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.