By West S.B. No. 1710
74R6358 PAM-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to authorizing a municipal tax to provide affordable
1-3 housing in populous municipalities.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. The purpose of this Act is to authorize populous
1-6 municipalities to provide affordable, decent, safe, and sanitary
1-7 housing for very low-income families.
1-8 SECTION 2. Title 3, Tax Code, is amended by adding Subtitle
1-9 E to read as follows:
1-10 SUBTITLE E. LOCAL APARTMENT OCCUPANCY TAXES
1-11 CHAPTER 361. MUNICIPAL APARTMENT OCCUPANCY TAXES
1-12 SUBCHAPTER A. GENERAL PROVISIONS
1-13 Sec. 361.001. DEFINITIONS. In this subchapter:
1-14 (1) "Apartment complex" means five or more dwelling
1-15 units located on a lot.
1-16 (2) "Dwelling unit" means one or more rooms that:
1-17 (A) are occupied by a family for one or more
1-18 weeks in exchange for consideration; and
1-19 (B) contain living, sanitary, and sleeping
1-20 facilities.
1-21 (3) "Family" means one or more individuals who live
1-22 together as a single housekeeping unit.
1-23 (4) "Lot" means:
1-24 (A) a platted parcel of land; or
2-1 (B) an unplatted parcel of land that is adjacent
2-2 to a public street and complies with all zoning ordinances relating
2-3 to:
2-4 (i) minimum dimensions for a parcel; and
2-5 (ii) setback and lot coverage if the
2-6 parcel is improved.
2-7 (5) "Very low-income family" has the meaning assigned
2-8 by 42 U.S.C. Section 1437a(b)(2).
2-9 Sec. 361.002. APPLICABILITY. This subchapter applies only
2-10 to a municipality with a population of one million or more that:
2-11 (1) is located in a county with a population of 1.8
2-12 million or more; and
2-13 (2) has adopted a council-manager form of government.
2-14 (Sections 361.003-361.100 reserved for expansion
2-15 SUBCHAPTER B. IMPOSITION AND COLLECTION OF TAX
2-16 Sec. 361.101. TAX AUTHORIZED. The governing body of a
2-17 municipality by ordinance may impose a tax on an owner of an
2-18 apartment complex for each dwelling unit in the complex that is
2-19 occupied for 180 days or more in a calendar year.
2-20 Sec. 361.102. TAX RATE. The tax authorized by this chapter
2-21 may be imposed at any rate not to exceed $5 each month for each
2-22 dwelling unit.
2-23 Sec. 361.103. TAX COLLECTION. A person owning, operating,
2-24 managing, or controlling an apartment complex shall collect for the
2-25 municipality the tax that is imposed under this chapter.
2-26 Sec. 361.104. INTEREST AND PENALTIES. (a) A tax imposed
2-27 under this chapter that is not paid to the municipality when it is
3-1 due draws interest as provided by Section 111.060.
3-2 (b) If the person who is required to pay to the municipality
3-3 the tax imposed under this chapter fails to file a report or does
3-4 not pay the tax when it is due, the person shall forfeit to the
3-5 municipality a penalty of five percent of the amount of tax due.
3-6 (c) If the person who is required to pay the tax to the
3-7 municipality does not pay the tax within 30 days after it is due,
3-8 the person shall forfeit to the municipality a penalty of an
3-9 additional five percent of the amount of tax due.
3-10 (d) The minimum penalty under this section is $1.
3-11 Sec. 361.105. ENFORCEMENT. (a) The municipal attorney or
3-12 other attorney acting for the municipality may bring suit against a
3-13 person who is required to collect the tax imposed under this
3-14 chapter and pay the collections over to the municipality and who
3-15 has failed to file a tax report or pay the tax when due to collect
3-16 the tax not paid or to enjoin the person from operating an
3-17 apartment complex in a municipality until the tax is paid or the
3-18 report filed, as applicable, as provided by the court's order. In
3-19 addition to the amount of any tax owed under this chapter, the
3-20 person is liable to the municipality for the municipality's
3-21 reasonable attorney's fees and a penalty equal to 15 percent of the
3-22 total amount of the tax owed.
3-23 (b) Section 16.061, Civil Practice and Remedies Code,
3-24 applies to the collection of a tax under this chapter. A
3-25 limitation period provided by Title 2 relating to the time allowed
3-26 to assess taxes and bring a suit to collect taxes does not apply to
3-27 a tax imposed under this chapter or a suit brought under this
4-1 section.
4-2 (c) A municipality by ordinance may authorize misdemeanor
4-3 punishment for a violation of an ordinance adopted under this
4-4 chapter.
4-5 (d) The remedies provided by this section are in addition to
4-6 other available remedies.
4-7 Sec. 361.106. COLLECTION PROCEDURES ON PURCHASE OF APARTMENT
4-8 COMPLEX. (a) If a person who is liable for the payment of a tax
4-9 under this chapter is the owner of an apartment complex and sells
4-10 the apartment complex, the successor to the seller or the seller's
4-11 assignee shall withhold an amount of the purchase price sufficient
4-12 to pay the amount due until the seller provides a receipt by a
4-13 person designated by the municipality to provide the receipt
4-14 showing that the amount has been paid or a certificate showing that
4-15 no tax is due.
4-16 (b) The purchaser of an apartment complex who fails to
4-17 withhold an amount of the purchase price as required by this
4-18 section is liable for the amount required to be withheld to the
4-19 extent of the value of the purchase price.
4-20 (c) The purchaser of an apartment complex may request that
4-21 the person designated by the municipality to provide a receipt
4-22 under Subsection (a) issue a certificate stating that no tax is due
4-23 or issue a statement of the amount required to be paid before a
4-24 certificate may be issued. The person designated by the
4-25 municipality shall issue the certificate or statement not later
4-26 than the 60th day after the date that the person receives the
4-27 request.
5-1 (d) If the person designated by the municipality to provide
5-2 a receipt under Subsection (a) fails to issue the certificate or
5-3 statement within the period provided by Subsection (c), the
5-4 purchaser is released from the obligation to withhold the purchase
5-5 price or pay the amount due.
5-6 Sec. 361.107. REIMBURSEMENT FOR TAX COLLECTION EXPENSES.
5-7 (a) A municipality may permit a person who is required to collect
5-8 and pay over to the municipality the tax authorized by this chapter
5-9 not more than one percent of the amount collected and required to
5-10 be reported as reimbursement to the person for the costs in
5-11 collecting the tax.
5-12 (b) The municipality may provide that the reimbursement
5-13 provided by this section be forfeited because of a failure to pay
5-14 the tax or to file a report as required by the municipality.
5-15 Sec. 361.108. EXEMPTIONS. (a) This chapter does not impose
5-16 a tax on a corporation or association that is organized and
5-17 operated exclusively for a religious, charitable, or educational
5-18 purpose if no part of the net earnings of the corporation or
5-19 association inure to the benefit of a private shareholder or
5-20 individual.
5-21 (b) This chapter does not impose a tax on the United States,
5-22 this state, or an agency, institution, board, or commission of this
5-23 state other than an institution of higher education. In this
5-24 subsection, "institution of higher education" has the meaning
5-25 assigned by Section 61.003, Education Code.
5-26 (c) A municipality may exempt from taxation an apartment
5-27 complex owner who provides housing for very low-income families
6-1 under a local, state, or federal housing program.
6-2 Sec. 361.109. PREEXISTING CONTRACTS. If a municipality
6-3 increases the rate of the tax authorized by this chapter, the
6-4 increased tax rate does not apply to the tax imposed on the use or
6-5 possession of a dwelling unit under a contract executed before the
6-6 rate increase that provides for the payment of the tax at the rate
6-7 in effect when the contract was executed, unless the contract is
6-8 subject to change or modification by reason of the tax rate
6-9 increase. The tax rate applicable to the use or possession of a
6-10 dwelling unit under the contract is the rate in effect when the
6-11 contract was executed.
6-12 (Sections 361.110-361.200 reserved for expansion
6-13 SUBCHAPTER C. REPORTS AND PAYMENTS
6-14 Sec. 361.201. REPORT AND PAYMENT. (a) A person required to
6-15 collect the tax imposed under this chapter shall pay the
6-16 municipality the tax collected during the preceding reporting
6-17 period and at the same time shall file with the municipality a
6-18 report stating:
6-19 (1) the total amount of the payments made for dwelling
6-20 units at the person's apartment complex during the preceding
6-21 reporting period;
6-22 (2) the amount of the tax collected by the person
6-23 during the preceding reporting period; and
6-24 (3) other information that the municipality requires
6-25 to be in the report.
6-26 (b) Each calendar year is a reporting period and the taxes
6-27 imposed and collected under this chapter are due and payable to the
7-1 municipality on or before the 20th day of January following the end
7-2 of each calendar year.
7-3 Sec. 361.202. ACCESS TO BOOKS AND RECORDS. After the
7-4 municipality gives reasonable notice to a person that the
7-5 municipality intends to inspect the books or records of the person,
7-6 the municipality has access to the person's books or records
7-7 necessary for the municipality to determine the correctness of a
7-8 report filed under this chapter or the amount of taxes due under
7-9 this chapter.
7-10 (Sections 361.203-361.300 reserved for expansion
7-11 SUBCHAPTER D. USE AND ALLOCATION OF REVENUE
7-12 Sec. 361.301. USE OF TAX REVENUE. (a) Revenue from the tax
7-13 imposed under this chapter may be used only to increase housing
7-14 opportunities for very low-income families.
7-15 (b) The municipality shall maintain complete and accurate
7-16 financial records of each expenditure of revenue from the tax
7-17 imposed under this chapter.
7-18 Sec. 361.302. PLEDGE FOR BONDS. A municipality may pledge
7-19 the revenue derived from the tax imposed under this chapter for the
7-20 payment of bonds that are issued under Section 3, Chapter 63, Acts
7-21 of the 59th Legislature, Regular Session, 1965 (Article 1269j-4.1,
7-22 Vernon's Texas Civil Statutes), for the purpose provided by Section
7-23 361.301.
7-24 SECTION 3. The importance of this legislation and the
7-25 crowded condition of the calendars in both houses create an
7-26 emergency and an imperative public necessity that the
7-27 constitutional rule requiring bills to be read on three several
8-1 days in each house be suspended, and this rule is hereby suspended,
8-2 and that this Act take effect and be in force from and after its
8-3 passage, and it is so enacted.