1-1 AN ACT
1-2 relating to the extension or reimposition of the sales and use tax
1-3 by certain industrial development corporations.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 4A(n), Development Corporation Act of
1-6 1979 (Article 5190.6, Vernon's Texas Civil Statutes), is amended to
1-7 read as follows:
1-8 (n) At an election called and held under Subsection (d) or
1-9 (o) of this section, the city may also allow the voters to vote on
1-10 a ballot proposition that limits the length of time that a sales
1-11 and use tax may be imposed. If a city elects to limit the period
1-12 the sales and use tax may be imposed, there shall be added to the
1-13 end of the ballot proposition prescribed by Subsection (m) of this
1-14 section: "to be imposed for ________ years" (the number of years
1-15 to be inserted as appropriate). The governing body of the city
1-16 shall set the expiration date of the proposed tax to occur on the
1-17 appropriate anniversary of the effective date of the tax. A sales
1-18 and use tax imposed for a limited period under this subsection
1-19 expires on the date set by the governing body under this section or
1-20 on an earlier date if, by a majority of the voters voting in an
1-21 election held in the city, the tax is repealed. If an earlier
1-22 abolition election is held, Sections 321.102(a) and 321.402(b), Tax
1-23 Code, apply to the date of repeal. A tax that is approved without
1-24 a limit on its period of imposition is effective until repealed by
2-1 election. Before the 60th day before the date that a tax is to
2-2 expire, the governing body shall send a notice to the comptroller
2-3 stating the expiration date of the tax. Revenue collected after
2-4 the expiration of the tax from the imposition of the tax after its
2-5 expiration date shall be forwarded by the state to the governing
2-6 body to be used to pay current bonded indebtedness of the
2-7 municipality. A municipality that has imposed a tax under this
2-8 section may not extend the period of the tax's imposition or
2-9 reimpose the tax unless the extension or reimposition is authorized
2-10 by a majority of the qualified voters of the municipality voting
2-11 in an election called and held for that purpose [after its
2-12 expiration date]. If a city reduces the rate of an additional
2-13 sales and use tax under Chapter 321, Tax Code, to impose a tax
2-14 under this section for a limited period as provided under this
2-15 subsection, and does not have an election to change the rate of the
2-16 additional sales and use tax before the expiration date of the tax
2-17 under this section, the rate of the additional sales and use tax
2-18 under Section 321.101(b), Tax Code, in the city returns to its
2-19 previous rate in effect at the time the tax imposed under this
2-20 section was adopted on the expiration date of the tax under this
2-21 section without having to hold an election under Chapter 321, Tax
2-22 Code, to impose the increase in the rate.
2-23 SECTION 2. The importance of this legislation and the
2-24 crowded condition of the calendars in both houses create an
2-25 emergency and an imperative public necessity that the
2-26 constitutional rule requiring bills to be read on three several
2-27 days in each house be suspended, and this rule is hereby suspended,
3-1 and that this Act take effect and be in force from and after its
3-2 passage, and it is so enacted.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1310 was passed by the House on May
5, 1997, by a non-record vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 1310 was passed by the Senate on May
26, 1997, by the following vote: Yeas 31, Nays 0.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor