By Christian H.B. No. 3851
76R12866 CBH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the authority of certain municipalities to impose a
1-3 sales and use tax to retire the debt of a municipal power agency
1-4 created by the municipalities.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Subchapter D, Chapter 163, Utilities Code, is
1-7 amended by adding Section 163.103 to read as follows:
1-8 Sec. 163.103. AUTHORITY TO IMPOSE SALES AND USE TAX. (a)
1-9 Except to the extent that a provision of this section applies,
1-10 Chapter 321, Tax Code, applies to the tax authorized by this
1-11 section in the same manner as that chapter applies to the tax
1-12 authorized by that chapter. Section 321.101(f), Tax Code, does not
1-13 apply to the tax authorized by this section.
1-14 (b) A municipality that participates in a municipal power
1-15 agency created under this subchapter may adopt or abolish the sales
1-16 and use tax authorized by this section at an election held in the
1-17 municipality. The rate of the tax authorized by this section is
1-18 one-half percent.
1-19 (c) The adoption or abolition of the tax takes effect on the
1-20 first day of the first calendar quarter occurring after the
1-21 expiration of the first complete calendar quarter occurring after
1-22 the date the comptroller receives a notice of the results of the
1-23 election. If the comptroller determines that an effective date
1-24 provided by this subsection will occur before the comptroller can
2-1 reasonably take the action required to begin collecting the tax or
2-2 to implement the abolition of the tax, the effective date may be
2-3 extended by the comptroller until the first day of the next
2-4 succeeding calendar quarter.
2-5 (d) An election to adopt or abolish the tax authorized by
2-6 this section is called by the adoption of an order by the governing
2-7 body of the municipality. The governing body shall call an
2-8 election if a number of qualified voters of the municipality equal
2-9 to at least five percent of the number of registered voters in the
2-10 municipality petitions the governing body to call the election.
2-11 (e) At an election to adopt the tax, the ballot shall be
2-12 prepared to permit voting for or against the proposition: "The
2-13 adoption of a sales and use tax in _________(name of municipality)
2-14 at the rate of one-half percent to provide revenue to retire the
2-15 municipality's share of the bonded indebtedness of the ______(name
2-16 of agency) municipal power agency."
2-17 (f) At an election to abolish the tax, the ballot shall be
2-18 prepared to permit voting for or against the proposition: "The
2-19 abolition of the sales and use tax in _________(name of
2-20 municipality) used to retire the municipality's share of the bonded
2-21 indebtedness of the ______(name of agency) municipal power agency."
2-22 (g) Revenue from the tax imposed under this section may be
2-23 used only to retire the municipality's share of the bonded
2-24 indebtedness, on September 1, 1999, of the municipal power agency
2-25 in which the municipality participates. If the municipal power
2-26 agency has not determined a municipality's share of the bonded
2-27 indebtedness on or before September 1, 1999, the municipality's
3-1 share of the debt shall be determined in accordance with the ratio
3-2 that the population of the municipality bears to the total
3-3 population of all participating public entities.
3-4 (h) A sales and use tax imposed under this section may not
3-5 be collected after the last day of the first calendar quarter
3-6 occurring after the earlier of:
3-7 (1) the 10th anniversary of the date the municipality
3-8 began collecting the tax; or
3-9 (2) the date the municipality notifies the comptroller
3-10 that the municipality has abolished the tax or that the
3-11 municipality's share of the bonded indebtedness has been paid in
3-12 full or the full amount of money, excluding guaranteed interest,
3-13 necessary to pay in full the municipality's share of the bonded
3-14 indebtedness has been set aside in a trust account dedicated to the
3-15 payment of the bonds.
3-16 (i) The municipality shall notify the comptroller of the
3-17 expiration of the tax not later than the 60th day before the
3-18 expiration date.
3-19 SECTION 2. This Act takes effect September 1, 1999.
3-20 SECTION 3. The importance of this legislation and the
3-21 crowded condition of the calendars in both houses create an
3-22 emergency and an imperative public necessity that the
3-23 constitutional rule requiring bills to be read on three several
3-24 days in each house be suspended, and this rule is hereby suspended.