Relating to the authority of a municipality or county to impose a supplemental local sales and use tax to provide additional revenue for property tax relief and general governmental purposes if the tax is approved by the voters; authorizing the imposition of a tax.

HB 312 allows Texas municipalities and counties to seek voter approval for a supplemental local sales tax (up to 1%) to fund property tax relief and general government services. If approved by voters, the tax must be used specifically for reducing property tax rates and supporting local government operations. The bill establishes procedures requiring clear ballot language stating the tax's purpose and specifies that the tax rate won't count toward combined local tax rate limits. This legislation gives local governments a new tool to address budget needs through voter-approved revenue, while maintaining separation from existing sales tax structures.