This comes from the Texas legislative council web page:
The sales and use tax (referred to herein as “sales tax”) imposed on most taxable goods and
services consists of a state sales and use tax and a local sales and use tax. The state sales tax rate is
6.25 percent of the sales price of taxable goods and services, and this rate is uniformly applied to
taxable retail transactions throughout the state. Local jurisdictions, including cities, counties, and
some special districts, may also impose a local sales tax after voter approval, but the sum of all local
sales taxes may not exceed two percent anywhere in the state. The maximum sales tax paid on a
taxable item anywhere in Texas is 8.25 percent.
The imposition of a local sales tax must be approved by the voters residing in the jurisdiction in
which the sales tax is to be imposed. Local sales tax revenues can be used for a variety of purposes,
including general fund purposes, property tax relief, health care for the indigent, crime control,
economic development, support of public libraries, emergency services, street maintenance, and
support of public transit. Because of the variety in local sales tax options, not all Texans pay an 8.25
percent sales tax. Some might pay only a 6.75 percent rate; others might pay a 7.75 or 8.0 percent
sales tax rate, depending on where they purchase a taxable item. This variation reflects the different
kinds of services and levels of services approved by the voters to be funded by local sales taxes.
Cities may levy a local sales tax of up to two percent; counties, up to two percent; transit
authorities, up to one percent; and special districts, up to two percent. State law governs the order in
which these taxes take effect, so as not to exceed the two percent cap on the sum of all local sales
taxes at any location in the state.
In our case 1.5% goes to the city general fund and .5% goes to Sun Metro.
We deserve better