S.B. No. 345
AN ACT
1-1 relating to tax abatement, reinvestment zones, and the refund of
1-2 certain taxes by the comptroller to reimburse certain taxes paid on
1-3 property in a reinvestment zone and to the creation of development
1-4 districts in certain counties, which districts may adopt and levy a
1-5 sales and use tax, receive the proceeds of a hotel occupancy tax,
1-6 issue bonds, and exercise the power of eminent domain.
1-7 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-8 SECTION 1. Chapter 111, Tax Code, is amended by adding
1-9 Subchapter F to read as follows:
1-10 SUBCHAPTER F. TAX REFUND FOR ECONOMIC DEVELOPMENT
1-11 Sec. 111.301. REFUND OF STATE TAXES; APPLICATION FOR REFUND.
1-12 (a) An eligible person is entitled to a refund of state sales and
1-13 use taxes imposed under Chapter 151 and state franchise taxes
1-14 imposed under Chapter 171 paid in a calendar year for which the
1-15 person paid ad valorem taxes to a school district on property that
1-16 in that year is:
1-17 (1) located in a reinvestment zone established under
1-18 Chapter 312;
1-19 (2) exempt in whole or in part from the payment of ad
1-20 valorem taxes imposed by a municipality or a county under a tax
1-21 abatement agreement entered into with the municipality or county
1-22 under Chapter 312; and
1-23 (3) not subject to a tax abatement agreement entered
1-24 into by the school district.
2-1 (b) No refund may be made under this section if the person
2-2 makes a payment in lieu of taxes, or any other payment, including a
2-3 gift, grant, donation, or provision of in-kind service, to a
2-4 municipality or county with which the person has executed a tax
2-5 abatement agreement, if the payment was made during the period of
2-6 the agreement. This subsection does not apply to a payment that is
2-7 a tax, fee, or charge for services provided by the municipality or
2-8 county, or to payments pursuant to a contract with an industrial
2-9 district under Chapter 42 or Chapter 43, Local Government Code, or
2-10 to a payment that in any year of the agreement does not in the
2-11 aggregate exceed $5,000 in value.
2-12 (c) The amount of a refund may not exceed the amount of net
2-13 state sales and use and state franchise taxes paid by the person,
2-14 after any applicable tax credit, in that year. A person is
2-15 entitled to a refund under this section for the lesser of five
2-16 years or the duration of the tax abatement agreement. If the tax
2-17 abatement agreement is cancelled or the person relocates the
2-18 person's business outside the zone, a person may not apply for a
2-19 refund after the date of the cancellation or the date of the
2-20 relocation, as applicable.
2-21 (d) To be eligible for the refund:
2-22 (1) a person must have:
2-23 (A) established a new business in the
2-24 reinvestment zone;
2-25 (B) expanded an existing business located in the
2-26 reinvestment zone; or
2-27 (C) modernized an existing business located in
3-1 the reinvestment zone to retain jobs of employees of the business;
3-2 (2) that business must have had:
3-3 (A) since the date the person entered into the
3-4 tax abatement agreement with the municipality or county, an
3-5 increase in the business's payroll of $3 million, specific to
3-6 property located in this state according to records filed by the
3-7 business with the Texas Employment Commission; or
3-8 (B) since an initial comparison year beginning
3-9 on or after January 1, 1996, an increase of at least $4 million in
3-10 the appraised value of the business's property subject to the tax
3-11 abatement agreement with the municipality or county according to
3-12 the appraisal rolls; and
3-13 (3) that person must have furnished the comptroller
3-14 with a copy of the tax abatement agreement entered into by the
3-15 person with the municipality or county.
3-16 (e) Application for the refund is to the comptroller. The
3-17 application must:
3-18 (1) be made on the form prescribed by the comptroller;
3-19 (2) have attached a tax receipt from the assessor and
3-20 collector of taxes for the school district showing full payment of
3-21 school district ad valorem taxes on the property for the tax year
3-22 for which the refund is sought; and
3-23 (3) include sufficient information for the comptroller
3-24 to determine the portion of the ad valorem taxes paid to a school
3-25 district by the person for the applicable tax year on the property
3-26 that the person would not have been required to pay if the school
3-27 district had entered into a tax abatement agreement concerning the
4-1 property that included the same terms, including terms governing
4-2 the portion of the property that is to be exempt from taxation
4-3 under the agreement, as the applicable municipal or county tax
4-4 abatement agreement.
4-5 (f) A refund amount payable under this subchapter does not
4-6 earn interest.
4-7 (g) A person applying for a refund must certify to the
4-8 comptroller that the person is in compliance with each term of the
4-9 tax abatement agreement entered into with the municipality or
4-10 county.
4-11 (h) If the relevant tax abatement agreement has not been
4-12 filed with the comptroller and the Texas Department of Commerce,
4-13 the comptroller may not act on the application until the agreement
4-14 is on file.
4-15 (i) If, after a review or audit, the comptroller determines
4-16 that the person applying for the refund is not in compliance with
4-17 each term of the appropriate tax abatement agreement, the
4-18 comptroller may not act on the refund application until the person
4-19 comes into compliance and shall notify the municipality or county
4-20 of the person's noncompliance.
4-21 (j) The comptroller may grant to a person who is not in
4-22 compliance with a tax abatement agreement a temporary waiver if the
4-23 comptroller determines that the person's noncompliance is the
4-24 result of a natural disaster.
4-25 (k) The comptroller may conduct any audit that the
4-26 comptroller determines necessary for the enforcement or
4-27 administration of this subchapter.
5-1 Sec. 111.302. ISSUANCE OF TAX REFUND; AMOUNT OF REFUND.
5-2 (a) The comptroller shall issue a tax refund to a person for a tax
5-3 year in which the person applying has paid the ad valorem taxes
5-4 imposed by a school district on property of the person described by
5-5 Section 111.301(a).
5-6 (b) Applications for refund must be filed before August 1 of
5-7 the year following the tax year for which the person applying has
5-8 paid ad valorem taxes described by Section 111.301(a). Within 60
5-9 days thereafter, the comptroller shall compute the total amount
5-10 eligible for refund.
5-11 (c) If the total amount of eligible refunds claimed by all
5-12 persons, as determined under Subsection (b), is less than $10
5-13 million, the amount of a tax refund is equal to the ad valorem
5-14 taxes paid to a school district by the person for the applicable
5-15 tax year on the property that the person would not have been
5-16 required to pay if the school district had entered into a tax
5-17 abatement agreement covering the property that included the same
5-18 terms, including terms governing the portion of the property that
5-19 is to be exempt from taxation under the agreement, as the
5-20 applicable municipal or county tax abatement agreement. If the
5-21 total amount of eligible refunds claimed by all persons, as
5-22 determined under Subsection (b), is greater than $10 million, the
5-23 comptroller shall reduce the amount of each refund as necessary to
5-24 allow all claimants to share proportionally the $10 million
5-25 available. The amount by which a refund is reduced under this
5-26 subsection may not be included in a claim for a refund in a
5-27 subsequent year.
6-1 Sec. 111.303. RULES AND FORMS. (a) The comptroller shall
6-2 adopt rules and forms for the administration of this subchapter.
6-3 The rules must identify the state taxes to which this subchapter
6-4 applies.
6-5 (b) The comptroller shall provide without charge one copy of
6-6 the rules and forms to each person applying for a refund under this
6-7 subchapter.
6-8 Sec. 111.304. EVALUATION; ANNUAL REPORT. Not later than
6-9 December 1, 1999, and December 1 of each subsequent year, the
6-10 comptroller shall submit an annual report to the legislature. The
6-11 report:
6-12 (1) must document the applications for refunds filed
6-13 with the comptroller under this subchapter;
6-14 (2) must document the refunds paid by the comptroller
6-15 under this chapter;
6-16 (3) must contain relevant information obtained from
6-17 the Texas Department of Commerce, including information to
6-18 demonstrate the relationship between tax refunds under this
6-19 subchapter and the economy; and
6-20 (4) may include any other relevant information that
6-21 the comptroller determines is applicable to this subchapter or to
6-22 Chapter 312.
6-23 SECTION 2. Subsection (a), Section 312.005, Tax Code, is
6-24 amended to read as follows:
6-25 (a) The Texas Department of Commerce shall maintain a
6-26 central registry of reinvestment zones designated under this
6-27 chapter and of ad valorem tax abatement agreements executed under
7-1 this chapter. Each taxing unit that designates a reinvestment zone
7-2 or executes a tax abatement agreement under this chapter shall
7-3 deliver to the department and to the comptroller before April 1 of
7-4 the year following the year in which the zone is designated or the
7-5 agreement is executed a report providing the following information:
7-6 (1) for a reinvestment zone, a general description of
7-7 the zone, including its size, the types of property located in it,
7-8 <and> its duration, and the guidelines and criteria established for
7-9 the reinvestment zone under Section 312.002, including subsequent
7-10 amendments and modifications of the guidelines or criteria; <and>
7-11 (2) <for> a copy of each tax abatement agreement to
7-12 which the taxing unit is a party; and
7-13 (3) any other information required by the comptroller
7-14 to administer Subchapter F, Chapter 111<, the parties to the
7-15 agreement, a general description of the property and the
7-16 improvements or repairs to be made under the agreement, the portion
7-17 of the property to be exempted, and duration of the agreement>.
7-18 SECTION 3. Subsection (a), Section 312.205, Tax Code, is
7-19 amended to read as follows:
7-20 (a) An agreement made under Section 312.204 must:
7-21 (1) list the kind, number, and location of all
7-22 proposed improvements of the property;
7-23 (2) provide access to and authorize inspection of the
7-24 property by municipal employees to ensure that the improvements or
7-25 repairs are made according to the specifications and conditions of
7-26 the agreement;
7-27 (3) limit the uses of the property consistent with the
8-1 general purpose of encouraging development or redevelopment of the
8-2 zone during the period that property tax exemptions are in effect;
8-3 <and>
8-4 (4) provide for recapturing property tax revenue lost
8-5 as a result of the agreement if the owner of the property fails to
8-6 make the improvements or repairs as provided by the agreement;
8-7 (5) contain each term agreed to by the owner of the
8-8 property;
8-9 (6) require the owner of the property to certify
8-10 annually to the governing body of each taxing unit that the owner
8-11 is in compliance with each applicable term of the agreement; and
8-12 (7) provide that the governing body of the
8-13 municipality may cancel or modify the agreement if the property
8-14 owner fails to comply with the agreement.
8-15 SECTION 4. Section 312.006, Tax Code, is amended to read as
8-16 follows:
8-17 Sec. 312.006. EXPIRATION DATE. If not continued in effect,
8-18 this chapter expires September 1, 2001 <1995>.
8-19 SECTION 5. Chapter 312, Tax Code, is amended by adding
8-20 Subchapter D to read as follows:
8-21 SUBCHAPTER D. COUNTY DEVELOPMENT DISTRICTS
8-22 Sec. 312.601. SHORT TITLE. This subchapter may be cited as
8-23 the County Development District Act.
8-24 Sec. 312.602. LEGISLATIVE INTENT. The intent of the
8-25 legislature is to further the public purpose of developing and
8-26 diversifying the economy of this state by providing incentives for
8-27 the location and development of projects in certain counties to
9-1 attract visitors and tourists.
9-2 Sec. 312.603. LEGISLATIVE FINDINGS. The legislature finds
9-3 that:
9-4 (1) small and medium-sized counties in Texas are in
9-5 need of incentives for the development of public improvements to
9-6 attract visitors and tourists to such counties, and that such
9-7 counties are at a disadvantage in competing with counties in other
9-8 states for the location and development of projects that attract
9-9 visitors by virtue of the availability and prevalent use in other
9-10 states of financial incentives;
9-11 (2) the means and measures authorized by this
9-12 subchapter are in the public interest and serve a public purpose of
9-13 the state in promoting the economic welfare of the citizens of the
9-14 state by providing incentives for the location and development in
9-15 certain Texas counties of projects that attract visitors and
9-16 tourists and that result in employment and economic activity; and
9-17 (3) the creation of development districts is essential
9-18 to the accomplishment of Section 52-a, Article III, Texas
9-19 Constitution, and to the accomplishment of the other public
9-20 purposes stated in this subchapter and further serves the purpose
9-21 of Section 59, Article XVI, and Section 52, Article III, Texas
9-22 Constitution.
9-23 Sec. 312.604. DEFINITIONS. In this subchapter:
9-24 (1) "District" means a county development district
9-25 created under this subchapter.
9-26 (2) "Board" means the board of directors of the
9-27 district.
10-1 (3) "Director" means a member of the board.
10-2 (4) "Commissioners court" means the governing body of
10-3 the county in which the district is located.
10-4 (5) "County" means the county in which the district is
10-5 located.
10-6 (6) "Project" has the same meaning as that term is
10-7 defined to mean in Section 4B(a)(2), Development Corporation Act of
10-8 1979 (Article 5190.6, Vernon's Texas Civil Statutes).
10-9 (7) "Cost" has the same meaning as that term is
10-10 defined to mean in Section 2(4), Development Corporation Act of
10-11 1979 (Article 5190.6, Vernon's Texas Civil Statutes).
10-12 (8) "Bonds" means bonds, notes, and other obligations.
10-13 Sec. 312.605. COUNTIES AUTHORIZED TO CREATE DISTRICTS. The
10-14 commissioners court of a county with a population of not more than
10-15 400,000 according to the most recent federal decennial census may,
10-16 on petition of the owners of land in a proposed district, commence
10-17 the creation of a county development district. The creation of the
10-18 district is subject to a confirmation election held as provided by
10-19 this subchapter.
10-20 Sec. 312.6055. PETITION OF LANDOWNERS. To create a
10-21 district, a petition requesting creation shall be filed with the
10-22 county commissioners court of the county in which all of the land
10-23 in the proposed district is located. The petition shall be
10-24 accompanied by a sworn statement indicating consent to creation
10-25 signed by the holders of fee simple title of all of the land within
10-26 the proposed district.
10-27 Sec. 312.606. CONTENTS OF PETITION. The petition shall:
11-1 (1) describe the boundaries of the proposed district
11-2 by metes and bounds or by lot and block number, if there is a
11-3 recorded map or plat and survey of the area;
11-4 (2) include a name of the district which shall include
11-5 the name of the county followed by the words "Development District
11-6 No. ";
11-7 (3) include the names of five persons who are willing
11-8 and qualified to serve as temporary directors of the proposed
11-9 district;
11-10 (4) state the general nature of the work proposed to
11-11 be done and the cost of the project as then estimated by the
11-12 petitioners; and
11-13 (5) state the necessity and feasibility of the
11-14 proposed district and whether the district will serve the public
11-15 purpose of attracting visitors and tourists to the county.
11-16 Sec. 312.607. HEARING ON PETITION. Not later than the 60th
11-17 day after the date a petition is received, the commissioners court
11-18 shall fix a date, time, and place at which the petition shall be
11-19 heard and shall issue notice of the date, time, place, and subject
11-20 matter of the hearing. The notice shall inform all persons of
11-21 their right to appear and present evidence and testify for or
11-22 against the creation of the district.
11-23 Sec. 312.608. NOTICE OF HEARING. At least 30 days before
11-24 the date set for the hearing, notice of the hearing shall be mailed
11-25 to the developer who signed the petition and the landowners of all
11-26 the land in the district and shall be published in a newspaper with
11-27 general circulation in the county in which the proposed district is
12-1 located.
12-2 Sec. 312.609. HEARING. At the hearing, the commissioners
12-3 court shall examine the petition to ascertain its sufficiency, and
12-4 any person interested may appear before the commission to offer
12-5 testimony on the sufficiency of the petition and whether or not the
12-6 district should be created.
12-7 Sec. 312.610. GRANTING OR REFUSING PETITION. (a) After the
12-8 hearing, if it is found that the petition conforms to the
12-9 requirements of Section 312.6055 and that the creation of the
12-10 district and the proposed project is feasible and necessary and
12-11 would serve the public purpose of attracting visitors and tourists
12-12 to the county, the commissioners court shall so find and enter an
12-13 order creating the district.
12-14 (b) If the commissioners court finds that the petition does
12-15 not conform to the requirements of Section 312.6055 or that the
12-16 creation of the district and the proposed project is not feasible
12-17 and necessary and would not serve the purpose of attracting
12-18 visitors and tourists to the county, the commissioners court shall
12-19 so find by its order and deny the petition.
12-20 Sec. 312.611. TEMPORARY DIRECTORS; VACANCY IN OFFICE. If
12-21 the commissioners court grants the petition, it shall appoint to
12-22 serve as temporary directors of the district five persons who are
12-23 qualified under this subchapter to serve as directors. A vacancy
12-24 in the office of temporary director shall be filled by appointment
12-25 by the commissioners court.
12-26 Sec. 312.612. QUALIFICATION OF TEMPORARY DIRECTORS. Each
12-27 temporary director shall execute a bond in accordance with the
13-1 provisions of Section 312.626 and shall take an oath of office, and
13-2 the board shall meet and organize.
13-3 Sec. 312.613. CONFIRMATION AND SALES AND USE TAX ELECTION.
13-4 The temporary board of directors shall conduct an election within
13-5 the boundaries of the district to confirm the creation of the
13-6 district and authorize a sales and use tax in conformity with this
13-7 subchapter.
13-8 Sec. 312.614. ELECTION ORDER. An order calling an election
13-9 under Section 312.613 must state:
13-10 (1) the nature of the election, including the
13-11 proposition that is to appear on the ballot;
13-12 (2) the date of the election;
13-13 (3) the hours during which the polls will be open;
13-14 (4) the location of the polling places; and
13-15 (5) the proposed rate of the sales and use tax for the
13-16 district.
13-17 Sec. 312.615. NOTICE. The temporary directors shall give
13-18 notice of the confirmation and sales and use tax election by
13-19 publishing a substantial copy of the election order in a newspaper
13-20 with general circulation in the county in which the proposed
13-21 district is located once a week for two consecutive weeks. The
13-22 first publication must appear at least 14 days before the date set
13-23 for the election.
13-24 Sec. 312.616. CONDUCT OF ELECTION. (a) The election shall
13-25 be held in accordance with the provisions of the Election Code, to
13-26 the extent not inconsistent with this subchapter.
13-27 (b) The ballot shall be printed to permit voting for or
14-1 against the proposition: "The creation of ____________ County
14-2 Development District No. _____ and the adoption of a proposed local
14-3 sales and use tax rate of _____ (the rate specified in the election
14-4 order) to be used for the promotion and development of tourism."
14-5 Sec. 312.617. RESULTS OF ELECTION. (a) After the
14-6 confirmation and sales and use tax election, the presiding judge
14-7 shall make returns of the result to the temporary board of
14-8 directors. The temporary board of directors shall canvass the
14-9 returns and declare the results.
14-10 (b) If a majority of the votes cast in the election favor
14-11 the creation of the district and the adoption of the sales and use
14-12 tax, then the temporary board shall declare that the district is
14-13 created and shall declare the amount of the local sales and use tax
14-14 adopted and enter the result in its minutes. If a majority of the
14-15 votes cast in the election are against the creation of the district
14-16 and the adoption of the sales and use tax, the temporary board
14-17 shall declare that the proposition to create the district was
14-18 defeated and enter the result in its minutes.
14-19 (c) A certified copy of the minute order declaring that the
14-20 district is created and the local sales and use tax adopted and
14-21 including the rate of the sales and use tax, or declaring that the
14-22 proposition to create the district was defeated, shall be sent to
14-23 the commissioners court, the comptroller, and any taxing entity by
14-24 certified or registered mail. Such order shall also show the date
14-25 of the election, the proposition on which the vote was held, the
14-26 total number of votes cast for or against the proposition, and the
14-27 number of votes by which the proposition was approved.
15-1 Sec. 312.618. BOARD OF DIRECTORS. (a) A district is
15-2 governed by a board of five directors appointed by the county
15-3 commissioners of the county in which the district is located. The
15-4 temporary directors appointed under Section 312.611 shall become
15-5 permanent directors of the district, provided that the creation of
15-6 the district is confirmed at the confirmation election.
15-7 (b) Directors serve staggered four-year terms that expire
15-8 September 1. Following confirmation of the district at the
15-9 election, the temporary directors shall draw lots to determine:
15-10 (1) the two directors to serve terms that expire on
15-11 September 1 of the second year following creation of the district;
15-12 and
15-13 (2) the three directors to serve terms that expire on
15-14 September 1 of the fourth year following creation of the district.
15-15 Sec. 312.619. QUALIFICATIONS FOR DIRECTORS. To be qualified
15-16 to serve as a director, a person shall be at least 21 years of age,
15-17 a resident citizen of the State of Texas, and a qualified voter
15-18 within the county in which the district is located.
15-19 Sec. 312.620. PERSONS DISQUALIFIED TO SERVE. Section
15-20 50.026, Water Code, relating to disqualification of directors,
15-21 shall apply to directors of districts created under this
15-22 subchapter.
15-23 Sec. 312.621. VACANCIES ON THE BOARD. A vacancy in the
15-24 office of director shall be filled by appointment of the
15-25 commissioners court.
15-26 Sec. 312.622. REMOVAL OF DIRECTOR. The governing body of
15-27 the commissioners court, after notice and hearing, may remove a
16-1 director for misconduct or failure to carry out the director's
16-2 duties on petition by a majority of the remaining directors.
16-3 Sec. 312.623. ORGANIZATION OF BOARD. After each appointment
16-4 of directors by the commissioners court, and after the directors
16-5 have qualified by taking the proper oath, they shall organize by
16-6 electing a president, a vice president, a secretary, and any other
16-7 officers as in the judgment of the board are considered necessary.
16-8 Sec. 312.624. QUORUM; OFFICERS' DUTIES; MANAGEMENT OF
16-9 DISTRICT. Sections 54.107, 54.108, 54.111, and 54.118, Water Code,
16-10 relating to quorum, officers' duties, and management of the
16-11 district, shall govern the board of directors of a district created
16-12 under this subchapter.
16-13 Sec. 312.625. MEETINGS AND NOTICE. (a) The board shall
16-14 designate and establish a district office in the county.
16-15 (b) The board may establish regular meetings to conduct
16-16 district business and may hold special meetings at other times as
16-17 the business of the district requires.
16-18 (c) Notice of the time, place, and purpose of any meeting of
16-19 the board shall be given by posting the notice at a place
16-20 convenient to the public within the district. A copy of the notice
16-21 shall be furnished to the clerk or clerks of the county in which
16-22 the district is located, who shall post it on a bulletin board in
16-23 the county courthouse used for such purpose.
16-24 (d) Except as herein provided the provisions of the open
16-25 meetings law, Chapter 551, Government Code, shall be applicable to
16-26 meetings of the board of directors. Any interested person may
16-27 attend any meeting of the board.
17-1 Sec. 312.626. DIRECTOR'S COMPENSATION; BOND AND OATH OF
17-2 OFFICE. A director is not entitled to receive compensation for
17-3 service on the board. Sections 375.067, 375.069, and 375.070,
17-4 Local Government Code, apply to directors of a district created
17-5 under this subchapter.
17-6 Sec. 312.627. GOVERNMENTAL AGENCY; SUITS. (a) A district,
17-7 when created and confirmed, may, through its directors, sue and be
17-8 sued in any and all courts of this state in the name of the
17-9 district. Service of process in any suit may be had by serving any
17-10 two directors.
17-11 (b) A district is a governmental agency, a body politic and
17-12 corporate, and a political subdivision of the state. Section
17-13 375.004, Local Government Code, applies to a district created under
17-14 this subchapter.
17-15 Sec. 312.628. POWERS. (a) A district shall have the power
17-16 to acquire and dispose of projects and shall have all of the other
17-17 powers, authority, rights, and duties which will permit
17-18 accomplishment of the purposes for which the district was created.
17-19 (b) The district shall have the power to provide for general
17-20 promotion and tourist advertising of the district and its vicinity
17-21 and to conduct a marketing program to attract visitors, any of
17-22 which may be conducted by the district pursuant to contracts for
17-23 professional services with persons or organizations selected by the
17-24 district.
17-25 (c) The district shall have the powers of a municipal
17-26 management district created under Chapter 375, Local Government
17-27 Code, to the extent not inconsistent with this subchapter.
18-1 Sec. 312.629. COMPETITIVE BIDDING; CONTRACT AWARD. Sections
18-2 375.221 and 375.223, Local Government Code, apply to a district
18-3 created under this subchapter. Notwithstanding any other provision
18-4 of this subchapter to the contrary, any contract between the
18-5 district and a governmental entity or nonprofit corporation created
18-6 under the Development Corporation Act of 1979 (Article 5190.6,
18-7 Vernon's Texas Civil Statutes) shall not be subject to the
18-8 competitive bidding requirements of this subchapter.
18-9 Sec. 312.630. EMINENT DOMAIN. A district not located within
18-10 the corporate limits of a municipality may exercise the power of
18-11 eminent domain to acquire land or interests in land within the
18-12 district deemed necessary by the board of directors of the district
18-13 for the purpose of providing water and sewer services to an
18-14 authorized project. The right of eminent domain shall be exercised
18-15 in the manner provided by Chapter 21, Property Code.
18-16 Sec. 312.631. EXPENDITURES. A district's money may be
18-17 disbursed only by check, draft, order, or other instrument which
18-18 shall be signed by at least three directors. The general manager,
18-19 treasurer, or other employee of the district when authorized by
18-20 resolution of the board may sign checks, drafts, orders, or other
18-21 instruments on any district operation account and these need not be
18-22 signed by anyone else.
18-23 Sec. 312.632. PURPOSES FOR BORROWING MONEY. The district
18-24 may borrow money for any corporate purpose or combination of
18-25 corporate purposes.
18-26 Sec. 312.633. REPAYMENT OF ORGANIZATIONAL EXPENSES. The
18-27 district's directors are authorized to pay all costs and expenses
19-1 necessarily incurred in the creation and organization of a
19-2 district, the cost of investigation and making plans, the cost of
19-3 the engineer's report, project designer fees, legal fees, and other
19-4 incidental expenses and to reimburse any person for money advanced
19-5 for these purposes. These payments may be made from money obtained
19-6 from the issuance of notes or the sale of bonds first issued by the
19-7 district or out of other revenues of the district.
19-8 Sec. 312.634. ISSUANCE OF BONDS. The district may issue
19-9 bonds for the purpose of defraying all or part of the cost of any
19-10 project as provided in this subchapter. Sections 375.201 through
19-11 375.208, Local Government Code, shall apply to a district created
19-12 under this subchapter to the extent not inconsistent with this
19-13 subchapter.
19-14 Sec. 312.635. MANNER OF REPAYMENT OF BONDS. The board may
19-15 provide for the payment of principal of and interest and redemption
19-16 price on bonds from taxes; by pledging all or any part of the
19-17 designated revenues, license fees, or other compensation from a
19-18 project or any part thereof, including revenues and receipts
19-19 derived by the district from the lease or sale of the project or by
19-20 pledging all or any part of any grant, donation, revenues, or
19-21 income received or to be received from any public or private
19-22 source; or from a combination of such sources.
19-23 Sec. 312.636. USE OF BOND PROCEEDS. The district may use
19-24 bond proceeds to pay interest on the bonds during and after the
19-25 period of the acquisition or construction of a project, to pay
19-26 administrative and operating expenses, to create a reserve fund for
19-27 the payment of principal and interest on the bonds, and to pay all
20-1 expenses incurred and to be incurred in the issuance, sale, and
20-2 delivery of the bonds.
20-3 Sec. 312.637. SALES AND USE TAX. (a) A district may levy a
20-4 sales and use tax for the benefit of the district if authorized by
20-5 a majority of the qualified voters of the district voting at an
20-6 election called for that purpose. The sales and use tax, if
20-7 adopted, does not count toward the limitation imposed by Chapter
20-8 323 on any sales and use tax that has been levied by the county.
20-9 (b) If a district adopts the tax, there is imposed a tax on
20-10 the receipts from the sale at retail of taxable items within the
20-11 district at a rate of up to one-half of one percent. For purposes
20-12 of this section, the term "taxable items" includes all items
20-13 subject to any sales and use tax that is imposed by the county in
20-14 which the district is located if the county has imposed a sales and
20-15 use tax. There is also imposed an excise tax on the use, storage,
20-16 or other consumption within the district of taxable items
20-17 purchased, leased, or rented from a retailer during the period that
20-18 the tax is effective within the district. The rate of the excise
20-19 tax is the same as the rate of the sales tax portion of the tax
20-20 applied to the sales price of the taxable items and is included in
20-21 the sales tax.
20-22 (c) Chapter 323, to the extent not inconsistent with this
20-23 subchapter, governs the imposition, computation, administration,
20-24 and governance of the tax under this section, except that Sections
20-25 323.101(b) and (e), and Sections 323.209, 323.401 through 323.406,
20-26 and 323.505 do not apply. Chapter 323 does not apply to the use
20-27 and allocation of revenues under this subchapter. In applying the
21-1 procedures under Chapter 323, the district's name shall be
21-2 substituted for "the county" and "board of directors" is
21-3 substituted for "commissioners court."
21-4 (d) The permissible rates for a local sales and use tax
21-5 levied under this subchapter are one-fourth of one percent,
21-6 three-eighths of one percent, and one-half of one percent.
21-7 (e) The board by order may decrease or abolish the local
21-8 sales and use tax rate or may call an election to increase,
21-9 decrease, or abolish the local sales and use tax rate.
21-10 (f) At the election, the ballots shall be prepared to permit
21-11 voting for or against the proposition: "The increase (decrease) in
21-12 the local sales and use tax rate of (name of district) to
21-13 (percentage) to be used for the promotion and development of
21-14 tourism" or "The abolition of the district sales and use tax used
21-15 for the promotion and development of tourism." The increase or
21-16 decrease in the tax rate is effective if it is approved by a
21-17 majority of the votes cast. In calling and holding the election,
21-18 the board shall use the procedure for the confirmation and tax
21-19 election set forth in this subchapter.
21-20 (g) Taxes collected under this section may be used only for
21-21 the purposes for which the district was created, and the district
21-22 may pledge the revenue derived from the taxes imposed under this
21-23 section to the payment of bonds issued by the district.
21-24 (h) A county development district may adopt a tax under this
21-25 section only if as a result of adoption of the tax the combined
21-26 rate of all local sales and use taxes imposed by political
21-27 subdivisions having territory in the district will not exceed two
22-1 percent. If, as a result of the levy or increase in a sales and
22-2 use tax by a municipality in which there is located a district with
22-3 an existing sales and use tax or as a result of the annexation by a
22-4 municipality of the territory in a district with an existing sales
22-5 and use tax, the overlapping local sales and use taxes in the area
22-6 within the district will exceed two percent, then the district's
22-7 sales and use tax rate shall automatically be reduced to a rate
22-8 that when added to the combined rate of local sales and use taxes
22-9 will equal two percent. If a district's tax rate is so reduced,
22-10 the municipality shall make payments to the district equal to the
22-11 amounts that would have been collected by the district had the
22-12 municipality not levied or increased its sales and use tax or
22-13 annexed the area within the district, less amounts that the
22-14 district collects following the city's levy of or increase in its
22-15 sales and use tax or annexation of the area within the district.
22-16 Such payment shall be made by the municipality to the district
22-17 within 10 days of receipt of the money from the comptroller's
22-18 office and shall continue only for so long as any bonds of the
22-19 district are outstanding.
22-20 Sec. 312.638. ADDING AND EXCLUDING LAND FROM THE DISTRICT.
22-21 (a) Before the board issues bonds, the board may, on its own
22-22 motion or on request of a landowner in the district, petition the
22-23 county commissioners for the addition of land to or exclusion of
22-24 land from the district.
22-25 (b) If the commissioners court unanimously determines from
22-26 the evidence that the best interests of the persons and property in
22-27 the district will be served by adding or excluding land, the
23-1 commissioners court shall enter in its records the appropriate
23-2 findings and order adding or excluding land.
23-3 Sec. 312.639. DISSOLUTION OF DISTRICT. (a) A district may
23-4 be dissolved only as provided by this section.
23-5 (b) The board of directors may petition the commissioners
23-6 court to dissolve the district if a majority of the board finds at
23-7 any time:
23-8 (1) before the authorization of bonds or the final
23-9 lending of its credit, that the proposed undertaking is
23-10 impracticable or cannot be successfully and beneficially
23-11 accomplished; or
23-12 (2) that all bonds of the district or other debts of
23-13 the district have been paid and the purposes of the district have
23-14 been accomplished.
23-15 (c) On receipt of a petition from the board of dissolution
23-16 of the district, the county commissioners shall hold a hearing as
23-17 provided by Section 312.607.
23-18 (d) If the commissioners court unanimously determines from
23-19 the evidence that the best interests of the county and the owners
23-20 of property and interests in property within the district will be
23-21 served by dissolving the district, the commissioners court shall
23-22 enter in its records the appropriate findings and order dissolving
23-23 the district. Otherwise the commissioners court shall enter its
23-24 order providing that the district has not been dissolved. On
23-25 dissolution of the district, funds and property of the district, if
23-26 any, shall be transferred to the commissioners court.
23-27 Sec. 312.640. DISSOLUTION OF DISTRICT ON AGREEMENT WITH
24-1 MUNICIPALITY. A district may be dissolved by agreement between the
24-2 governing body of a municipality and the board of directors of a
24-3 district if all of the territory within the district is located
24-4 within or annexed by the municipality. The agreement shall require
24-5 the municipality to acquire all of the funds, property, and other
24-6 assets of the district and assume all contracts, debts, bonds, and
24-7 other obligations of the district, and the municipality shall be
24-8 bound in the same manner and to the same extent that the district
24-9 was bound with respect to such contracts, debts, bonds, and other
24-10 obligations. On dissolution of the district, the taxes levied by
24-11 the district are abolished.
24-12 SECTION 6. Chapter 352, Tax Code, is amended by adding
24-13 Section 352.107 to read as follows:
24-14 Sec. 352.107. HOTEL TAX AUTHORIZED FOR COUNTY DEVELOPMENT
24-15 DISTRICTS. Notwithstanding any other provision of this chapter to
24-16 the contrary, a commissioners court of a county with a population
24-17 of less than 400,000 may impose a hotel occupancy tax not to exceed
24-18 seven percent on a person who pays for the use or possession or for
24-19 the right to the use or possession of a room in a hotel ordinarily
24-20 used for sleeping that is located within the boundaries of the
24-21 county development district created under Subchapter D, Chapter
24-22 312, and that is not located within the corporate limits of a
24-23 municipality, subject to the limitations set forth in Sections
24-24 352.002(b) and (c). Taxes collected by a county under this section
24-25 shall be remitted to the county development district not later than
24-26 the 10th day after the date the county receives such funds and may
24-27 be used by the district for the purposes for which sales and use
25-1 tax proceeds may be used by the district.
25-2 SECTION 7. (a) Except as provided by Subsection (b) of this
25-3 section, this Act takes effect September 1, 1995. The change in
25-4 law made by Section 1 of this Act applies only to an abatement
25-5 agreement entered into after January 1, 1996, and a tax that is
25-6 paid on or after September 1, 1996.
25-7 (b) Section 4 of this Act takes effect August 31, 1995.
25-8 SECTION 8. The importance of this legislation and the
25-9 crowded condition of the calendars in both houses create an
25-10 emergency and an imperative public necessity that the
25-11 constitutional rule requiring bills to be read on three several
25-12 days in each house be suspended, and this rule is hereby suspended.