By: Nixon S.B. No. 1876
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the authority of certain municipalities to impose a
1-2 sales and use tax to retire the debt of a municipal power agency
1-3 created by the municipalities.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter D, Chapter 163, Utilities Code, is
1-6 amended by adding Section 163.103 to read as follows:
1-7 Sec. 163.103. AUTHORITY TO IMPOSE SALES AND USE TAX.
1-8 (a) Except to the extent that a provision of this section applies,
1-9 Chapter 321, Tax Code, applies to the tax authorized by this
1-10 section in the same manner as that chapter applies to the tax
1-11 authorized by that chapter. Section 321.101(f), Tax Code, does not
1-12 apply to the tax authorized by this section; provided, however,
1-13 that Section 321.101(f), Tax Code, does apply to a municipality the
1-14 electric utility of which has between 30,000 and 50,000 meter
1-15 connections.
1-16 (b) A municipality that participates in a municipal power
1-17 agency created under this subchapter may adopt or abolish the sales
1-18 and use tax authorized by this section at an election held in the
1-19 municipality. The rate of the tax authorized by this section is
1-20 one-half percent.
1-21 (c) The adoption or abolition of the tax takes effect on the
1-22 first day of the first calendar quarter occurring after the
1-23 expiration of the first complete calendar quarter occurring after
1-24 the date the comptroller receives a notice of the results of the
2-1 election. If the comptroller determines that an effective date
2-2 provided by this subsection will occur before the comptroller can
2-3 reasonably take the action required to begin collecting the tax or
2-4 to implement the abolition of the tax, the effective date may be
2-5 extended by the comptroller until the first day of the next
2-6 succeeding calendar quarter.
2-7 (d) An election to adopt or abolish the tax authorized by
2-8 this section is called by the adoption of an order by the governing
2-9 body of the municipality. The governing body shall call an
2-10 election if a number of qualified voters of the municipality equal
2-11 to at least five percent of the number of registered voters in the
2-12 municipality petitions the governing body to call the election.
2-13 (e) At an election to adopt the tax, the ballot shall be
2-14 prepared to permit voting for or against the proposition: "The
2-15 adoption of a sales and use tax in _________(name of municipality)
2-16 at the rate of one-half percent to provide revenue to retire the
2-17 municipality's share of the bonded indebtedness of the ______(name
2-18 of agency) municipal power agency."
2-19 (f) At an election to abolish the tax, the ballot shall be
2-20 prepared to permit voting for or against the proposition: "The
2-21 abolition of the sales and use tax in _________(name of
2-22 municipality) used to retire the municipality's share of the bonded
2-23 indebtedness of the ______(name of agency) municipal power agency."
2-24 (g) Revenue from the tax imposed under this section may be
2-25 used only to retire the municipality's share of the bonded
2-26 indebtedness, on September 1, 1999, of the municipal power agency
3-1 in which the municipality participates. If the municipal power
3-2 agency has not determined a municipality's share of the bonded
3-3 indebtedness on or before September 1, 1999, the municipality's
3-4 share of the debt shall be determined in accordance with the ratio
3-5 that the population of the municipality bears to the total
3-6 population of all participating public entities.
3-7 (h) A sales and use tax imposed under this section may not
3-8 be collected after the last day of the first calendar quarter
3-9 occurring after the earlier of:
3-10 (1) the 10th anniversary of the date the municipality
3-11 began collecting the tax; or
3-12 (2) the date the municipality notifies the comptroller
3-13 that the municipality has abolished the tax or that the
3-14 municipality's share of the bonded indebtedness has been paid in
3-15 full or the full amount of money, excluding guaranteed interest,
3-16 necessary to pay in full the municipality's share of the bonded
3-17 indebtedness has been set aside in a trust account dedicated to the
3-18 payment of the bonds.
3-19 (i) The municipality shall notify the comptroller of the
3-20 expiration of the tax not later than the 60th day before the
3-21 expiration date.
3-22 SECTION 2. This Act takes effect September 1, 1999.
3-23 SECTION 3. The importance of this legislation and the
3-24 crowded condition of the calendars in both houses create an
3-25 emergency and an imperative public necessity that the
3-26 constitutional rule requiring bills to be read on three several
4-1 days in each house be suspended, and this rule is hereby suspended.
4-2 COMMITTEE AMENDMENT NO. 1
4-3 Amend S.B. No. 1876, in SECTION 1 of the bill, in added
4-4 Subsection 163.103(a), Utilities Code (Engrossed Printing, page 1,
4-5 lines 11-15), by striking the last sentence of the subsection and
4-6 substituting the following sentence:
4-7 Section 321.101(f), Tax Code, does not apply to the tax authorized
4-8 by this section in a municipality with a population of 30,000 or
4-9 less or that has a municipally owned electric utility that has
4-10 50,000 or more meter connections.
4-11 76R15507 SMJ-D Oliveira