By: Harris of Tarrant S.B. No. 124
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the authority of a municipality located in more than
1-2 one county to create an industrial development corporation and to
1-3 levy a sales and use tax.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subdivision (1), Subsection (a), Section 4B,
1-6 Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas
1-7 Civil Statutes), is amended to read as follows:
1-8 (1) "Eligible city" means a city:
1-9 (A) that is located wholly or partly in a county
1-10 with a population of 750,000 or more, according to the most recent
1-11 federal decennial census; and
1-12 (B) in which the combined rate of all sales and
1-13 use taxes imposed by the city, the state, and other political
1-14 subdivisions of the state having territory in the city does not
1-15 exceed 7.25 percent on the date of any election held under or made
1-16 applicable to this section.
1-17 SECTION 2. Subsections (c) and (f), Section 4B, Development
1-18 Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil
1-19 Statutes), are amended to read as follows:
1-20 (c) The board of directors of a corporation under this
1-21 section consists of seven directors who are appointed by the
1-22 governing body of the eligible city for two-year terms of office.
1-23 A director may be removed by the governing body of the eligible
1-24 city at any time without cause. Each director must be a resident
2-1 of the eligible city. Three <At least four directors must be
2-2 persons who are members of the governing body of the eligible city,
2-3 and the remaining three> directors shall be persons who are not
2-4 employees, officers, or members of the governing body of the
2-5 eligible city. A majority of the entire membership of the board is
2-6 a quorum. The board shall conduct all meetings within the
2-7 boundaries of the eligible city. The board shall appoint a
2-8 president, a secretary, and other officers of the corporation that
2-9 the governing body of the eligible city considers necessary. The
2-10 corporation's registered agent must be an individual resident of
2-11 the state and the corporation's registered office must be within
2-12 the boundaries of the eligible city.
2-13 (f) Chapter 321, Tax Code, governs the imposition,
2-14 computation, administration, collection, and remittance of the tax
2-15 except as inconsistent with this section. The tax imposed under
2-16 this section takes effect as provided by Section 321.102(a), Tax
2-17 Code. If, however, an election is held under this section at the
2-18 same time an election is held to impose or change the rate of the
2-19 additional municipal sales and use tax, the tax under this section
2-20 and the imposition or change in rate of the additional municipal
2-21 sales and use tax take effect as provided by Section 321.102(b),
2-22 Tax Code. <Section 321.102(a), Tax Code, does not apply to the tax
2-23 imposed under this section. The ordinance under which the taxes
2-24 authorized by this section are levied must provide for the
2-25 effective date of the tax. That effective date must occur on the
2-26 first day of a month, which day may not be earlier than the 45th
2-27 day after the date of final action of the governing body in
3-1 adopting the ordinance or after the date of the election, whichever
3-2 is later. If the ordinance levying the tax is adopted after the
3-3 election, the presiding officer of the governing body shall, not
3-4 later than the 10th day after the date of the final action in
3-5 adopting the ordinance, send to the comptroller by certified mail a
3-6 copy of the ordinance. The tax is effective on the date specified
3-7 in the ordinance unless the comptroller, within 10 days after the
3-8 receipt of an ordinance sent under this subsection, notifies the
3-9 secretary of the municipality that more time is required, in which
3-10 case the effective date of the application of the tax is the first
3-11 day of the first calendar quarter after the expiration of the first
3-12 complete calendar quarter occurring after the date on which the
3-13 comptroller receives the ordinance.> After the effective date of
3-14 the taxes imposed under this section, the adoption of a sales and
3-15 use tax or the attempted adoption of a sales and use tax by the
3-16 eligible city or any other taxing jurisdiction having territory in
3-17 the city does not impair the taxes imposed under this section.
3-18 SECTION 3. The importance of this legislation and the
3-19 crowded condition of the calendars in both houses create an
3-20 emergency and an imperative public necessity that the
3-21 constitutional rule requiring bills to be read on three several
3-22 days in each house be suspended, and this rule is hereby suspended,
3-23 and that this Act take effect and be in force from and after its
3-24 passage, and it is so enacted.