1-1 By: Chisum (Senate Sponsor - Bivins) H.B. No. 1310
1-2 (In the Senate - Received from the House May 6, 1997;
1-3 May 7, 1997, read first time and referred to Committee on
1-4 Intergovernmental Relations; May 15, 1997, reported favorably by
1-5 the following vote: Yeas 11, Nays 0; May 15, 1997, sent to
1-6 printer.)
1-7 A BILL TO BE ENTITLED
1-8 AN ACT
1-9 relating to the extension or reimposition of the sales and use tax
1-10 by certain industrial development corporations.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Section 4A(n), Development Corporation Act of
1-13 1979 (Article 5190.6, Vernon's Texas Civil Statutes), is amended to
1-14 read as follows:
1-15 (n) At an election called and held under Subsection (d) or
1-16 (o) of this section, the city may also allow the voters to vote on
1-17 a ballot proposition that limits the length of time that a sales
1-18 and use tax may be imposed. If a city elects to limit the period
1-19 the sales and use tax may be imposed, there shall be added to the
1-20 end of the ballot proposition prescribed by Subsection (m) of this
1-21 section: "to be imposed for ________ years" (the number of years
1-22 to be inserted as appropriate). The governing body of the city
1-23 shall set the expiration date of the proposed tax to occur on the
1-24 appropriate anniversary of the effective date of the tax. A sales
1-25 and use tax imposed for a limited period under this subsection
1-26 expires on the date set by the governing body under this section or
1-27 on an earlier date if, by a majority of the voters voting in an
1-28 election held in the city, the tax is repealed. If an earlier
1-29 abolition election is held, Sections 321.102(a) and 321.402(b), Tax
1-30 Code, apply to the date of repeal. A tax that is approved without
1-31 a limit on its period of imposition is effective until repealed by
1-32 election. Before the 60th day before the date that a tax is to
1-33 expire, the governing body shall send a notice to the comptroller
1-34 stating the expiration date of the tax. Revenue collected after
1-35 the expiration of the tax from the imposition of the tax after its
1-36 expiration date shall be forwarded by the state to the governing
1-37 body to be used to pay current bonded indebtedness of the
1-38 municipality. A municipality that has imposed a tax under this
1-39 section may not extend the period of the tax's imposition or
1-40 reimpose the tax unless the extension or reimposition is authorized
1-41 by a majority of the qualified voters of the municipality voting
1-42 in an election called and held for that purpose [after its
1-43 expiration date]. If a city reduces the rate of an additional
1-44 sales and use tax under Chapter 321, Tax Code, to impose a tax
1-45 under this section for a limited period as provided under this
1-46 subsection, and does not have an election to change the rate of the
1-47 additional sales and use tax before the expiration date of the tax
1-48 under this section, the rate of the additional sales and use tax
1-49 under Section 321.101(b), Tax Code, in the city returns to its
1-50 previous rate in effect at the time the tax imposed under this
1-51 section was adopted on the expiration date of the tax under this
1-52 section without having to hold an election under Chapter 321, Tax
1-53 Code, to impose the increase in the rate.
1-54 SECTION 2. The importance of this legislation and the
1-55 crowded condition of the calendars in both houses create an
1-56 emergency and an imperative public necessity that the
1-57 constitutional rule requiring bills to be read on three several
1-58 days in each house be suspended, and this rule is hereby suspended,
1-59 and that this Act take effect and be in force from and after its
1-60 passage, and it is so enacted.
1-61 * * * * *