|
Senate Bill 1199 |
Senate Author: Ellis |
|
Effective: 5-20-05 |
House Sponsor: Coleman |
Senate Bill 1199 amends the Tax Code to allow the governing body of a municipality to dedicate a portion or the amount of the increase in municipal sales tax receipts attributable to a tax increment reinvestment zone for deposit into the tax increment fund for the zone. The bill allows the municipality, before issuing a bond, note, or other obligation pledging the payment of sales tax receipts into the tax increment fund, to enter into an agreement authorizing and directing the comptroller to (1) withhold from any payment to which the municipality may be entitled the amount of the tax increment payment designated above; (2) deposit that amount into the tax increment fund; and (3) continue withholding and making additional payments into the tax increment fund until the fund is sufficient to satisfy certain obligations of the fund. The bill restricts disbursement of sales and use taxes deposited into the fund to payment of (1) bonds, notes, or other obligations issued to finance reinvestment zone projects; (2) the cost of projects within the zone; and (3) any other cost in accordance with an agreement between the board of directors of the reinvestment zone and the municipality's governing body. The bill also allows a local government transportation corporation that has contracted with a reinvestment zone and a municipality to be a party to such agreements.