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1-28     election held in the city, the tax is repealed.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1-31     a limit on its period of imposition is effective until repealed by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.

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