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Senate Bill 1440 |
Senate Author: Hinojosa |
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Effective: Vetoed |
House Sponsor: Luna |
Senate Bill 1440 amends the Government Code and the Tax Code to allow the use of municipal sales and use tax revenue to pay or secure payment of public securities issued by or on behalf of the municipality to finance any public work or other project located wholly or in part in a tax increment reinvestment zone, an enterprise zone, a municipal management district, a public improvement district, an empowerment zone or enterprise community, or a renewal community.
Reason Given for Veto: Senate Bill No. 1440 would allow a municipality to use sales tax dollars to pay for bonds and other financing mechanisms related to tax increment reinvestment zones, designated enterprise or empowerment zones, and other economic development entities. No local vote would be required to approve this change.
I am vetoing Senate Bill No. 1440 because these alternative economic development financing options are designed to be self-supporting, where the development pays for itself through increased property tax revenue from property improvements. Sales tax dollars should not be used to subsidize this development without the consent of the citizens.