

To follow the progress of this or any other legislation you can log on to the legislature’s web-site at www.capitol.state.tx.us. Interested individuals can also call the Texas Legislative Reference Library’s toll-free hotline at 877-824-7038 or 512-463-2182. The hotline will be open during the legislative session from 8:00 am to 5:00 pm, Monday through Friday, with extended hours if either chamber is convened.