By: Ogden S.B. No. 1511
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the creation of a county assistance district in certain
1-2 counties in which a rapid transit or regional transportation
1-3 authority is located; authorizing a sales and use tax.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subtitle B, Title 12, Local Government Code, is
1-6 amended by adding Chapter 384 to read as follows:
1-7 CHAPTER 384. COUNTY ASSISTANCE DISTRICT
1-8 Sec. 384.001. DEFINITION. In this chapter, "district" means
1-9 a county assistance district created under this chapter.
1-10 Sec. 384.002. APPLICABILITY. This chapter applies only to a
1-11 county that has a population of less than 45,000 and any portion of
1-12 which is included in an authority governed by Chapter 451 or 452,
1-13 Transportation Code.
1-14 Sec. 384.003. CREATION AND FUNCTIONS OF DISTRICT. (a) The
1-15 commissioners court of the county may call an election on the
1-16 question of creating a county assistance district under this
1-17 chapter to perform the following functions in the district:
1-18 (1) the construction, maintenance, or improvement of
1-19 roads or highways;
1-20 (2) the provision of law enforcement and detention
1-21 services;
1-22 (3) the maintenance or improvement of libraries,
1-23 museums, parks, or other recreational facilities; or
1-24 (4) the provision of services that benefit the public
2-1 health or welfare.
2-2 (b) The order calling the election must:
2-3 (1) define the boundaries of the district to include
2-4 any portion of the county that is not located in an authority
2-5 governed by Chapter 451 or 452, Transportation Code; and
2-6 (2) call for the election to be held within those
2-7 boundaries.
2-8 (c) The ballot at the election must be printed to permit
2-9 voting for or against the proposition: "Authorizing the creation
2-10 of the ____ County Assistance District (insert name of district)
2-11 and the imposition of a sales and use tax at the rate of ____ of
2-12 one percent (insert one-eighth, one-fourth, three-eighths, or
2-13 one-half, as appropriate) for the purpose of financing the
2-14 operations of the district."
2-15 (d) The district is created if a majority of the votes
2-16 received at the election favor the creation of the district.
2-17 (e) If a majority of the votes received at the election are
2-18 against the creation of the district, another election on the
2-19 question of creating a county assistance district may not be held
2-20 in the county before the first anniversary of the most recent
2-21 election concerning the creation of a district.
2-22 (f) The commissioners court may call an election to be held
2-23 in an area of the county that is not located in a district created
2-24 under this section to determine whether the area should be included
2-25 in the district and whether the district's sales and use tax should
2-26 be imposed in the area. An election may not be held in an area
3-1 that is included in an authority governed by Chapter 451 or 452,
3-2 Transportation Code. The area is included in the district and the
3-3 sales and use tax is imposed if a majority of the votes received at
3-4 the election favor inclusion in the district and imposition of the
3-5 sales and use tax.
3-6 Sec. 384.004. POLITICAL SUBDIVISION. A district is a
3-7 political subdivision of this state.
3-8 Sec. 384.005. GOVERNING BODY. (a) The commissioners court
3-9 of the county in which the district is created is the governing
3-10 body of the district.
3-11 (b) A member of the commissioners court is not entitled to
3-12 compensation for service on the governing body of the district but
3-13 is entitled to reimbursement for actual and necessary expenses.
3-14 Sec. 384.006. GENERAL POWERS OF DISTRICT. (a) A district
3-15 may:
3-16 (1) perform any act necessary to the full exercise of
3-17 the district's functions;
3-18 (2) accept a grant or loan from:
3-19 (A) the United States;
3-20 (B) an agency or political subdivision of this
3-21 state; or
3-22 (C) a public or private person;
3-23 (3) acquire, sell, lease, convey, or otherwise dispose
3-24 of property or an interest in property under terms determined by
3-25 the district;
3-26 (4) employ necessary personnel; and
4-1 (5) adopt rules to govern the operation of the
4-2 district and its employees and property.
4-3 (b) A district may contract with a public or private person
4-4 to perform any act the district is authorized to perform under this
4-5 chapter.
4-6 (c) A district may not levy an ad valorem tax.
4-7 Sec. 384.007. SALES AND USE TAX. (a) A district by order
4-8 may impose a sales and use tax under this chapter to finance the
4-9 operations of the district only if the tax is approved at an
4-10 election held under Section 384.003.
4-11 (b) A district may not adopt a sales and use tax under this
4-12 chapter if the adoption of the tax would result in a combined tax
4-13 rate of all local sales and use taxes of more than two percent in
4-14 any location in the district.
4-15 Sec. 384.008. TAX CODE APPLICABLE. (a) Chapter 323, Tax
4-16 Code, governs the imposition, computation, administration,
4-17 collection, and remittance of a tax authorized under this chapter
4-18 except as inconsistent with this chapter.
4-19 (b) Section 323.101(b), Tax Code, does not apply to a tax
4-20 authorized by this chapter.
4-21 Sec. 384.009. TAX RATE. The rate of a tax adopted under
4-22 this chapter must be one-eighth, one-fourth, three-eighths, or
4-23 one-half of one percent.
4-24 Sec. 384.010. REPEAL OR RATE CHANGE. (a) A district that
4-25 has adopted a sales and use tax under this chapter may, by order
4-26 and subject to Section 384.007(b), change the rate of the tax or
5-1 repeal the tax if the change or repeal is approved by a majority of
5-2 the votes received in the district at an election held for that
5-3 purpose.
5-4 (b) The tax may be changed under Subsection (a) in one or
5-5 more increments of one-eighth of one percent to a maximum of
5-6 one-half of one percent.
5-7 (c) The ballot for an election to change the tax shall be
5-8 printed to permit voting for or against the proposition: "The
5-9 change of a sales and use tax for the ____ county assistance
5-10 district (insert name of district) from the rate of ____ of one
5-11 percent (insert one-fourth, three-eighths, or one-half, as
5-12 appropriate) to the rate of ____ of one percent (insert one-fourth,
5-13 three-eighths, or one-half, as appropriate)."
5-14 (d) The ballot for the election to repeal the tax shall be
5-15 printed to permit voting for or against the proposition: "The
5-16 repeal of the sales and use tax for financing the __________ County
5-17 Assistance District (insert name of district)."
5-18 Sec. 384.011. IMPOSITION OF TAX. (a) If the district
5-19 adopts the tax, a tax is imposed on the receipts from the sale at
5-20 retail of taxable items in the district at the rate approved at the
5-21 election.
5-22 (b) There is also imposed an excise tax on the use, storage,
5-23 or other consumption in the district of tangible personal property
5-24 purchased, leased, or rented from a retailer during the period that
5-25 the tax is effective in the district. The rate of the excise tax
5-26 is the same as the rate of the sales tax portion of the tax and is
6-1 applied to the sale price of the tangible personal property.
6-2 Sec. 384.012. EFFECTIVE DATE OF TAX. The adoption of the
6-3 tax, the change of the tax rate, or the repeal of the tax takes
6-4 effect on the first day of the first calendar quarter occurring
6-5 after the expiration of the first complete quarter occurring after
6-6 the date the comptroller receives a notice of the results of the
6-7 election adopting, changing, or repealing the tax.
6-8 SECTION 2. The importance of this legislation and the
6-9 crowded condition of the calendars in both houses create an
6-10 emergency and an imperative public necessity that the
6-11 constitutional rule requiring bills to be read on three several
6-12 days in each house be suspended, and this rule is hereby suspended,
6-13 and that this Act take effect and be in force from and after its
6-14 passage, and it is so enacted.