Enrolled Bill Summary

House Bill 3159	House Author:  Isaac
Effective:  9-1-13	Senate Sponsor:  Zaffirini

            House Bill 3159 amends the Health and Safety Code to authorize a municipality and an emergency services district, before or after the municipality annexes for full purposes part of a district that imposes a sales and use tax without removing the annexed area from the district, to agree on an allocation between the municipality and the district of revenue from the sales and use tax imposed in the annexed area. The bill requires the comptroller of public accounts, under policies and procedures that the comptroller considers reasonable, to pay the amounts agreed to between those entities.

The bill establishes that a municipality that enters into an allocation agreement is not required to provide emergency services in the annexed territory and clarifies that the bill's provisions regarding provision of those services control in the case of a conflict with Local Government Code provisions relating to the provision of services to an annexed area or with any other law. The bill also establishes that Tax Code provisions requiring the comptroller to withhold from a municipality's monthly sales and use tax allocation the difference between the amount the annexed entity would have collected had the municipality not annexed the entity and the amounts the entity collects as a result of the automatic reduction in the entity's sales and use tax rate following annexation to maintain the two percent cap on the combined local sales and use tax rates do not apply in the case of an agreement made under the bill's provisions.