1. (a) The board may impose for the authority a sales and use tax at a permissible rate that does not exceed the rate approved by the voters at an election under this chapter.

2. (b) The board by order may:

   1. (1) decrease the rate of the sales and use tax for the authority to a permissible rate; or
   2. (2) call an election for the increase or decrease of the sales and use tax to a permissible rate.

3. (c) The permissible rates for a sales and use tax imposed under this chapter are:

   1. (1) one-quarter of one percent; and
   2. (2) one-half of one percent.
4. (d) Chapter 322, Tax Code, applies to an authority's sales and use tax.

Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.35(a), eff. Sept. 1, 1997.