1-1 By: Nixon S.B. No. 1876 1-2 (In the Senate - Filed April 20, 1999; April 21, 1999, read 1-3 first time and referred to Committee on Intergovernmental 1-4 Relations; April 29, 1999, reported favorably by the following 1-5 vote: Yeas 4, Nays 0; April 29, 1999, sent to printer.) 1-6 A BILL TO BE ENTITLED 1-7 AN ACT 1-8 relating to the authority of certain municipalities to impose a 1-9 sales and use tax to retire the debt of a municipal power agency 1-10 created by the municipalities. 1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-12 SECTION 1. Subchapter D, Chapter 163, Utilities Code, is 1-13 amended by adding Section 163.103 to read as follows: 1-14 Sec. 163.103. AUTHORITY TO IMPOSE SALES AND USE TAX. 1-15 (a) Except to the extent that a provision of this section applies, 1-16 Chapter 321, Tax Code, applies to the tax authorized by this 1-17 section in the same manner as that chapter applies to the tax 1-18 authorized by that chapter. Section 321.101(f), Tax Code, does not 1-19 apply to the tax authorized by this section. 1-20 (b) A municipality that participates in a municipal power 1-21 agency created under this subchapter may adopt or abolish the sales 1-22 and use tax authorized by this section at an election held in the 1-23 municipality. The rate of the tax authorized by this section is 1-24 one-half percent. 1-25 (c) The adoption or abolition of the tax takes effect on the 1-26 first day of the first calendar quarter occurring after the 1-27 expiration of the first complete calendar quarter occurring after 1-28 the date the comptroller receives a notice of the results of the 1-29 election. If the comptroller determines that an effective date 1-30 provided by this subsection will occur before the comptroller can 1-31 reasonably take the action required to begin collecting the tax or 1-32 to implement the abolition of the tax, the effective date may be 1-33 extended by the comptroller until the first day of the next 1-34 succeeding calendar quarter. 1-35 (d) An election to adopt or abolish the tax authorized by 1-36 this section is called by the adoption of an order by the governing 1-37 body of the municipality. The governing body shall call an 1-38 election if a number of qualified voters of the municipality equal 1-39 to at least five percent of the number of registered voters in the 1-40 municipality petitions the governing body to call the election. 1-41 (e) At an election to adopt the tax, the ballot shall be 1-42 prepared to permit voting for or against the proposition: "The 1-43 adoption of a sales and use tax in _________(name of municipality) 1-44 at the rate of one-half percent to provide revenue to retire the 1-45 municipality's share of the bonded indebtedness of the ______(name 1-46 of agency) municipal power agency." 1-47 (f) At an election to abolish the tax, the ballot shall be 1-48 prepared to permit voting for or against the proposition: "The 1-49 abolition of the sales and use tax in _________(name of 1-50 municipality) used to retire the municipality's share of the bonded 1-51 indebtedness of the ______(name of agency) municipal power agency." 1-52 (g) Revenue from the tax imposed under this section may be 1-53 used only to retire the municipality's share of the bonded 1-54 indebtedness, on September 1, 1999, of the municipal power agency 1-55 in which the municipality participates. If the municipal power 1-56 agency has not determined a municipality's share of the bonded 1-57 indebtedness on or before September 1, 1999, the municipality's 1-58 share of the debt shall be determined in accordance with the ratio 1-59 that the population of the municipality bears to the total 1-60 population of all participating public entities. 1-61 (h) A sales and use tax imposed under this section may not 1-62 be collected after the last day of the first calendar quarter 1-63 occurring after the earlier of: 1-64 (1) the 10th anniversary of the date the municipality 2-1 began collecting the tax; or 2-2 (2) the date the municipality notifies the comptroller 2-3 that the municipality has abolished the tax or that the 2-4 municipality's share of the bonded indebtedness has been paid in 2-5 full or the full amount of money, excluding guaranteed interest, 2-6 necessary to pay in full the municipality's share of the bonded 2-7 indebtedness has been set aside in a trust account dedicated to the 2-8 payment of the bonds. 2-9 (i) The municipality shall notify the comptroller of the 2-10 expiration of the tax not later than the 60th day before the 2-11 expiration date. 2-12 SECTION 2. This Act takes effect September 1, 1999. 2-13 SECTION 3. The importance of this legislation and the 2-14 crowded condition of the calendars in both houses create an 2-15 emergency and an imperative public necessity that the 2-16 constitutional rule requiring bills to be read on three several 2-17 days in each house be suspended, and this rule is hereby suspended. 2-18 * * * * *