C.S.H.B. 2386 78(R)    BILL ANALYSIS


C.S.H.B. 2386
By: Hill
Local Government Ways and Means
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

The Local Government Code allows certain counties to impose specific
purpose taxes if the citizens of the county approve the tax at an election
held under Section 334.043 of the Code.  C.S.H.B. 2386 allows certain
counties and municipalities, with voter approval,  to impose a facility
use tax to assist with the financing of venue projects. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS

SECTION 1. Amends Chapter 334  by adding Subchapter K, and adds Sec
334.401 to establish definitions for "designated facility", "event", and
"stall or pen". 

Sec. 334.402 establishes that the subchapter applies to a county having
two municipalities with a population of 300,000 or more.  Additionally,
the subchapter applies to a municipality in a county meeting that
criteria. 

Sec. 334.403 outlines when a county or municipality may impose a livestock
facility use tax. Requires an election to approve the tax. 

Sec. 334.404 and 334.405 establishes the tax rate, places a cap on the
maximum rate, and requires voter approval for an increase to the rate. 

Sec. 334.406 allows a municipality or a county to make exemptions.

Sec. 334.407 states that the tax imposed by this subchapter is a debt owed
to the owner or lessee of the designated facility  by the user or
sublessee of the designated facility and is not an occupation tax.  Sec.
334.408 and 334.409 prescribe the effective date of the tax as well as the
manner in which it is to be collected. 

Sec. 334.410 requires the tax revenue to be deposited in the venue project
fund of the entity imposing the tax. 


SECTION 2.  Effective date.


EFFECTIVE DATE

Upon passage, or, if the Act does not receive the necessary vote, the Act
takes effect September 1, 2003. 


COMPARISON OF ORIGINAL TO SUBSTITUTE

 
Amends applicability language to apply only to a county having two cities
with a population of 300,000 or more, and also applies to a municipality
in a county meeting that criteria. 

Sec. 334.1041 relating to a rate increase in certain counties is deleted.
Sec.334.405 is added to establish the only procedure by which voters may
approve an increase in the rate. 

Subchapter K is added to establish a livestock facility use tax, and
definitions are outlined for a "designated facility", an "event", and a
"stall or pen".  The bill authorizes the governmental entity to impose the
facility tax only in specific instances, and it sets a cap on the rate. 

The C.S.H.B. authorizes the county or city to allow exemptions.  The
nature of the tax as well as its effective date is defined.  The manner in
which the tax is collected is prescribed.  The substitute clearly states
that revenue shall be deposited in the venue project fund of the entity
imposing the tax. 

The effective date is unchanged.