SALES AND USE TAX RATE

(a) Not later than the 10th day after the date the results are declared of an election held under Section 8013.302, at which the voters approved imposition of the tax authorized by this subchapter, the board shall determine the initial rate of the tax, which must be in one or more increments of one-eighth of one percent. (b) After the election held under Section 8013.302, the board may decrease the rate of the tax by one or more increments of one-eighth of one percent. (c) The rate of the tax may not exceed the lesser of: (1) the maximum rate authorized by the district voters at the election held under Section 8013.302; (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 Section 321.101(f), Tax Code, at any location in the district; or (3) the sales and use tax rate adopted by the City of Austin. (d) The board shall notify the comptroller of any changes made to the tax rate in the same manner the municipal secretary provides notice to the comptroller under Section 321.405(b), Tax Code.