JWB S.B. 1805 75(R)BILL ANALYSIS WAYS & MEANS S.B. 1805 By: Nixon, Drew (Sadler) 5-13-97 Committee Report (Unamended) BACKGROUND Current law allows municipalities to submit tax proposals to the voters for approval. In certain instances (the city of Carthage, for example), municipalities have given proposals to the voters adopting two tax proposals in a single proposition. This combination of two tax proposals into one proposal was found to be unauthorized by the attorney general. PURPOSE The bill outlines provisions regarding the adoption or increase of local sales and use taxes by a municipality or county in which previous elections adopting the new taxes are invalid. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1.Amends Section 321.101, Tax Code (Tax Authorized), by adding Subsection (i) to provide that a municipality in which the adoption or increase of a sales and use tax approved by the voters in an election held after May 1, 1995, and before December 31, 1995, is invalid because it combined into a single proposition proposals for adopting an economic development sales and use tax under Section 4B, Article 5190.6, Vernon's Texas Civil Statutes, and an additional sales and use tax under Section 321.101(b), Tax Code (Tax Authorized), may adopt or increase the sales and use tax previously approved by the voters. Provides that if the governing body of the municipality adopts or increases the sales and use tax under this subsection, the municipal secretary shall send to the comptroller, by certified or registered mail, a certified copy of the ordinance or resolution. Provides that the tax takes effect on the first day of the month following the expiration of the calendar quarter occurring after the date on which the comptroller receives the ordinance or resolution. SECTION 2.Emergency clause. Effective date: upon passage.