By Nixon S.B. No. 1876 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.