By Brown S.B. No. 683
76R4825 CBH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the authority of certain municipalities and counties to
1-3 impose a sales and use tax to fund venue projects.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Sections 334.085(b) and (b-1), Local Government
1-6 Code, are amended to read as follows:
1-7 (b) Except as provided by Subsection (b-1) and Section
1-8 334.0855, if a municipality or county is included within the
1-9 boundaries of another taxing authority and the adoption or increase
1-10 of the tax under this subchapter would result in a combined tax
1-11 rate of more than two percent in any location in the municipality
1-12 or county, the election to approve or increase the tax under this
1-13 chapter is to be treated for all purposes as an election to reduce
1-14 the tax rate of the other taxing authority [(except a rapid transit
1-15 authority created under Chapter 451, Transportation Code)] to the
1-16 highest rate that will not result in a combined tax rate of more
1-17 than two percent in any location in the municipality or county. If
1-18 the municipality or county is located within the boundaries of only
1-19 one taxing authority, and the adoption or increase of the tax under
1-20 this subchapter will result in a decrease of the tax rate of the
1-21 taxing authority, the ballot at an election to impose or increase
1-22 the tax must clearly state that the adoption or increase of the tax
1-23 will result in a reduction of the tax rate of the taxing authority.
1-24 If the municipality or county is included within the boundaries of
2-1 more than one taxing authority, the election to impose or increase
2-2 the tax under this subchapter must allow the voters to choose which
2-3 taxing authority's tax will be reduced.
2-4 (b-1) If the voters choose reduction of the tax collected by
2-5 a rapid transit authority created under Chapter 451, Transportation
2-6 Code, and imposition of the tax authorized under this section would
2-7 result in a reduction of the rapid transit authority's tax rate to
2-8 the highest rate that will not result in a combined tax rate of
2-9 more than two percent in any location in the municipality or
2-10 county, an election must be held [pursuant to Subchapter M, Chapter
2-11 451, Transportation Code, as applicable for the type of authority
2-12 involved,] on the question of withdrawing the affected
2-13 municipalities from the authority prior to imposition of the tax
2-14 authorized in this section. An affected municipality in which
2-15 Subchapter M, Chapter 451, Transportation Code, applies by its own
2-16 terms shall hold the election in accordance with the applicable
2-17 provisions of that subchapter. An affected municipality in which
2-18 Subchapter M, Chapter 451, Transportation Code, does not apply by
2-19 its own terms shall hold the election in accordance with Section
2-20 451.617, Transportation Code. If withdrawal is not authorized, the
2-21 tax may not be imposed unless authorized pursuant to subsequent
2-22 election(s). Upon withdrawal of each affected municipality from
2-23 the authority (if withdrawal is authorized), the obligation to
2-24 provide service (including service to persons with disabilities)
2-25 shall be discontinued for that municipality except as required
2-26 under applicable federal law. In all other respects, the
2-27 provisions of Subchapter M, Chapter 451, Transportation Code,
3-1 governing withdrawal procedures and obligations of municipalities
3-2 upon withdrawal shall apply.
3-3 SECTION 2. The importance of this legislation and the
3-4 crowded condition of the calendars in both houses create an
3-5 emergency and an imperative public necessity that the
3-6 constitutional rule requiring bills to be read on three several
3-7 days in each house be suspended, and this rule is hereby suspended,
3-8 and that this Act take effect and be in force from and after its
3-9 passage, and it is so enacted.