SRC-HRD S.B. 1951 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 1951
By: Wentworth
Intergovernmental Relations
5-13-97
As Filed


DIGEST 

Currently, Texas law provides for the collection of a sales and use tax by
metropolitan rapid transit authorities.  Voters in an authority must
authorize the sales and use tax rate to be collected, which cannot exceed
one percent.  In certain cases, authorization to collect the maximum tax
rate was approved by the voters at the same election that created the
authority, but the full authorization was not collected initially.  As a
result, the board of such an authority has been able to increase the rate
at which the sales and use tax is collected over the years without further
approval by the voters. There is no method for the public to force the
board to lower the rate.             

The bill would provide for the automatic expiration of a tax rate set in
certain transit authorities at three-quarters of one percent or one
percent unless the continuation of that tax rate is approved by a majority
of votes at an election called for that purpose.                       

PURPOSE

As proposed, S.B. 1951 provides for the automatic expiration of a tax rate
set in  certain transit authorities at three-quarters of one percent or
one percent unless the continuation of that tax rate is approved by a
majority of votes at an election called for that purpose.  
                          
RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 451I, Transportation Code, by adding Section
451.4051, as follows: 

Sec. 451.4051.  TAX RATE IN CERTAIN AUTHORITIES.  Provides that this
section applies only to a rapid transit authority in which the governing
board of the rapid transit authority has lowered the tax rate from the
maximum permissible amount and subsequently raised the tax rate back to
the maximum permissible amount.  Sets forth provisions applicable if on
September 1, 1997, a rapid transit authority to which this section applies
has in effect a sales and use tax of three-quarters of one percent or one
percent.  Sets forth requirements regarding the ballots at an election
held under this section.  Provides that Sections 451.411-451.413 apply to
an election under this section as if the election were held to increase or
decrease the tax rate.  Sets forth provisions applicable if a tax rate
expires under this section.   

SECTION 2. Emergency clause.
  Effective date: upon passage.