Floor Packet Page No. 288
Amend CSHB 4 as follows:
(1) On page 248, line 17, through page 254, line 10, strike
Section 4.41 of the bill and substitute a new Section 4.41 to read
as follows:
SECTION 4.41. Subchapter C, Chapter 321, Tax Code, is
amended by adding Sections 321.211 and 321.2111 to read as follows:
Sec. 321.211. USE OF EXPANDED TAX BASE REVENUE: GENERAL
PURPOSE TAX. (a) Except as otherwise provided by this section, a
municipality that has adopted the tax authorized by Section
321.101(a) shall use revenue from the expanded tax base to reduce
municipal property taxes.
(b) The governing body of a municipality that has adopted
the tax authorized by Section 321.101(a) may call and hold an
election on November 4, 1997, on the question of using revenue from
the expanded tax base collected under that provision for a purpose
other than or in addition to reducing municipal property taxes.
(c) The order calling the election under this section must
allow the voters of the municipality to vote on whether the
expanded tax base revenue is required to be used to:
(1) reduce municipal property taxes;
(2) provide additional revenue for the municipality
that can be used for any general purpose of the municipality in
accordance with Section 321.506;
(3) provide funding for one or more specific projects
or types of projects; or
(4) provide funding for a combination of the purposes
described by this subsection.
(d) The ballot at the election held under this section shall
be printed to permit voting in separate propositions on the
purposes described by Subsection (c). If the governing body
authorizes a vote on using the revenue for a combination of
purposes, the ballot at the election must specify an amount or
percentage of the amount of revenue that shall be used for each
purpose. Regardless of the number of propositions on the ballot, a
voter may be allowed to vote in favor of only one proposition. A
voter may not be allowed to vote against any proposition.
(e) If the municipality holds an election under this
section, the municipality may use the revenue from the expanded tax
base only for the purpose or combination of purposes expressed in
the proposition that receives a majority of the votes cast in the
election. If no proposition receives a majority of the votes cast
in the election, the governing body shall call another election to
vote on the two propositions that received the highest and
second-highest number of votes in the election or that tie for the
highest number of votes. If more than two propositions tie for the
highest number of votes in the election or two or more
propositions tie for the second-highest number of votes, the
governing body shall draw lots to determine which two propositions
are to be voted on in the subsequent election.
(f) Not later than the fifth day after the date the final
canvass of the original election is completed, the governing body
shall order the subsequent election under Subsection (e). The
subsequent election shall be held not earlier than the 20th or
later than the 30th day after the date the final canvass of the
original election is completed. A subsequent election, however,
may be held after the 30th but not later than the 45th day after
the date the final canvass of the original election is completed if
the later date is necessary to:
(1) permit a joint election to be held with another
political subdivision in accordance with Chapter 271, Election
Code; or
(2) avoid holding the election on:
(A) a legal state or national holiday; or
(B) a weekend day within three days of a legal
state or national holiday.
(g) If the municipality holds a subsequent election, the
municipality may use the revenue from the expanded tax base only
for the purpose or combination of purposes expressed in the
proposition that receives a majority of the votes cast in the
subsequent election.
(h) If a municipality holds an election under this section
and, before the date the use of the revenue from the expanded tax
base is finally determined by the election, a municipality receives
a distribution of the municipality's share of taxes under this
chapter that includes revenue from the expanded tax base, the
municipality shall deposit the expanded tax base revenue in a
special account and may not use that money for any purpose until
the approved use is finally determined.
Sec. 321.2111. USE OF EXPANDED TAX BASE REVENUE: TAX LEVIED
FOR BENEFIT OF ANOTHER ENTITY. (a) This section applies to a
municipality in which a sales and use tax has been adopted at an
election held before September 1, 1997, and the municipality levies
the tax for the benefit of another entity such as an industrial
development corporation.
(b) Except as otherwise provided by this section, a
municipality to which this section applies shall use revenue from
the expanded tax base to reduce municipal property taxes.
(c) The governing body of a municipality to which this
section applies may call and hold an election on November 4, 1997,
on the question of using revenue from the expanded tax base
collected under the law authorizing the imposition of the tax for a
purpose other than or in addition to reducing municipal property
taxes.
(d) The order calling the election under this section must
allow the voters of the municipality to vote on whether the
expanded tax base revenue is required to be used to:
(1) reduce municipal property taxes;
(2) provide additional revenue that can be used for
any general purpose of the entity;
(3) provide funding for one or more specific projects
or types of projects that the entity is otherwise authorized to
undertake;
(4) rebate revenue to the municipality to provide
additional revenue for the municipality that can be used for one or
more specific projects or types of projects;
(5) rebate revenue to the municipality to provide
additional revenue for the municipality that can be used for any
general purpose of the municipality in accordance with Section
321.506; or
(6) provide funding for a combination of the purposes
described by this subsection.
(e) The ballot at the election held under this section shall
be printed to permit voting in separate propositions on the
purposes described by Subsection (d). If the governing body
authorizes a vote on using the revenue for a combination of
purposes, the ballot at the election must specify an amount or
percentage of an amount of revenue that shall be used for each
purpose. Regardless of the number of propositions on the ballot, a
voter may be allowed to vote in favor of only one proposition. A
voter may not be allowed to vote against any proposition.
(f) If the municipality holds an election under this
section, the entity or municipality, as appropriate, may use the
revenue from the expanded tax base only for the purpose or
combination of purposes expressed in the proposition that receives
a majority of the votes cast in the election. If no proposition
receives a majority of the votes cast in the election, the
governing body of the municipality shall call another election to
vote on the two propositions that received the highest and
second-highest number of votes in the election or that tie for the
highest number of votes. If more than two propositions tie for the
highest number of votes in the main election or two or more
propositions tie for the second-highest number of votes, the
governing body shall draw lots to determine which propositions are
to be voted on in the subsequent election.
(g) Not later than the fifth day after the date the final
canvass of the original election is completed, the governing body
shall order the subsequent election under Subsection (f). The
subsequent election shall be held not earlier than the 20th or
later than the 30th day after the date the final canvass of the
original election is completed. A subsequent election, however,
may be held after the 30th but not later than the 45th day after
the date the final canvass of the original election is completed if
the later date is necessary to:
(1) permit a joint election to be held with another
political subdivision in accordance with Chapter 271, Election
Code; or
(2) avoid holding the election on:
(A) a legal state or national holiday; or
(B) a weekend day within three days of a legal
state or national holiday.
(h) If the municipality holds a subsequent election, the
entity or municipality, as appropriate, may use the revenue from
the expanded tax base only for the purpose or combination of
purposes expressed in the proposition that receives a favorable
vote of a majority of the votes cast in the subsequent election.
(i) If a municipality holds an election under this section
and, before the date the use of the revenue from the expanded tax
base is finally determined by the election, a municipality receives
a distribution of the entity's share of taxes under this chapter
that includes revenue from the expanded tax base, the municipality
shall deposit the expanded tax base revenue in a special account
and the entity or municipality may not use that money for any
purpose until the approved use is finally determined.
(2) On page 258, lines 7-27, strike Section 4.43 of the bill
and substitute a new Section 4.43 to read as follows:
SECTION 4.43. Subchapter F, Chapter 321, Tax Code, is
amended by adding Section 321.508 to read as follows:
Sec. 321.508. USE OF TAX REVENUE FROM EXPANDED TAX BASE.
(a) Except as otherwise provided by this section, a municipality
that imposes a tax under this chapter or an entity for whom the
municipality levies a sales and use tax may use revenue from the
expanded tax base only to reduce municipal property taxes.
(b) If the municipality holds an election under this chapter
on the question of how to use the expanded tax base revenue, the
municipality may use the revenue only for the purpose or purposes
authorized by the voters under the applicable provisions of this
chapter.
(c) If all or part of the expanded tax base revenue is to be
used to reduce municipal property taxes, and the municipality also
imposes the additional sales and use tax under Section 321.101(b),
the expanded tax base revenue is treated as revenue from the
additional sales and use tax and Section 321.507 and the applicable
provisions of Title 1 apply.
(d) If all or part of the expanded tax base revenue is to be
used to reduce municipal property taxes, and the municipality does
not impose the additional sales and use tax under Section
321.101(b), the municipality is considered to have voted to adopt
the additional sales and use tax and Section 321.507 and the
applicable provisions of Title 1 apply to the expanded tax base
revenue.
(3) On page 263, line 4, through page 269, line 11, strike
Sections 4.46 and 4.47 of the bill and substitute new Sections 4.46
and 4.47 to read as follows:
SECTION 4.46. Subchapter C, Chapter 323, Tax Code, is
amended by adding Sections 323.210 and 323.2101 to read as follows:
Sec. 323.210. USE OF EXPANDED TAX BASE REVENUE; GENERAL
COUNTY TAX. (a) This section applies to a county that has adopted
the county sales and use tax authorized by this chapter at an
election held before September 1, 1997.
(b) The commissioners court of a county to which this
section applies may call and hold an election on November 4, 1997,
on the question of using revenue from the expanded tax base
collected under this chapter for a purpose in addition to or other
than reducing county property taxes.
(c) The order calling the election under this section shall
allow the voters of the county to vote on whether the expanded tax
base revenue is required to be used to:
(1) provide further reduction of county property
taxes;
(2) provide additional revenue for the county that can
be used for any general purpose of the county;
(3) provide funding for one or more specific projects
or types of projects; or
(4) provide funding for a combination of the purposes
described by this subsection.
(d) The ballot at the election held under this section shall
be printed to permit voting in separate propositions on the
purposes described by Subsection (c). If the commissioners court
authorizes a vote on using the revenue for a combination of
purposes, the ballot at the election must specify an amount or
percentage of the amount of revenue that shall be used for each
purpose. Regardless of the number of propositions on the ballot, a
voter may be allowed to vote in favor of only one proposition. A
voter may not be allowed to vote against any proposition.
(e) If the county holds an election under this section, the
county may use the revenue from the expanded tax base only for the
purpose or combination of purposes expressed in the proposition
that receives a majority of the votes cast in the election. If no
proposition receives a majority of the votes cast in the election,
the commissioners court shall call another election to vote on the
two propositions that received the highest and second-highest
number of votes in the election or that tie for the highest number
of votes. If more than two propositions tie for the highest number
of votes in the main election or two or more propositions tie for
the second-highest number of votes, the commissioners court shall
draw lots to determine which two propositions are to be voted on in
the subsequent election.
(f) Not later than the fifth day after the date the final
canvass of the original election is completed, the commissioners
court shall order the subsequent election under Subsection (e).
The subsequent election shall be held not earlier than the 20th or
later than the 30th day after the date the final canvass of the
original election is completed. A subsequent election, however,
may be held after the 30th but not later than the 45th day after
the date the final canvass of the original election is completed if
the later date is necessary to:
(1) permit a joint election to be held with another
political subdivision in accordance with Chapter 271, Election
Code; or
(2) avoid holding the election on:
(A) a legal state or national holiday; or
(B) a weekend day within three days of a legal
state or national holiday.
(g) If the county holds a subsequent election, the county
may use the revenue from the expanded tax base only for the purpose
or combination of purposes expressed in the proposition that
receives a majority of the votes cast in the subsequent election.
(h) If the county holds an election under this section and,
before the date the use of the revenue from the expanded tax base
is finally determined by the election, a county receives a
distribution of the county's share of taxes under this chapter that
includes revenue from the expanded tax base, the county shall
deposit the expanded tax base revenue in a special account and may
not use that money for any purpose until the approved use is
finally determined.
Sec. 323.2101. USE OF EXPANDED TAX BASE: TAX LEVIED FOR
SPECIAL PURPOSE. (a) This section applies to a county in which a
sales and use tax has been adopted at an election held before
September 1, 1997, and the county may use the revenue from that
tax only for a special purpose such as to provide funding for
health services or for the operation of a county landfill and a
criminal detention center.
(b) Except as otherwise provided by this section, a county
to which this section applies shall use revenue from the expanded
tax base to reduce county property taxes.
(c) The commissioners court of a county to which this
section applies may call and hold an election on November 4, 1997,
on the question of using revenue from the expanded tax base
collected under the law authorizing the imposition of the tax for a
purpose other than or in addition to reducing county property
taxes.
(d) The order calling the election under this section shall
allow the voters of the county to vote on whether the expanded tax
base revenue is required to be used to:
(1) reduce county property taxes;
(2) provide additional revenue that can be used for
any special purpose for which the tax is imposed;
(3) provide funding for one or more specific projects
or types of projects that the county is otherwise authorized to
undertake under the law authorizing the imposition of the tax;
(4) provide funding that can be used for one or more
specific projects or types of projects that the county is generally
authorized to undertake;
(5) provide additional revenue for the county that can
be used for any general purpose of the county; or
(6) provide funding for a combination of the purposes
described by this subsection.
(e) The ballot at the election held under this section shall
be printed to permit voting in separate propositions on the
purposes described by Subsection (d). If the commissioners court
authorizes a vote on using the revenue for a combination of
purposes, the ballot at the election must specify an amount or
percentage of an amount of revenue that shall be used for each
purpose. Regardless of the number of propositions on the ballot,
a voter may be allowed to vote in favor of only one proposition. A
voter may not be allowed to vote against any proposition.
(f) If the county holds an election under this section, the
county may use the revenue from the expanded tax base only for the
purpose or combination of purposes expressed in the proposition
that receives a majority of the votes cast in the election. If no
proposition receives a majority of the votes cast in the election,
the commissioners court shall call another election to vote on the
two propositions that received the highest and second-highest
number of votes in the election or that tie for the highest number
of votes. If more than two propositions tie for the highest number
of votes in the election or two or more propositions tie for the
second-highest number of votes, the commissioners court shall draw
lots to determine which two propositions are to be voted on in the
subsequent election.
(g) Not later than the fifth day after the date the final
canvass of the original election is completed, the commissioners
court shall order the subsequent election under Subsection (f).
The subsequent election shall be held not earlier than the 20th or
later than the 30th day after the date the final canvass of the
original election is completed. A subsequent election, however,
may be held after the 30th but not later than the 45th day after
the date the final canvass of the original election is completed if
the later date is necessary to:
(1) permit a joint election to be held with another
political subdivision in accordance with Chapter 271, Election
Code; or
(2) avoid holding the election on:
(A) a legal state or national holiday; or
(B) a weekend day within three days of a legal
state or national holiday.
(h) If the county holds a subsequent election under this
section, the county may use the revenue from the expanded tax base
only for the purpose or combination of purposes expressed in the
proposition that receives a majority of the votes cast in the
subsequent election.
(i) If a county holds an election under this section and,
before the date the use of the revenue from the expanded tax base
is finally determined under this section, a county receives a
distribution of the county's share of taxes under this chapter that
includes revenue from the expanded tax base, the county shall
deposit the expanded tax base revenue in a special account and may
not use that money for any purpose until the approved use is
finally determined.
SECTION 4.47. Subchapter F, Chapter 323, Tax Code, is
amended by adding Section 323.506 to read as follows:
Sec. 323.506. USE OF TAX REVENUE FROM EXPANDED TAX BASE.
(a) Except as otherwise provided by this section, a county that
imposes a county sales and use tax under this chapter or under
another chapter for a special purpose may use revenue from the
expanded tax base only to reduce county property taxes.
(b) If a county holds an election under this chapter on the
question of how to use the expanded tax base revenue, the county
may use the revenue only for the purpose or purposes authorized by
the voters under the applicable provisions of this chapter.
(c) If all or part of the additional revenue is to be used
to reduce county property taxes, the county shall use the money as
required by Section 323.505 and the applicable provisions of Title
1.
(d) If all or part of the additional revenue is to be used
for a purpose other than to reduce county property taxes, that
revenue is not considered to be sales and use tax revenue for the
purposes of Title 1.
(4) On page 270, strike lines 4-27, on page 271, strike
lines 1-27, on page 272, strike lines 1-27, and on page 273, strike
lines 1-10 and substitute the following:
Sec. 326.021. APPLICATION OF SUBCHAPTER. This subchapter
applies to a political subdivision that imposes an ad valorem tax
and voted to impose a sales and use tax governed by Chapter 321 or
323 before September 1, 1997.
Sec. 326.022. USE OF EXPANDED TAX BASE. Except as otherwise
provided by this subchapter, a political subdivision to which this
subchapter applies shall use revenue from the expanded tax base to
reduce the political subdivision's property taxes.
Sec. 326.023. ELECTION FOR USE OF EXPANDED TAX BASE. (a)
The governing body of a political subdivision to which this
subchapter applies may call and hold an election on November 4,
1997, on the question of using revenue from the expanded tax base
collected under the law authorizing the imposition of the tax for a
purpose other than or in addition to reducing property taxes.
(b) The order calling the election under this section must
allow the voters of the political subdivision to vote on whether
the expanded tax base revenue is required to be used to:
(1) reduce property taxes of the political
subdivision;
(2) provide additional revenue for the political
subdivision that can be used for any general purpose of the
political subdivision;
(3) provide funding for one or more specific projects
or types of projects otherwise authorized for the political
subdivision; or
(4) provide funding for a combination of the purposes
described by this subsection.
(c) The ballot at the election held under this section shall
be printed to permit voting in separate propositions on the
purposes described by this section. If the governing body
authorizes a vote on using the revenue for a combination of
purposes, the ballot at the election must specify an amount or
percentage of the amount of revenue that shall be used for each
purpose. Regardless of the number of propositions on the ballot, a
voter may be allowed to vote in favor of only one proposition. A
voter may not be allowed to vote against any proposition.
(d) If the political subdivision holds an election under
this section, the political subdivision may use the revenue from
the expanded tax base only for the purpose or combination of
purposes expressed in the proposition that receives a majority of
the votes cast in the election. If no proposition receives a
majority of the votes cast in the election, the governing body
shall call another election to vote on the two propositions that
received the highest and second-highest number of votes in the
election or that tie for the highest number of votes. If more than
two propositions tie for the highest number of votes in the
election or two or more propositions tie for the second-highest
number of votes, the governing body shall draw lots to determine
which two propositions are to be voted on in the subsequent
election.
(e) Not later than the fifth day after the date the final
canvass of the original election is completed, the governing body
shall order the subsequent election under Subsection (d). The
subsequent election shall be held not earlier than the 20th or
later than the 30th day after the date the final canvass of the
original election is completed. A subsequent election, however,
may be held after the 30th but not later than the 45th day after
the date the final canvass of the original election is completed if
the later date is necessary to:
(1) permit a joint election to be held with another
political subdivision in accordance with Chapter 271, Election
Code; or
(2) avoid holding the election on:
(A) a legal state or national holiday; or
(B) a weekend day within three days of a legal
state or national holiday.
(f) If the political subdivision holds a subsequent
election, the political subdivision may use the revenue from the
expanded tax base only for the purpose or combination of purposes
expressed in the proposition that receives a majority of the votes
cast in the subsequent election.
(g) If a political subdivision holds an election under this
section and, before the date the use of the revenue from the
expanded tax base is finally determined under this section, a
political subdivision receives a distribution of the political
subdivision's share of taxes under this chapter that includes
revenue from the expanded tax base, the political subdivision shall
deposit the expanded tax base revenue in a special account and may
not use that money for any purpose until the approved use is
finally determined.
Sec. 326.024. USE OF TAX REVENUE. (a) Except as otherwise
provided by this section, a political subdivision to which this
subchapter applies may use the revenue from the expanded tax base
only to reduce the political subdivision's property taxes.
(b) If the political subdivision holds an election under
this subchapter on the question of how to use the expanded tax base
revenue, the political subdivision may use the revenue only for the
purpose or purposes authorized by the voters.
(c) If all or part of the additional revenue is to be used
to reduce property taxes, the political subdivision is considered
to have voted to impose the municipal additional sales and use tax
or the county sales and use tax and Section 321.507 or 323.505, as
appropriate, applies. Regardless, the applicable provisions of
Title 1 apply.
Sections 326.025-326.050 reserved for expansion