By: Eckels H.B. No. 1386
73R288 DAK-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the repeal or tax rate rollback of taxes imposed by
1-3 political subdivisions of this state.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subtitle A, Title 3, Tax Code, is amended by
1-6 adding Chapter 303 to read as follows:
1-7 CHAPTER 303. TAX ROLLBACK INITIATIVES
1-8 Sec. 303.001. DEFINITIONS. In this chapter:
1-9 (1) "Political subdivision" means a county,
1-10 municipality, school district, or other special district or
1-11 authority in this state.
1-12 (2) "Tax" means an obligation imposed that is not
1-13 derived from the delivery of a specified service or product or by a
1-14 contract. The term does not include street, sidewalk, or other
1-15 similar assessment beneficial to a specified property owner or any
1-16 fee imposed by or for the benefit of a court.
1-17 Sec. 303.002. ACT NOT APPLICABLE IF ALTERNATIVE METHOD OF
1-18 REDUCTION OR ABOLITION EXISTS. This chapter does not apply to a
1-19 tax imposed by a political subdivision the rate of which can be
1-20 reduced or which can be abolished in an election in the political
1-21 subdivision after petition by the voters under a procedure
1-22 established or authorized by statute other than that provided by
1-23 this chapter.
1-24 Sec. 303.003. REPEAL OF TAX OR TAX ROLLBACK. (a) The
2-1 governing body of a political subdivision shall repeal a tax or
2-2 reduce the rate of a tax imposed by the subdivision as to conform
2-3 with the results of an election under this chapter.
2-4 (b) If a tax is required to be repealed or the rate of a tax
2-5 is required to be reduced under this chapter, the tax is pledged to
2-6 the payment of outstanding obligations, and the tax repeal or rate
2-7 reduction impairs the payment of those obligations, the governing
2-8 body shall continue to impose the tax at the minimum rate
2-9 sufficient to pay the interest and principle on the obligations
2-10 consistent with the rights of the holder of the obligations. When
2-11 the obligations are retired, the governing body shall comply fully
2-12 with Subsection (a).
2-13 Sec. 303.004. REIMPOSITION OF TAX OR TAX RATE. The
2-14 governing body of a political subdivision may not reimpose a tax
2-15 repealed under this chapter or impose a tax rate increase of a tax
2-16 the rate of which was reduced under this chapter unless:
2-17 (1) the imposition is approved by a majority of the
2-18 voters of the political subdivision voting in an election to
2-19 authorize the imposition; or
2-20 (2) the imposition is made in an emergency described
2-21 in the ordinance or order making the imposition and the ordinance
2-22 or order is adopted by a vote of two-thirds of the membership of
2-23 the governing body.
2-24 Sec. 303.005. ELECTION PROCEDURE. (a) Except as provided
2-25 by Subsection (c), the governing body of a political subdivision
2-26 shall call an election to repeal a tax or reduce the rate of a tax
2-27 imposed by the political subdivision if a number of qualified
3-1 voters of the political subdivision equal to at least 10 percent of
3-2 the number of votes cast in the most recent election for governor
3-3 in that political subdivision petitions the governing body for a
3-4 vote on the repeal or reduction of the rate of the tax. The
3-5 governing body of the political subdivision shall determine the
3-6 sufficiency of the petition not later than the 60th day after the
3-7 date that the governing body receives the petition. The governing
3-8 body shall call the election not later than the 60th day after the
3-9 date that the governing body determines that the petition is
3-10 sufficient. The governing body shall hold the election on the next
3-11 uniform election date not less than 30 days after the date the
3-12 governing body calls the election.
3-13 (b) If a majority of those voting at the election approve
3-14 the tax repeal or tax rate reduction, the repeal or reduced rate
3-15 shall take effect on the first day of the calendar quarter
3-16 following the date of the election. If a majority of those voting
3-17 at the election do not approve the tax repeal or tax rate
3-18 reduction, the tax is not changed.
3-19 (c) The governing body of a political subdivision may not
3-20 call an election to repeal or reduce the rate of a tax imposed by
3-21 the political subdivision before the first anniversary of an
3-22 election held under this Act to repeal or reduce the rate of the
3-23 tax without regard to whether the majority of those voting at the
3-24 election approved or disapproved the repeal or reduction.
3-25 SECTION 2. The importance of this legislation and the
3-26 crowded condition of the calendars in both houses create an
3-27 emergency and an imperative public necessity that the
4-1 constitutional rule requiring bills to be read on three several
4-2 days in each house be suspended, and this rule is hereby suspended,
4-3 and that this Act take effect and be in force from and after its
4-4 passage, and it is so enacted.