SRC-TBR, H.B. 1390 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 1390
77R4329 CBH-DBy: Najera (Shapleigh)
Business & Commerce
4/29/2001
Engrossed


DIGEST AND PURPOSE 

In 1989, to encourage business development, the legislature modified the
Development Corporation Act of 1979 to authorize cities in counties with a
population of 500,000 or fewer to adopt up to a onehalf percent sales tax
on local retail sales to support local economic development projects. The
following session, the legislature again modified the Act to authorize
cities in counties with a population of 750,000 or more to assess the same
one-half percent sales tax. Counties with a population between 500,000 and
750,000, currently El Paso, Hildago, and Travis, are prevented from
utilizing this economic development tool. H.B. 1390 lowers the population
requirement for an "eligible city" where the combined rate of sales and use
taxes does not exceed 8.25 percent to include a city located in a county
with a population of 500,000 or more.  



RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 


SECTION BY SECTION ANALYSIS

SECTION 1.  Amends 4B(a)(1), Development Corporation Act of 1979 (Article
5190.6, V.T.C.S.) to Provide that "Eligible City" means a city that is
located in a county with a population of 500,000 rather than 750,000 or
more, according to the most recent federal decennial census and in which
the combined  rate of all sales and use taxes imposed by the city, the
state, and other political subdivisions of the state having territory in
the city does not exceed 8.25 percent on the date of any election held
under or made applicable to this section.  Redignates paragraph (D) as
paragraph (C) and deletes provision that paragraph (C) of this subdivision
expires September 1, 1999.  

SECTION 2.  Effective date:  upon passage or September 1, 2001.