By: Madla, et al. S.B. No. 935
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the financing of community venues and related
1-2 infrastructure in certain municipalities or counties; authorizing
1-3 the imposition of certain local taxes and the issuance of local
1-4 bonds; providing penalties.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Subtitle C, Title 10, Local Government Code, is
1-7 amended by adding Chapters 334 and 335 to read as follows:
1-8 CHAPTER 334. COMMUNITY VENUES
1-9 SUBCHAPTER A. GENERAL PROVISIONS
1-10 Sec. 334.001. DEFINITIONS. In this chapter:
1-11 (1) "Approved community venue project" means a
1-12 community venue project that has been approved under this chapter
1-13 by the voters of a municipality or county.
1-14 (2) "Governing body" means the governing body of a
1-15 municipality or the commissioners court of a county.
1-16 (3) "Related infrastructure" means any store,
1-17 restaurant, concession, automobile parking facility, area
1-18 transportation facility, road, street, water or sewer facility, or
1-19 other on-site or off-site improvement that relates to and enhances
1-20 the use, value, or appeal of a community venue and any other
1-21 expenditure reasonably necessary to construct, improve, renovate,
1-22 or expand a community venue.
1-23 (4) "Community venue" means an arena, coliseum,
2-1 stadium, or other type of area or facility for which a fee for
2-2 admission to the community events, athletic events, rodeos,
2-3 livestock shows, agricultural expositions, and other civic,
2-4 charitable, or promotional events is charged or is planned to be
2-5 charged.
2-6 (5) "Community venue project" means a community venue
2-7 and related infrastructure that is planned, acquired, established,
2-8 developed, constructed, or renovated under this chapter.
2-9 Sec. 334.002. APPLICATION OF CHAPTER. (a) Except as
2-10 provided by Subsection (b), this chapter applies only to:
2-11 (1) a county with a population of less than 1.5
2-12 million; and
2-13 (2) a municipality located in a county described by
2-14 Subdivision (1).
2-15 (b) This chapter does not apply to a municipality with a
2-16 population of more than 500,000 that is situated in a county
2-17 bordering the United Mexican States and that has an athletic event,
2-18 as defined by Section 326.001, Tax Code, located within the
2-19 municipality's boundaries.
2-20 Sec. 334.003. APPLICATION TO COMMUNITY VENUE CONSTRUCTED
2-21 UNDER OTHER LAW. A county or municipality may use this chapter for
2-22 a community venue project relating to a community venue and related
2-23 infrastructure planned, acquired, established, developed,
2-24 constructed, or renovated under other law, including Section 4B,
2-25 Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas
3-1 Civil Statutes), or Subchapter E, Chapter 451, Transportation Code.
3-2 Sec. 334.004. OTHER USES OF COMMUNITY VENUE PERMITTED. This
3-3 chapter does not prohibit the use of a community venue for an event
3-4 that is not related to sports or athletics, such as a
3-5 community-related event, including a rodeo, livestock show,
3-6 agricultural exposition, public school event, or other promotional
3-7 or entertainment event.
3-8 (Sections 334.005-334.020 reserved for expansion
3-9 SUBCHAPTER B. COMMUNITY VENUE PROJECTS
3-10 Sec. 334.021. RESOLUTION AUTHORIZING PROJECT. (a) A county
3-11 or municipality by resolution may provide for the planning,
3-12 acquisition, establishment, development, construction, or
3-13 renovation of a community venue project if:
3-14 (1) the comptroller determines under Section 334.022
3-15 or 334.023 that the implementation of the resolution will not have
3-16 a negative fiscal impact on state revenue; and
3-17 (2) the resolution is approved by a majority of the
3-18 qualified voters of the municipality or county voting at an
3-19 election called and held for that purpose under Section 334.024.
3-20 (b) The resolution must designate the community venue
3-21 project and each method of financing authorized by this chapter
3-22 that the municipality or county wants to use to finance the
3-23 project. A resolution may designate more than one method of
3-24 financing.
3-25 Sec. 334.022. STATE FISCAL IMPACT ANALYSIS. (a) Before
4-1 calling an election on the resolution under Section 334.024, the
4-2 municipality or county shall send a copy of the resolution to the
4-3 comptroller.
4-4 (b) Before the 15th day after the date the comptroller
4-5 receives the copy of the resolution, the comptroller shall:
4-6 (1) perform an analysis to determine if approval and
4-7 implementation of the resolution will have a negative fiscal impact
4-8 on state revenue; and
4-9 (2) provide to the municipality or county written
4-10 notice of the results of the analysis.
4-11 (c) If the comptroller does not complete the analysis and
4-12 provide the notice before the 15th day after the date the
4-13 comptroller receives the copy of the resolution, the comptroller is
4-14 considered to have determined that approval and implementation of
4-15 the resolution will not have a negative fiscal impact on state
4-16 revenue.
4-17 Sec. 334.023. APPEAL OF COMPTROLLER DETERMINATION. (a) If
4-18 the comptroller determines under Section 334.022 that
4-19 implementation of the resolution will have a negative fiscal impact
4-20 on state revenue, the municipality or county may:
4-21 (1) contest the finding by filing an appeal with the
4-22 comptroller not later than the 10th day after the date the
4-23 municipality or county receives the written notice under Section
4-24 334.022; or
4-25 (2) ask the comptroller to provide information on how
5-1 to change the resolution so that implementation will not have a
5-2 negative fiscal impact on state revenue.
5-3 (b) Before the 11th day after the date the comptroller
5-4 receives the appeal or request for information under Subsection
5-5 (a), the comptroller shall, as appropriate:
5-6 (1) perform a new analysis to determine if
5-7 implementation of the resolution will have a negative fiscal impact
5-8 on state revenue and provide to the municipality or county written
5-9 notice of the results of the analysis; or
5-10 (2) provide to the municipality or county written
5-11 information on how to change the resolution so that implementation
5-12 will not have a negative fiscal impact on state revenue.
5-13 (c) If the comptroller determines that implementation will
5-14 have a negative fiscal impact on state revenue, the written
5-15 analysis required under Subsection (b)(1) must include information
5-16 on how to change the resolution so that implementation will not
5-17 have a negative fiscal impact on state revenue.
5-18 (d) If the comptroller does not comply with Subsection (b)
5-19 before the 11th day after the date the comptroller receives the
5-20 appeal or request for information, the comptroller is considered to
5-21 have determined that approval and implementation of the resolution
5-22 will not have a negative fiscal impact on state revenue.
5-23 Sec. 334.024. ELECTION. (a) If the comptroller determines
5-24 under Section 334.022 or 334.023 that the implementation of the
5-25 resolution will not have a negative fiscal impact on state revenue,
6-1 the governing body of the municipality or county may order an
6-2 election on the question of approving and implementing the
6-3 resolution.
6-4 (b) The order calling the election must:
6-5 (1) allow the voters to vote separately on each
6-6 community venue project;
6-7 (2) designate the community venue project;
6-8 (3) designate each method of financing authorized by
6-9 this chapter that the municipality or county wants to use to
6-10 finance the project and the maximum rate of each method; and
6-11 (4) allow the voters to vote, in the same proposition
6-12 or in separate propositions, on each method of financing authorized
6-13 by this chapter that the municipality or county wants to use to
6-14 finance the project and the maximum rate of each method.
6-15 (c) The order calling the election may also allow the voters
6-16 to vote, in the same proposition or in separate propositions, on
6-17 one or more other unrelated projects proposed by the municipality
6-18 or county, including a project authorized by Section 4A or 4B,
6-19 Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas
6-20 Civil Statutes), or a water, road, or sewer project.
6-21 (d) The ballot at the election held under this section must
6-22 be printed to permit voting for or against the proposition:
6-23 "Authorizing ________ (insert name of municipality or county) to
6-24 _______ (insert description of community venue project) and to
6-25 impose a ________ tax at the rate of ________ (insert the type of
7-1 tax and the maximum rate of the tax) for the purpose of financing
7-2 the community venue project."
7-3 (e) If more than one method of financing is to be voted on
7-4 in one proposition, the ballot must be printed to permit voting for
7-5 or against the proposition: "Authorizing ________ (insert name of
7-6 municipality or county) to ________ (insert description of
7-7 community venue project) and to impose a ________ tax at the rate
7-8 of _______ (insert each type of tax and the maximum rate of each
7-9 tax) for the purpose of financing the community venue project."
7-10 (f) If a community venue project and one or more unrelated
7-11 projects are to be voted on in the same proposition in accordance
7-12 with Subsection (c), the applicable ballot language required by
7-13 Subsection (d) or (e) must be modified as necessary to allow for a
7-14 vote on all the projects.
7-15 (g) The Election Code governs an election held under this
7-16 chapter, except that the uniform election date provisions of
7-17 Section 41.001(a), Election Code, do not apply to an election
7-18 ordered under this section.
7-19 (Sections 334.025-334.040 reserved for expansion
7-20 SUBCHAPTER C. POWERS AND DUTIES
7-21 Sec. 334.041. GENERAL POWERS. (a) A municipality or county
7-22 may perform any act necessary to the full exercise of the
7-23 municipality's or county's powers under this chapter.
7-24 (b) A municipality or county may acquire, sell, lease,
7-25 convey, or otherwise dispose of property or an interest in
8-1 property, including an approved community venue project, under
8-2 terms and conditions determined by the municipality or county.
8-3 (c) A municipality or county may contract with a public or
8-4 private person, including a sports team, club, organization, or
8-5 other entity to:
8-6 (1) plan, acquire, establish, develop, construct, or
8-7 renovate an approved community venue project; or
8-8 (2) perform any other act the municipality or county
8-9 is authorized to perform under this chapter.
8-10 (d) If a municipality or county contracts with a sports team
8-11 or club for the construction, renovation, or operation of an
8-12 approved community venue project, the municipality or county is not
8-13 a party to a subsequent contract between the team or club and
8-14 another person relating to the project. The competitive bidding
8-15 laws, including Chapter 271, do not apply to a contract between a
8-16 team or club and another person under this subsection.
8-17 Sec. 334.042. COMMUNITY VENUE PROJECT FUND. (a) A
8-18 municipality or county in which an approved community venue project
8-19 is located shall establish by resolution a fund known as the
8-20 community venue project fund.
8-21 (b) The municipality or county shall deposit into the
8-22 community venue project fund:
8-23 (1) the proceeds of any tax imposed by the
8-24 municipality or county under this chapter;
8-25 (2) all revenue from the sale of bonds or other
9-1 obligations by the municipality or county under this chapter; and
9-2 (3) any other money required by law to be deposited in
9-3 the fund.
9-4 (c) The municipality or county may deposit into the
9-5 community venue project fund:
9-6 (1) money derived from innovative funding concepts
9-7 such as the sale or lease of luxury boxes or the sale of licenses
9-8 for personal seats; and
9-9 (2) any other revenue derived from the approved
9-10 community venue project, including stadium rental payments and
9-11 revenue from concessions and parking.
9-12 (d) The municipality or county may use money in the
9-13 community venue project fund only to:
9-14 (1) pay the costs of planning, acquiring,
9-15 establishing, developing, constructing, or renovating one or more
9-16 approved community venue projects in the municipality or county;
9-17 (2) pay the principal of, interest on, and other costs
9-18 relating to bonds or other obligations issued by the municipality
9-19 or county or to refund bonds, notes, or other obligations; or
9-20 (3) pay the costs of operating or maintaining one or
9-21 more approved community venue projects during the planning,
9-22 acquisition, establishment, development, construction, or
9-23 renovation or while bonds, notes, or other obligations for the
9-24 planning, acquisition, establishment, development, construction, or
9-25 renovation are outstanding.
10-1 (e) Money deposited into the community venue project fund,
10-2 including money deposited under Subsection (c), is the property of
10-3 the municipality or county depositing the money.
10-4 Sec. 334.043. BONDS AND OTHER OBLIGATIONS. (a) A
10-5 municipality or county in which an approved community venue project
10-6 is located may issue bonds, including revenue bonds and refunding
10-7 bonds, or other obligations to pay the costs of the approved
10-8 community venue project.
10-9 (b) The bonds or other obligations and the proceedings
10-10 authorizing the bonds or other obligations shall be submitted to
10-11 the attorney general for review and approval as required by Article
10-12 3, Chapter 53, Acts of the 70th Legislature, 2nd Called Session,
10-13 1987 (Article 717k-8, Vernon's Texas Civil Statutes).
10-14 (c) The bonds or other obligations must be payable from and
10-15 secured by the revenue in the community venue project fund.
10-16 (d) The bonds or other obligations may mature serially or
10-17 otherwise not more than 30 years from their date of issuance.
10-18 (e) The bonds or other obligations are not a debt of and do
10-19 not create a claim for payment against the revenue or property of
10-20 the municipality or county other than an approved community venue
10-21 project for which the bonds are issued.
10-22 Sec. 334.044. PUBLIC PURPOSE OF PROJECT. (a) The
10-23 legislature finds for all constitutional and statutory purposes
10-24 that an approved community venue project is owned, used, and held
10-25 for public purposes by the municipality or county.
11-1 (b) Section 25.07(a), Tax Code, does not apply to a
11-2 leasehold or other possessory interest granted by the municipality
11-3 or county while the municipality or county owns the project.
11-4 (c) The project is exempt from taxation under Section 11.11,
11-5 Tax Code, while the municipality or county owns the project.
11-6 (Sections 334.045-334.080 reserved for expansion
11-7 SUBCHAPTER D. SALES AND USE TAX
11-8 Sec. 334.081. SALES AND USE TAX. (a) A municipality by
11-9 ordinance or a county by order may impose a sales and use tax under
11-10 this subchapter.
11-11 (b) A municipality by ordinance or a county by order may
11-12 repeal or decrease the rate of a tax imposed under this subchapter.
11-13 (c) A municipality or county may impose a tax under this
11-14 subchapter only if:
11-15 (1) an approved community venue project is or is
11-16 planned to be located in the municipality or county; and
11-17 (2) the tax is approved at an election held under
11-18 Section 334.024.
11-19 Sec. 334.082. TAX CODE APPLICABLE. (a) Chapter 321, Tax
11-20 Code, governs the imposition, computation, administration,
11-21 collection, and remittance of a municipal tax authorized under this
11-22 subchapter except as inconsistent with this subchapter.
11-23 (b) Chapter 323, Tax Code, governs the imposition,
11-24 computation, administration, collection, and remittance of a county
11-25 tax authorized under this subchapter except as inconsistent with
12-1 this subchapter.
12-2 Sec. 334.083. TAX RATE. (a) The rate of a tax adopted
12-3 under this subchapter must be one-eighth, one-fourth,
12-4 three-eighths, or one-half of one percent.
12-5 (b) The ballot proposition at the election held to adopt the
12-6 tax must specify the rate of the tax to be adopted.
12-7 Sec. 334.084. RATE INCREASE. (a) A municipality or county
12-8 that has adopted a sales and use tax under this subchapter at a
12-9 rate of less than one-half of one percent may by ordinance or order
12-10 increase the rate of the tax if the increase is approved by a
12-11 majority of the registered voters of the municipality or county
12-12 voting at an election called and held for that purpose.
12-13 (b) The tax may be increased under Subsection (a) in one or
12-14 more increments of one-eighth of one percent to a maximum of
12-15 one-half of one percent.
12-16 (c) The ballot for an election to increase the tax shall be
12-17 printed to permit voting for or against the proposition: "The
12-18 adoption of a sales and use tax for the purpose of financing
12-19 ___________________ (insert description of community venue project)
12-20 at the rate of ______ (insert one-fourth, three-eighths, or
12-21 one-half, as appropriate) of one percent."
12-22 Sec. 334.085. IMPOSITION IN MUNICIPALITY OR COUNTY WITH
12-23 TRANSIT AUTHORITY. (a) If a municipality or county is included
12-24 within the boundaries of a rapid transit authority created under
12-25 Chapter 451, Transportation Code, or a regional transportation
13-1 authority created under Chapter 452, Transportation Code, and the
13-2 adoption or increase of the tax under this subchapter would result
13-3 in a combined tax rate of more than two percent in any location in
13-4 the municipality or county, the election to approve or increase the
13-5 tax under this chapter is to be treated for all purposes as an
13-6 election to reduce the tax rate of the transit or transportation
13-7 authority to the highest rate that will not result in a combined
13-8 tax rate of more than two percent in any location in the
13-9 municipality or county.
13-10 (b) The rate of the tax imposed by a rapid transit authority
13-11 under Chapter 451, Transportation Code, or by a regional
13-12 transportation authority under Chapter 452, Transportation Code, is
13-13 increased without further action of the board of the authority or
13-14 the voters of the authority, municipality, or county on the date on
13-15 which the tax imposed under this subchapter is decreased or
13-16 expires, but only to the extent that any tax imposed by the
13-17 authority was reduced under this section when the tax imposed by
13-18 the county was adopted or increased.
13-19 (c) This section does not permit an authority to impose
13-20 taxes at different rates within the territory of the authority.
13-21 Sec. 334.086. IMPOSITION OF TAX. (a) If the municipality
13-22 or county adopts a tax under this subchapter, a tax is imposed on
13-23 the receipts from the sale at retail of taxable items in the
13-24 municipality or county at the rate approved at the election.
13-25 (b) There is also imposed an excise tax on the use, storage,
14-1 or other consumption in the municipality or county of tangible
14-2 personal property purchased, leased, or rented from a retailer
14-3 during the period that the tax is effective in the municipality or
14-4 county. The rate of the excise tax is the same as the rate of the
14-5 sales tax portion of the tax and is applied to the sale price of
14-6 the tangible personal property.
14-7 Sec. 334.087. EFFECTIVE DATE OF TAX. The adoption of a tax
14-8 or the change of the tax rate under this subchapter takes effect on
14-9 the first day of the first calendar quarter occurring after the
14-10 expiration of the first complete quarter occurring after the date
14-11 on which the comptroller receives a notice of the results of the
14-12 election adopting or increasing the tax or of the ordinance or
14-13 order decreasing the tax.
14-14 Sec. 334.088. DEPOSIT OF TAX REVENUES. Revenue from the tax
14-15 imposed under this subchapter shall be deposited in the community
14-16 venue project fund of the municipality or county imposing the tax.
14-17 Sec. 334.089. ABOLITION OF TAX. (a) A sales and use tax
14-18 imposed under this subchapter may not be collected after the last
14-19 day of the first calendar quarter occurring after notification to
14-20 the comptroller by the municipality or county that the municipality
14-21 or county has abolished the tax or that all bonds or other
14-22 obligations of the municipality or county that are payable in whole
14-23 or in part from money in the community venue project fund,
14-24 including any refunding bonds or other obligations, have been paid
14-25 in full or the full amount of money, exclusive of guaranteed
15-1 interest, necessary to pay in full the bonds and other obligations
15-2 has been set aside in a trust account dedicated to the payment of
15-3 the bonds and other obligations.
15-4 (b) The municipality or county shall notify the comptroller
15-5 of the expiration of the tax not later than the 60th day before the
15-6 expiration date.
15-7 (Sections 334.090-334.100 reserved for expansion
15-8 SUBCHAPTER E. SHORT-TERM MOTOR VEHICLE RENTAL TAX
15-9 Sec. 334.101. DEFINITIONS. (a) In this subchapter:
15-10 (1) "Motor vehicle" means a self-propelled vehicle
15-11 designed principally to transport persons or property on a public
15-12 roadway and includes a passenger car, van, station wagon, sport
15-13 utility vehicle, and truck. The term does not include a:
15-14 (A) trailer, semitrailer, house trailer, truck
15-15 having a manufacturer's rating of more than one-half ton, or
15-16 road-building machine;
15-17 (B) device moved only by human power;
15-18 (C) device used exclusively on stationary rails
15-19 or tracks;
15-20 (D) farm machine; or
15-21 (E) mobile office.
15-22 (2) "Place of business of the owner" means an
15-23 established outlet, office, or location operated by the owner of a
15-24 motor vehicle or the owner's agent or employee for the purpose of
15-25 renting motor vehicles and includes any location at which three or
16-1 more rentals are made during a year.
16-2 (3) "Rental" means an agreement by the owner of a
16-3 motor vehicle to authorize for not longer than 30 days the
16-4 exclusive use of that vehicle to another for consideration.
16-5 (b) Except as provided by Subsection (a), words used in this
16-6 subchapter and defined by Chapter 152, Tax Code, have the meanings
16-7 assigned by Chapter 152, Tax Code.
16-8 Sec. 334.102. TAX AUTHORIZED. (a) A municipality by
16-9 ordinance or a county by order may impose a tax on the gross rental
16-10 receipts from the rental in the municipality or county of a motor
16-11 vehicle.
16-12 (b) A municipality by ordinance or a county by order may
16-13 repeal or decrease the rate of a tax imposed under Subsection (a).
16-14 (c) A municipality or county may impose a tax under this
16-15 subchapter only if:
16-16 (1) an approved community venue project is or is
16-17 planned to be located in the municipality or county; and
16-18 (2) the tax is approved at an election held under
16-19 Section 334.024.
16-20 Sec. 334.103. SHORT-TERM RENTAL TAX. (a) The tax
16-21 authorized by this subchapter is imposed at a rate in increments of
16-22 one-eighth of one percent, not to exceed 10 percent, on the gross
16-23 rental receipts from the rental in the municipality or county of a
16-24 motor vehicle.
16-25 (b) The ballot proposition at the election held to adopt the
17-1 tax must specify the maximum rate of the tax to be adopted.
17-2 Sec. 334.104. RATE INCREASE. (a) A municipality or county
17-3 that has adopted a tax under this subchapter at a rate of less than
17-4 10 percent may by ordinance or order increase the rate of the tax
17-5 to a maximum of 10 percent if the increase is approved by a
17-6 majority of the registered voters of that municipality or county
17-7 voting at an election called and held for that purpose.
17-8 (b) The ballot for an election to increase the rate of the
17-9 tax shall be printed to permit voting for or against the
17-10 proposition: "The increase of the motor vehicle rental tax for the
17-11 purpose of financing _____ (insert description of community venue
17-12 project) to a maximum rate of _______ percent (insert new maximum
17-13 rate not to exceed 10 percent)."
17-14 Sec. 334.105. COMPUTATION OF TAX. (a) The owner of a motor
17-15 vehicle subject to the tax imposed under this subchapter shall
17-16 collect the tax for the benefit of the municipality or county.
17-17 (b) The owner shall add the short-term motor vehicle rental
17-18 tax imposed by the municipality or county under this subchapter, if
17-19 applicable, and the gross rental receipts tax imposed by Chapter
17-20 152, Tax Code, to the rental charge, and the sum of the taxes is a
17-21 part of the rental charge, is a debt owed to the motor vehicle
17-22 owner by the person renting the vehicle, and is recoverable at law
17-23 in the same manner as the rental charge.
17-24 Sec. 334.106. CONSUMMATION OF RENTAL. A rental of a motor
17-25 vehicle occurs in the municipality or county in which transfer of
18-1 possession of the motor vehicle occurs.
18-2 Sec. 334.107. SHORT-TERM TAX INAPPLICABLE WHEN NO STATE TAX.
18-3 The tax authorized by this subchapter does not apply to the gross
18-4 receipts from the rental of a motor vehicle unless the tax imposed
18-5 by Chapter 152, Tax Code, also applies to the rental.
18-6 Sec. 334.108. EXEMPTIONS APPLICABLE. The exemptions
18-7 provided by Subchapter E, Chapter 152, Tax Code, apply to the tax
18-8 authorized by this subchapter.
18-9 Sec. 334.109. NOTICE OF TAX. Each bill or other receipt for
18-10 a rental subject to the tax imposed under this subchapter must
18-11 contain a statement in a conspicuous location stating: "_______
18-12 (insert name of taxing municipality or county) requires that an
18-13 additional tax of ____ percent (insert rate of tax) be imposed on
18-14 each motor vehicle rental for the purpose of financing a community
18-15 venue project."
18-16 Sec. 334.110. GROSS RECEIPTS PRESUMED SUBJECT TO TAX. All
18-17 gross receipts of an owner of a motor vehicle from the rental of
18-18 the motor vehicle are presumed to be subject to the tax imposed by
18-19 this subchapter except gross receipts for which the owner has
18-20 accepted in good faith a properly completed exemption certificate.
18-21 Sec. 334.111. RECORDS. (a) The owner of a motor vehicle
18-22 used for rental purposes shall keep for four years records and
18-23 supporting documents containing information on the amount of:
18-24 (1) gross rental receipts received from the rental of
18-25 the motor vehicle; and
19-1 (2) the tax imposed under this subchapter and paid to
19-2 the municipality or county on each motor vehicle used for rental
19-3 purposes by the owner.
19-4 (b) Mileage records are not required.
19-5 Sec. 334.112. FAILURE TO KEEP RECORDS. (a) An owner of a
19-6 motor vehicle commits an offense if the owner fails to make and
19-7 retain complete records for the four-year period required by
19-8 Section 334.111.
19-9 (b) An offense under this section is a misdemeanor
19-10 punishable by a fine of not less than $25 or more than $500.
19-11 Sec. 334.113. EFFECTIVE DATE AND ENDING DATE OF TAX. (a) A
19-12 tax imposed under this subchapter or a change in the tax rate takes
19-13 effect on the date prescribed by the ordinance or order imposing
19-14 the tax or changing the rate.
19-15 (b) A municipality or county may impose a tax under this
19-16 subchapter only if the municipality or county issues bonds or other
19-17 obligations under Section 334.043. The municipality or county may
19-18 impose the tax only while those bonds or other obligations are
19-19 outstanding and unpaid.
19-20 Sec. 334.114. TAX COLLECTION; PENALTY. (a) The owner of a
19-21 motor vehicle required to collect the tax imposed under this
19-22 subchapter shall report and send the taxes collected to the
19-23 municipality or county as provided by the ordinance or order
19-24 imposing the tax.
19-25 (b) A municipality by ordinance or a county by order may
20-1 prescribe penalties, including interest charges, for failure to
20-2 keep records required by the municipality or county, to report when
20-3 required, or to pay the tax when due.
20-4 (c) The attorney acting for the municipality or county may
20-5 bring suit against a person who fails to collect a tax under this
20-6 subchapter and to pay it over to the municipality or county as
20-7 required.
20-8 Sec. 334.115. COLLECTION PROCEDURES ON PURCHASE OF MOTOR
20-9 VEHICLE RENTAL BUSINESS. (a) If the owner of a motor vehicle
20-10 rental business that makes rentals subject to the tax imposed by
20-11 this subchapter sells the business, the successor to the seller or
20-12 the seller's assignee shall withhold an amount of the purchase
20-13 price sufficient to pay the amount of tax due until the seller
20-14 provides a receipt by a person designated by the municipality or
20-15 county to provide the receipt showing that the amount has been paid
20-16 or a certificate showing that no tax is due.
20-17 (b) The purchaser of a motor vehicle rental business who
20-18 fails to withhold an amount of the purchase price as required by
20-19 this section is liable for the amount required to be withheld to
20-20 the extent of the value of the purchase price.
20-21 (c) The purchaser of a motor vehicle rental business may
20-22 request that the person designated by the municipality or county to
20-23 provide a receipt under Subsection (a) issue a certificate stating
20-24 that no tax is due or issue a statement of the amount required to
20-25 be paid before a certificate may be issued. The person designated
21-1 by the municipality or county shall issue the certificate or
21-2 statement not later than the 60th day after the date the person
21-3 receives the request.
21-4 (d) If the person designated by the municipality or county
21-5 to provide a receipt under Subsection (a) fails to issue the
21-6 certificate or statement within the period provided by Subsection
21-7 (c), the purchaser is released from the obligation to withhold the
21-8 purchase price or pay the amount due.
21-9 Sec. 334.116. REIMBURSEMENT FOR TAX COLLECTION EXPENSES.
21-10 (a) A municipality by ordinance or a county by order may permit a
21-11 person who is required to collect a tax under this subchapter to
21-12 retain a percentage of the amount collected and required to be
21-13 reported as reimbursement to the person for the costs of collecting
21-14 the tax.
21-15 (b) A municipality or county may provide that the person may
21-16 retain the amount authorized by Subsection (a) only if the person
21-17 pays the tax and files reports as required by the municipality or
21-18 county.
21-19 Sec. 334.117. DEPOSIT OF TAX REVENUE. Revenue from the tax
21-20 imposed under this subchapter shall be deposited in the community
21-21 venue project fund of the municipality or county imposing the tax.
21-22 (Sections 334.118-334.150 reserved for expansion
21-23 SUBCHAPTER F. ADMISSIONS TAX
21-24 Sec. 334.151. TAX AUTHORIZED. (a) A municipality by
21-25 ordinance or a county by order may impose a tax on each person
22-1 admitted to an event at an approved community venue project in the
22-2 municipality or county for which the municipality or county has
22-3 issued bonds to plan, acquire, establish, develop, construct, or
22-4 renovate the approved community venue project.
22-5 (b) The municipality or county may not impose the tax under
22-6 this subchapter for admission to an event at a community venue that
22-7 is not an approved community venue project or for which the
22-8 municipality or county has not issued bonds to plan, acquire,
22-9 establish, develop, construct, or renovate the approved community
22-10 venue project.
22-11 (c) A municipality or county may impose a tax under this
22-12 subchapter only if:
22-13 (1) an approved community venue project is or will be
22-14 located in the municipality or county; and
22-15 (2) the tax is approved at an election held under
22-16 Section 334.024.
22-17 Sec. 334.152. TAX RATE. (a) The tax authorized by this
22-18 subchapter is imposed at the tax rate on each person admitted.
22-19 (b) The amount of the tax may be imposed at any uniform
22-20 monetary amount not to exceed $1. The tax may not be imposed at a
22-21 percentage rate.
22-22 (c) The ballot proposition at the election held to adopt the
22-23 tax must specify the maximum rate of the tax to be adopted.
22-24 (d) The municipality by ordinance or the county by order may
22-25 repeal or decrease the rate of the tax imposed under this
23-1 subchapter.
23-2 Sec. 334.153. RATE INCREASE. (a) A municipality or county
23-3 that has adopted a tax under this subchapter at a rate of less than
23-4 $1 a person may by ordinance or order increase the rate of the tax
23-5 to a maximum of $1 a person if the increase is approved by a
23-6 majority of the registered voters of that municipality or county
23-7 voting at an election called and held for that purpose.
23-8 (b) The ballot for an election to increase the rate of the
23-9 tax shall be printed to permit voting for or against the
23-10 proposition: "The increase of the admissions tax for the purpose
23-11 of financing _______ (insert description of community venue
23-12 project) to a maximum rate of ________ a day (insert new maximum
23-13 rate not to exceed $1)."
23-14 Sec. 334.154. COLLECTION. (a) The municipality by
23-15 ordinance or the county by order may require the owner or lessee of
23-16 an approved community venue project in the municipality or county
23-17 to collect the tax for the benefit of the municipality or county.
23-18 (b) An owner or lessee required to collect the tax under
23-19 this section shall add the tax to the admissions price, and the tax
23-20 is a part of the admissions price, is a debt owed to the owner or
23-21 lessee of the approved community venue project by the person
23-22 admitted, and is recoverable at law in the same manner as the
23-23 admissions charge.
23-24 (c) The tax imposed by this subchapter is not an occupation
23-25 tax imposed on the owner or lessee of the approved community venue
24-1 project.
24-2 Sec. 334.155. EFFECTIVE DATE AND ENDING DATE OF TAX. (a) A
24-3 tax imposed under this subchapter or a change in a tax rate takes
24-4 effect on the date prescribed by the ordinance or order imposing
24-5 the tax or changing the rate.
24-6 (b) A municipality or county may impose a tax under this
24-7 subchapter only if the municipality or county issues bonds or other
24-8 obligations under Section 334.043. The municipality or county may
24-9 impose the tax only while those bonds or other obligations are
24-10 outstanding and unpaid.
24-11 Sec. 334.156. COLLECTION OF TAX. (a) A person required to
24-12 collect a tax imposed under this subchapter shall report and send
24-13 the taxes collected to the municipality or county as provided by
24-14 the municipality or county imposing the tax.
24-15 (b) A municipality by ordinance or a county by order may
24-16 prescribe penalties, including interest charges, for failure to
24-17 keep records required by the municipality or county, to report when
24-18 required, or to pay the tax when due. The attorney acting for the
24-19 municipality or county may bring suit against a person who fails to
24-20 collect a tax under this subchapter and to pay it over to the
24-21 municipality or county as required.
24-22 (c) A municipality by ordinance or a county by order may
24-23 permit a person who is required to collect a tax under this
24-24 subchapter to retain a percentage of the amount collected and
24-25 required to be reported as reimbursement to the person for the
25-1 costs of collecting the tax. The municipality or county may
25-2 provide that the person may retain the amount only if the person
25-3 pays the tax and files reports as required by the municipality or
25-4 county.
25-5 Sec. 334.157. DEPOSIT OF TAX REVENUE. Revenue from the tax
25-6 imposed under this subchapter shall be deposited in the community
25-7 venue project fund of the municipality or county imposing the tax.
25-8 (Sections 334.158-334.200 reserved for expansion
25-9 SUBCHAPTER G. PARKING TAX
25-10 Sec. 334.201. EVENT PARKING TAX. (a) A municipality by
25-11 ordinance or a county by order may impose a tax on each motor
25-12 vehicle parking in a parking facility of an approved community
25-13 venue project.
25-14 (b) The municipality or county may impose the tax during a
25-15 period beginning not more than three hours before and ending not
25-16 more than three hours after the time an event in an approved
25-17 community venue project is scheduled to begin. The municipality or
25-18 county may not impose the tax under this subchapter during any
25-19 other time.
25-20 (c) A municipality or county may impose a tax under this
25-21 subchapter only if the tax is approved at an election held under
25-22 Section 334.024.
25-23 Sec. 334.202. TAX RATE. (a) The municipality by ordinance
25-24 or the county by order may provide that the tax is imposed at a
25-25 flat amount on each parked motor vehicle or is imposed as a
26-1 percentage of the amount charged for event parking by the owner of
26-2 the parking facility.
26-3 (b) Regardless of the method of imposition, the amount of
26-4 the tax may not exceed 50 cents for each motor vehicle.
26-5 (c) The ballot proposition at the election held to adopt the
26-6 tax must specify the maximum rate of the tax to be adopted.
26-7 (d) The municipality by ordinance or the county by order may
26-8 repeal or decrease the rate of the tax imposed under this section.
26-9 Sec. 334.203. RATE INCREASE. (a) A municipality or county
26-10 that has adopted a tax under this subchapter at a rate of less than
26-11 50 cents a vehicle may by ordinance or order increase the rate of
26-12 the tax to a maximum of 50 cents a vehicle if the increase is
26-13 approved by a majority of the registered voters of that
26-14 municipality or county voting at an election called and held for
26-15 that purpose.
26-16 (b) The ballot for an election to increase the rate of the
26-17 tax shall be printed to permit voting for or against the
26-18 proposition: "The increase of the parking tax for the purpose of
26-19 financing _______ (insert description of community venue project)
26-20 to a maximum rate of _______ (insert new maximum rate not to exceed
26-21 50 cents)."
26-22 Sec. 334.204. COLLECTION. (a) The municipality by
26-23 ordinance or the county by order may require the owner or lessee of
26-24 a parking facility to collect the tax for the benefit of the
26-25 municipality or county.
27-1 (b) An owner or lessee required to collect the tax under
27-2 this section shall add the tax to the parking charge, and the tax
27-3 is a part of the parking charge, is a debt owed to the parking
27-4 facility owner or lessee by the person parking, and is recoverable
27-5 at law in the same manner as the parking charge.
27-6 (c) The tax imposed by this subchapter is not an occupation
27-7 tax imposed on the owner or lessee of the parking facility.
27-8 Sec. 334.205. EFFECTIVE DATE AND ENDING DATE OF TAX. (a) A
27-9 tax imposed under this subchapter or a change in the tax rate takes
27-10 effect on the date prescribed by the ordinance or order imposing
27-11 the tax or changing the rate.
27-12 (b) A municipality or county may impose a tax under this
27-13 subchapter only if the municipality or county issues bonds or other
27-14 obligations under Section 334.043. The municipality or county may
27-15 impose the tax only while those bonds or other obligations are
27-16 outstanding and unpaid.
27-17 Sec. 334.206. COLLECTION OF TAX. (a) A person required to
27-18 collect a tax imposed under this subchapter shall report and send
27-19 the taxes collected to the municipality or county as provided by
27-20 the municipality or county imposing the tax.
27-21 (b) A municipality by ordinance or a county by order may
27-22 prescribe penalties, including interest charges, for failure to
27-23 keep records required by the municipality or county, to report when
27-24 required, or to pay the tax when due. The attorney acting for the
27-25 municipality or county may bring suit against a person who fails to
28-1 collect a tax under this subchapter and to pay it over to the
28-2 municipality or county as required.
28-3 (c) A municipality by ordinance or a county by order may
28-4 permit a person who is required to collect a tax under this
28-5 subchapter to retain a percentage of the amount collected and
28-6 required to be reported as reimbursement to the person for the
28-7 costs of collecting the tax. The municipality or county may
28-8 provide that the person may retain the amount only if the person
28-9 pays the tax and files reports as required by the municipality or
28-10 county.
28-11 Sec. 334.207. DEPOSIT OF TAX REVENUE. Revenue from the tax
28-12 imposed under this subchapter shall be deposited in the community
28-13 venue project fund of the municipality or county imposing the tax.
28-14 CHAPTER 335. COMMUNITY VENUE DISTRICTS
28-15 SUBCHAPTER A. GENERAL PROVISIONS
28-16 Sec. 335.001. DEFINITIONS. In this chapter:
28-17 (1) "Approved community venue project" has the meaning
28-18 assigned by Section 334.001, except that the approval of the
28-19 project must occur under this chapter.
28-20 (2) "Board" means the board of directors of a
28-21 community venue district.
28-22 (3) "District" means a community venue district
28-23 created under this chapter.
28-24 (4) "Related infrastructure" has the meaning assigned
28-25 by Section 334.001.
29-1 (5) "Community venue" has the meaning assigned by
29-2 Section 334.001.
29-3 (6) "Community venue project" has the meaning assigned
29-4 by Section 334.001, except that the actions described by that
29-5 section must occur under this chapter.
29-6 Sec. 335.002. APPLICATION OF CHAPTER. (a) Except as
29-7 provided by Subsection (b), this chapter applies only to:
29-8 (1) a county with a population of less than 1.5
29-9 million;
29-10 (2) a municipality located in a county described by
29-11 Subdivision (1);
29-12 (3) a county adjacent to a county described by
29-13 Subdivision (1); and
29-14 (4) a municipality located in a county described by
29-15 Subdivision (3).
29-16 (b) This chapter does not apply to a municipality with a
29-17 population of more than 500,000 that is situated in a county
29-18 bordering the United Mexican States and which has an athletic event
29-19 located within the municipality's boundaries.
29-20 Sec. 335.003. APPLICATION TO COMMUNITY VENUE CONSTRUCTED
29-21 UNDER OTHER LAW. A district may use this chapter for a community
29-22 venue project relating to a community venue and related
29-23 infrastructure planned, acquired, established, developed,
29-24 constructed, or renovated under other law, including Section 4B,
29-25 Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas
30-1 Civil Statutes), or Subchapter E, Chapter 451, Transportation Code.
30-2 Sec. 335.004. OTHER USES OF COMMUNITY VENUE PERMITTED. This
30-3 chapter does not prohibit the use of a community venue for an event
30-4 that is not related to sports or athletics, such as a
30-5 community-related event, including a rodeo, livestock show,
30-6 agricultural exposition, public school event, or other promotional
30-7 or entertainment event.
30-8 (Sections 335.005-335.020 reserved for expansion
30-9 SUBCHAPTER B. COMMUNITY VENUE DISTRICT
30-10 Sec. 335.021. CREATION. Two or more counties, two or more
30-11 municipalities, or one or more municipalities and one or more
30-12 counties may create a community venue district under this chapter
30-13 to plan, acquire, establish, develop, construct, or renovate one or
30-14 more community venue projects in the district subject to voter
30-15 approval under Subchapter D.
30-16 Sec. 335.022. ORDER CREATING DISTRICT. Two or more
30-17 counties, two or more municipalities, or one or more municipalities
30-18 and one or more counties may create a district under this chapter
30-19 by adopting concurrent orders. The concurrent orders must:
30-20 (1) contain identical provisions;
30-21 (2) define the boundaries of the district to be
30-22 coextensive with each creating political subdivision; and
30-23 (3) designate the number of directors and the manner
30-24 of appointment in accordance with Section 335.031.
30-25 Sec. 335.023. POLITICAL SUBDIVISION; OPEN MEETINGS. (a) A
31-1 district is a political subdivision of the creating political
31-2 subdivisions and of this state.
31-3 (b) A district is subject to Chapter 551, Government Code.
31-4 (Sections 335.024-335.030 reserved for expansion)
31-5 SUBCHAPTER C. BOARD OF DIRECTORS
31-6 Sec. 335.031. COMPOSITION AND APPOINTMENT OF BOARD. (a) A
31-7 district is governed by a board of at least four directors.
31-8 (b) The board is appointed by the governing body of the
31-9 political subdivisions that create the district. Each political
31-10 subdivision is entitled to an equal number of directors.
31-11 (c) Directors serve staggered two-year terms. A director
31-12 may be removed by the appointing political subdivision at any time
31-13 without cause. Successor directors are appointed in the same
31-14 manner as the original appointees.
31-15 (d) To qualify to serve as a director, a person must be a
31-16 resident of the appointing political subdivision. An employee,
31-17 officer, or member of the governing body of the appointing
31-18 political subdivision may serve as a director but may not have a
31-19 personal interest in a contract executed by the district other than
31-20 as an employee, officer, or member of the governing body of the
31-21 political subdivision.
31-22 Sec. 335.032. COMPENSATION. A board member is not entitled
31-23 to compensation but is entitled to reimbursement for actual and
31-24 necessary expenses.
31-25 Sec. 335.033. MEETINGS. The board shall conduct its
32-1 meetings in the district.
32-2 Sec. 335.034. OFFICERS. The board shall designate from the
32-3 members of the board a presiding officer, a secretary, and other
32-4 officers the board considers necessary.
32-5 (Sections 335.035-335.050 reserved for expansion
32-6 SUBCHAPTER D. COMMUNITY VENUE PROJECTS
32-7 Sec. 335.051. RESOLUTION AUTHORIZING PROJECT. (a) A
32-8 district by resolution may provide for the planning, acquisition,
32-9 establishment, development, construction, or renovation of a
32-10 community venue project if:
32-11 (1) the comptroller determines under Section 335.052
32-12 or 335.053 that the implementation of the resolution will not have
32-13 a negative fiscal impact on state revenue; and
32-14 (2) the resolution is approved by a majority of the
32-15 qualified voters of each political subdivision that created the
32-16 district voting at separate elections called and held for that
32-17 purpose under Section 335.054.
32-18 (b) The resolution must designate the community venue
32-19 project and each method of financing authorized by this chapter
32-20 that the district wants to use to finance the project. A
32-21 resolution may designate more than one method of financing.
32-22 Sec. 335.052. STATE FISCAL IMPACT ANALYSIS. (a) Before
32-23 calling an election on the resolution under Section 335.054, the
32-24 district shall send a copy of the resolution to the comptroller.
32-25 (b) Before the 15th day after the date the comptroller
33-1 receives the copy of the resolution, the comptroller shall:
33-2 (1) perform an analysis to determine if approval and
33-3 implementation of the resolution will have a negative fiscal impact
33-4 on state revenue; and
33-5 (2) provide to the district written notice of the
33-6 results of the analysis.
33-7 (c) If the comptroller does not complete the analysis and
33-8 provide the notice before the 15th day after the date the
33-9 comptroller receives the copy of the resolution, the comptroller is
33-10 considered to have determined that approval and implementation of
33-11 the resolution will not have a negative fiscal impact on state
33-12 revenue.
33-13 Sec. 335.053. APPEAL OF COMPTROLLER DETERMINATION. (a) If
33-14 the comptroller determines under Section 335.052 that
33-15 implementation of the resolution will have a negative fiscal impact
33-16 on state revenue, the district may:
33-17 (1) contest the finding by filing an appeal with the
33-18 comptroller not later than the 10th day after the date the district
33-19 receives the written notice under Section 335.052; or
33-20 (2) ask the comptroller to provide information on how
33-21 to change the resolution so that implementation will not have a
33-22 negative fiscal impact on state revenue.
33-23 (b) Before the 11th day after the date the comptroller
33-24 receives the appeal or request for information under Subsection
33-25 (a), the comptroller shall, as appropriate:
34-1 (1) perform a new analysis to determine if
34-2 implementation of the resolution will have a negative fiscal impact
34-3 on state revenue and provide to the district written notice of the
34-4 results of the analysis; or
34-5 (2) provide to the district written information on how
34-6 to change the resolution so that implementation will not have a
34-7 negative fiscal impact on state revenue.
34-8 (c) If the comptroller determines that implementation will
34-9 have a negative fiscal impact on state revenue, the written
34-10 analysis required under Subsection (b)(1) must include information
34-11 on how to change the resolution so that implementation will not
34-12 have a negative fiscal impact on state revenue.
34-13 (d) If the comptroller does not comply with Subsection (b)
34-14 before the 11th day after the date the comptroller receives the
34-15 appeal or request for information, the comptroller is considered to
34-16 have determined that approval and implementation of the resolution
34-17 will not have a negative fiscal impact on state revenue.
34-18 Sec. 335.054. ELECTION. (a) If the comptroller determines
34-19 under Section 335.052 or 335.053 that implementation of the
34-20 resolution will not have a negative fiscal impact on state revenue,
34-21 the board may order a separate election in each political
34-22 subdivision that created the district on the question of approving
34-23 and implementing the resolution. The elections shall be held on
34-24 the same day.
34-25 (b) The order calling the elections must:
35-1 (1) allow the voters to vote separately on each
35-2 community venue project;
35-3 (2) designate the community venue project;
35-4 (3) designate each method of financing authorized by
35-5 this chapter that the district wants to use to finance the project
35-6 and the maximum rate of each method; and
35-7 (4) allow the voters to vote, in the same proposition
35-8 or in separate propositions, on each method of financing authorized
35-9 by this chapter that the district wants to use to finance the
35-10 project and the maximum rate of each method.
35-11 (c) The ballot at the elections held under this section must
35-12 be printed to permit voting for or against the proposition:
35-13 "Authorizing _________ (insert name of district) to __________
35-14 (insert description of community venue project) and to impose a
35-15 __________ tax (insert type of tax) at the rate of ________ (insert
35-16 maximum rate) for the purpose of financing the community venue
35-17 project."
35-18 (d) If more than one method of financing is to be voted on
35-19 in one proposition, the ballot must be printed to permit voting for
35-20 or against the proposition: "Authorizing _________ (insert name of
35-21 district) to __________ (insert description of community venue
35-22 project) and to impose a __________ tax at the rate of ________
35-23 (insert each type of tax and the maximum rate of each tax) for the
35-24 purpose of financing the community venue project."
35-25 (e) If a majority of the votes cast at the election in each
36-1 creating political subdivision approves the proposition authorizing
36-2 the project, the district may implement the resolution. If a
36-3 majority of the votes cast in one or more of the creating political
36-4 subdivisions disapproves the proposition authorizing the project,
36-5 the district may not implement the resolution. If the project is
36-6 approved but one or more financing methods contained in separate
36-7 propositions are disapproved, the district may use only the
36-8 approved financing methods.
36-9 (f) The Election Code governs an election held under this
36-10 chapter, except that the uniform election date provisions of
36-11 Section 41.001(a), Election Code, do not apply to an election
36-12 ordered under this section.
36-13 (Sections 335.055-335.070 reserved for expansion
36-14 SUBCHAPTER E. POWERS AND DUTIES
36-15 Sec. 335.071. GENERAL POWERS OF DISTRICT. (a) A district
36-16 may:
36-17 (1) perform any act necessary to the full exercise of
36-18 the district's powers;
36-19 (2) accept a grant or loan from a:
36-20 (A) department or agency of the United States;
36-21 (B) department, agency, or political subdivision
36-22 of this state; or
36-23 (C) public or private person;
36-24 (3) acquire, sell, lease, convey, or otherwise dispose
36-25 of property or an interest in property, including an approved
37-1 community venue project, under terms and conditions determined by
37-2 the district;
37-3 (4) employ necessary personnel; and
37-4 (5) adopt rules to govern the operation of the
37-5 district and its employees and property.
37-6 (b) A district may contract with a public or private person,
37-7 including a sports team, club, organization, or other entity, to:
37-8 (1) plan, acquire, establish, develop, construct, or
37-9 renovate an approved community venue project; or
37-10 (2) perform any other act the district is authorized
37-11 to perform under this chapter.
37-12 (c) If the district contracts with a sports team or club for
37-13 the construction, renovation, or operation of an approved community
37-14 venue project, the district is not a party to a subsequent contract
37-15 between the team or club and another person relating to the
37-16 project. The competitive bidding laws, including Chapter 271, do
37-17 not apply to a contract between a team or club and another person
37-18 under this subsection.
37-19 (d) A district may impose any tax a county may impose under
37-20 Chapter 334, subject to approval of the voters of the district as
37-21 prescribed by this chapter and Chapter 334. The district shall
37-22 impose the tax in the same manner as a county.
37-23 (e) A district may not levy an ad valorem tax.
37-24 Sec. 335.072. COMMUNITY VENUE PROJECT FUND. (a) A district
37-25 in which an approved community venue project is located shall
38-1 establish by resolution a fund known as the community venue project
38-2 fund.
38-3 (b) The district shall deposit into the community venue
38-4 project fund:
38-5 (1) the proceeds from any tax imposed by the district;
38-6 (2) all revenue from the sale of bonds or other
38-7 obligations by the district;
38-8 (3) money received under Section 335.075 from a
38-9 municipality that created the district; and
38-10 (4) any other money required by law to be deposited in
38-11 the fund.
38-12 (c) The district may deposit into the community venue
38-13 project fund:
38-14 (1) money derived from innovative funding concepts
38-15 such as the sale or lease of luxury boxes or the sale of licenses
38-16 for personal seats; and
38-17 (2) any other revenue derived from the approved
38-18 community venue project, including stadium rental payments and
38-19 revenue from concessions and parking.
38-20 (d) The district may use money in the community venue
38-21 project fund only to:
38-22 (1) pay the costs of planning, acquiring,
38-23 establishing, developing, constructing, or renovating one or more
38-24 approved community venue projects in the district;
38-25 (2) pay the principal of, interest on, and other costs
39-1 relating to bonds or other obligations issued by the district or to
39-2 refund bonds or other obligations; or
39-3 (3) pay the costs of operating or maintaining one or
39-4 more approved community venue projects during the planning,
39-5 acquisition, establishment, development, construction, or
39-6 renovation or while bonds or other obligations for the planning,
39-7 acquisition, establishment, development, construction, or
39-8 renovation are outstanding.
39-9 (e) Money deposited into the community venue project fund,
39-10 including money deposited under Subsection (c), is the property of
39-11 the district depositing the money.
39-12 Sec. 335.073. BONDS AND OTHER OBLIGATIONS. (a) A district
39-13 in which an approved community venue project is located may issue
39-14 bonds, including revenue bonds and refunding bonds, or other
39-15 obligations to pay the costs of the approved community venue
39-16 project.
39-17 (b) The bonds or other obligations and the proceedings
39-18 authorizing the bonds or other obligations shall be submitted to
39-19 the attorney general for review and approval as required by Article
39-20 3, Chapter 53, Acts of the 70th Legislature, 2nd Called Session,
39-21 1987 (Article 717k-8, Vernon's Texas Civil Statutes).
39-22 (c) The bonds or other obligations must be payable from and
39-23 secured by the revenue in the community venue project fund.
39-24 (d) The bonds or other obligations may mature serially or
39-25 otherwise not more than 30 years from their date of issuance.
40-1 (e) The bonds or other obligations are not a debt of and do
40-2 not create a claim for payment against the revenue or property of
40-3 the district other than an approved community venue project for
40-4 which the bonds are issued.
40-5 Sec. 335.074. PUBLIC PURPOSE OF PROJECT. (a) The
40-6 legislature finds for all constitutional and statutory purposes
40-7 that an approved community venue project is owned, used, and held
40-8 for public purposes by the district.
40-9 (b) Section 25.07(a), Tax Code, does not apply to a
40-10 leasehold or other possessory interest granted by the district
40-11 while the district owns the project.
40-12 (c) The project is exempt from taxation under Section 11.11,
40-13 Tax Code, while the district owns the project.
40-14 Sec. 335.075. DEDICATION OR GRANT OF CERTAIN REVENUE BY
40-15 CREATING MUNICIPALITY. (a) A municipality that created the
40-16 district may contribute or dedicate to the district municipal
40-17 sales and use tax revenue received by the municipality that is
40-18 generated, paid, or collected by any or all businesses operating in
40-19 an approved community venue project.
40-20 (b) The municipality may contribute or dedicate money under
40-21 this section only if the municipality determines that the approved
40-22 community venue project from which the revenue was derived will
40-23 contribute to the economic, cultural, or recreational development
40-24 or well-being of the residents of the municipality.
40-25 SECTION 2. Subtitle C, Title 3, Tax Code, is amended by
41-1 adding Chapter 326 to read as follows:
41-2 CHAPTER 326. MUNICIPAL TAX ON RENTAL OF MOTOR VEHICLE
41-3 SUBCHAPTER A. GENERAL PROVISIONS
41-4 Sec. 326.001. DEFINITIONS. (a) In this chapter:
41-5 (1) "Athletic event" means a postseason
41-6 intercollegiate athletic football bowl game for which a fee for
41-7 admission to one or more sports or athletic events is charged.
41-8 (2) "Auto rental tax fund" means the fund established
41-9 by a municipality by resolution for the deposit of the tax revenue
41-10 collected under this chapter.
41-11 (3) "Motor vehicle" means a self-propelled vehicle
41-12 designed principally to transport persons or property on a public
41-13 roadway and includes a passenger car, van, station wagon, sport
41-14 utility vehicle, and truck. The term does not include a:
41-15 (A) trailer, semitrailer, house trailer, truck
41-16 having a manufacturer's rating of more than one-half ton, or
41-17 road-building machine;
41-18 (B) device moved only by human power;
41-19 (C) device used exclusively on stationary rails
41-20 or tracks;
41-21 (D) farm machine; or
41-22 (E) mobile office.
41-23 (4) "Place of business of the owner" means an
41-24 established outlet, office, or location operated by the owner of a
41-25 motor vehicle or the owner's agent or employee for the purpose of
42-1 renting motor vehicles and includes any location at which three or
42-2 more rentals are made during a year.
42-3 (5) "Rental" means an agreement by the owner of a
42-4 motor vehicle to authorize for not longer than 30 days the
42-5 exclusive use of that vehicle to another for consideration.
42-6 (b) Except as provided by Subsection (a), words used in this
42-7 subchapter and defined by Chapter 152 have the meanings assigned by
42-8 Chapter 152.
42-9 Sec. 326.002. APPLICATION OF CHAPTER. This chapter applies
42-10 only to a municipality with a population of more than 500,000 that
42-11 is situated in a county bordering the United Mexican States and
42-12 which has an athletic event located within the municipality's
42-13 boundaries.
42-14 (Sections 326.003-326.100 reserved for expansion
42-15 SUBCHAPTER B. IMPOSITION OF GROSS RENTAL RECEIPTS TAX BY
42-16 MUNICIPALITY
42-17 Sec. 326.101. TAX AUTHORIZED. (a) A municipality by
42-18 ordinance may impose a tax on the gross rental receipts from the
42-19 rental in the municipality of a motor vehicle.
42-20 (b) A municipality by ordinance may repeal or decrease the
42-21 rate of a tax imposed under Subsection (a).
42-22 (c) A municipality may impose a tax under this chapter only
42-23 if the tax is approved at an election held under Section 326.102.
42-24 Sec. 326.102. ELECTION. (a) An election under this chapter
42-25 is called by the adoption of a resolution by the governing body of
43-1 a municipality.
43-2 (b) The governing body may call the election by a majority
43-3 vote of its members.
43-4 (c) The ballot at the election held under this section must
43-5 be printed to permit voting for or against the proposition:
43-6 "Authorizing ________ (insert name of municipality) to
43-7 establish an auto rental tax fund and to impose a tax on the gross
43-8 rental receipts from the rental of a motor vehicle at the rate of
43-9 _________ (insert the maximum rate of the tax) for the purpose of
43-10 financing athletic events."
43-11 (d) The Election Code governs an election held under this
43-12 chapter, except that the uniform election date provisions of
43-13 Section 41.001(a), Election Code, do not apply to an election
43-14 ordered under this section.
43-15 Sec. 326.103. SHORT-TERM RENTAL TAX. (a) The tax
43-16 authorized by this chapter is imposed at a rate in increments of
43-17 one-eighth of one percent, not to exceed 10 percent, on the gross
43-18 rental receipts from the rental in the municipality of a motor
43-19 vehicle.
43-20 (b) The ballot proposition at the election held to adopt the
43-21 tax must specify the maximum rate of the tax to be adopted.
43-22 Sec. 326.104. RATE INCREASE. (a) A municipality that has
43-23 adopted a tax under this chapter at a rate of less than 10 percent
43-24 may by ordinance increase the rate of the tax to a maximum of 10
43-25 percent if the increase is approved by a majority of the registered
44-1 voters of that municipality voting at an election called and held
44-2 for that purpose.
44-3 (b) The ballot for an election to increase the rate of the
44-4 tax shall be printed to permit voting for or against the
44-5 proposition: "The increase of the motor vehicle rental tax for the
44-6 purpose of financing athletic events to a maximum rate of ________
44-7 percent (insert new maximum rate not to exceed 10 percent)."
44-8 (Sections 326.105-326.200 reserved for expansion
44-9 SUBCHAPTER C. USE OF TAX REVENUE
44-10 Sec. 326.201. AUTO RENTAL TAX FUND. (a) A municipality
44-11 shall establish by resolution a fund known as the auto rental tax
44-12 fund.
44-13 (b) The municipality shall deposit into the auto rental tax
44-14 fund the proceeds of any tax imposed by the municipality under this
44-15 chapter.
44-16 (c) The municipality may use money in the auto rental tax
44-17 fund only to collect the tax imposed by this chapter and to operate
44-18 one or more athletic events, including but not limited to paying
44-19 the costs of planning, acquiring, establishing, developing,
44-20 advertising, promoting, conducting, sponsoring, or otherwise
44-21 supporting such an event.
44-22 (Sections 326.202-326.300 reserved for expansion
44-23 SUBCHAPTER D. COMPUTATION OF TAX
44-24 Sec. 326.301. COMPUTATION OF TAX. (a) The owner of a motor
44-25 vehicle subject to the tax imposed under this chapter shall collect
45-1 the tax for the benefit of the municipality.
45-2 (b) The owner shall add the short-term motor vehicle rental
45-3 tax imposed by the municipality under this chapter, if applicable,
45-4 and the gross rental receipts tax imposed by Chapter 152 to the
45-5 rental charge, and the sum of the taxes is a part of the rental
45-6 charge, is a debt owed to the motor vehicle owner by the person
45-7 renting the vehicle, and is recoverable at law in the same manner
45-8 as the rental charge.
45-9 Sec. 326.302. CONSUMMATION OF RENTAL. A rental of a motor
45-10 vehicle occurs in the municipality in which transfer of possession
45-11 of the motor vehicle occurs.
45-12 Sec. 326.303. SHORT-TERM TAX INAPPLICABLE WHEN NO STATE TAX.
45-13 The tax authorized by this chapter does not apply to the gross
45-14 receipts from the rental of a motor vehicle unless the tax imposed
45-15 by Chapter 152 also applies to the rental.
45-16 Sec. 326.304. STATE EXEMPTIONS APPLICABLE. The exemptions
45-17 provided by Subchapter E, Chapter 152, apply to the tax authorized
45-18 by this chapter.
45-19 Sec. 326.305. GROSS RECEIPTS PRESUMED SUBJECT TO TAX. All
45-20 gross receipts of an owner of a motor vehicle from the rental of
45-21 the motor vehicle are presumed to be subject to the tax imposed by
45-22 this chapter, except for gross receipts for which the owner has
45-23 accepted in good faith a properly completed exemption certificate.
46-1 (Sections 326.306-326.400 reserved for expansion
46-2 SUBCHAPTER E. ADMINISTRATION OF TAX
46-3 Sec. 326.401. RECORDS. (a) The owner of a motor vehicle
46-4 used for rental purposes shall keep for four years records and
46-5 supporting documents containing the amount of the:
46-6 (1) gross rental receipts received from the rental of
46-7 the motor vehicle; and
46-8 (2) tax imposed under this chapter and paid to the
46-9 municipality on each motor vehicle used for rental purposes by the
46-10 owner.
46-11 (b) Mileage records are not required.
46-12 Sec. 326.402. FAILURE TO KEEP RECORDS. (a) An owner of a
46-13 motor vehicle commits an offense if the owner fails to make and
46-14 retain complete records for the four-year period required by
46-15 Section 326.401.
46-16 (b) An offense under this section is a misdemeanor
46-17 punishable by a fine of not less than $25 or more than $500.
46-18 Sec. 326.403. EFFECTIVE DATE OF TAX. A tax imposed under
46-19 this chapter or a change in the tax rate takes effect on the date
46-20 prescribed by the ordinance imposing the tax or changing the rate.
46-21 Sec. 326.404. TAX COLLECTION; PENALTY. (a) The owner of a
46-22 motor vehicle required to collect the tax imposed under this
46-23 chapter shall report and send the taxes collected to the
46-24 municipality as provided by the ordinance imposing the tax.
46-25 (b) A municipality by ordinance may prescribe penalties,
47-1 including interest charges, for failure to keep records required by
47-2 the municipality, to report when required, or to pay the tax when
47-3 due.
47-4 (c) The attorney acting for the municipality may bring suit
47-5 against a person who fails to collect a tax under this chapter and
47-6 to pay it over to the municipality as required.
47-7 Sec. 326.405. COLLECTION PROCEDURES ON PURCHASE OF MOTOR
47-8 VEHICLE RENTAL BUSINESS. (a) If the owner of a motor vehicle
47-9 rental business that makes rentals subject to the tax imposed by
47-10 this chapter sells the business, the successor to the seller or the
47-11 seller's assignee shall withhold an amount of the purchase price
47-12 sufficient to pay the amount of tax due until the seller provides a
47-13 receipt by a person designated by the municipality to provide the
47-14 receipt showing that the amount has been paid or a certificate
47-15 showing that no tax is due.
47-16 (b) The purchaser of a motor vehicle rental business who
47-17 fails to withhold an amount of the purchase price as required by
47-18 this section is liable for the amount required to be withheld to
47-19 the extent of the value of the purchase price.
47-20 (c) The purchaser of a motor vehicle rental business may
47-21 request that the person designated by the municipality to provide a
47-22 receipt under Subsection (a) issue a certificate stating that no
47-23 tax is due or issue a statement of the amount required to be paid
47-24 before a certificate may be issued. The person designated by the
47-25 municipality shall issue the certificate or statement not later
48-1 than the 60th day after the date the person receives the request.
48-2 (d) If the person designated by the municipality to provide
48-3 a receipt under Subsection (a) fails to issue the certificate or
48-4 statement within the period provided by Subsection (c), the
48-5 purchaser is released from the obligation to withhold the purchase
48-6 price or pay the amount due.
48-7 Sec. 326.406. REIMBURSEMENT FOR TAX COLLECTION EXPENSES.
48-8 (a) A municipality by ordinance or a county by order may permit a
48-9 person who is required to collect a tax under this subchapter to
48-10 retain a percentage of the amount collected and required to be
48-11 reported as reimbursement to the person for the costs of collecting
48-12 the tax.
48-13 (b) A municipality or county may provide that the person may
48-14 retain the amount authorized by Subsection (a) only if the person
48-15 pays the tax and files reports as required by the municipality or
48-16 county.
48-17 SECTION 3. The importance of this legislation and the
48-18 crowded condition of the calendars in both houses create an
48-19 emergency and an imperative public necessity that the
48-20 constitutional rule requiring bills to be read on three several
48-21 days in each house be suspended, and this rule is hereby suspended,
48-22 and that this Act take effect and be in force from and after its
48-23 passage, and it is so enacted.