78(R) HB 2386 - Senate Committee Report version


                                                                                


By:  Hill, et al. (Senate Sponsor - Brimer)                       H.B. No. 2386
	(In the Senate - Received from the House May 7, 2003; 
May 9, 2003, read first time and referred to Committee on 
Intergovernmental Relations; May 20, 2003, reported favorably by 
the following vote:  Yeas 3, Nays 0; May 20, 2003, sent to printer.)


A BILL TO BE ENTITLED

AN ACT


relating to the authority of certain municipalities or counties to 
impose a facility use tax to finance venue projects.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Chapter 334, Local Government Code, is amended 
by adding Subchapter K to read as follows:

SUBCHAPTER K.  LIVESTOCK FACILITY USE TAX
	Sec. 334.401.  DEFINITIONS.  In this subchapter:                        
		(1)  "Designated facility" means an approved venue 
project the principal use of which is for rodeos, livestock shows, 
equestrian events, agricultural expositions, county fairs, or 
similar events.
		(2)  "Event" means a rodeo or an agricultural, 
equestrian or livestock show, fair, competition, exhibition, or 
sale held on one or more consecutive days under the auspices of one 
or more presenting or sponsoring organizations.
		(3)  "Stall or pen" means an enclosure or designated 
space and tie point for the purpose of housing or holding livestock.
	Sec. 334.402.  APPLICABILITY.  This subchapter applies only 
to:       
		(1)  a county in which the majority of the population of 
two or more municipalities with a population of 300,000 or more are 
located; or
		(2)  a municipality for which the majority of the 
population is located in a county described by Subdivision (1).
	Sec. 334.403.  TAX AUTHORIZED.  (a)  A municipality or a 
county may impose a facility use tax for the use or occupancy by 
livestock of a stall or pen at a designated facility in that 
municipality or county for which the municipality or county has 
issued bonds to plan, acquire, establish, develop, construct, or 
renovate.
	(b)  The municipality or county may impose the facility use 
tax under this subchapter only at a designated facility that is an 
approved venue project.
	(c)  A municipality or county may impose a tax under this 
subchapter only if:
		(1)  the municipality or county issues bonds or other 
obligations under Section 334.043, and those bonds or other 
obligations are outstanding and unpaid; and
		(2)  the tax is approved at an election held under 
Section 334.024.  
	Sec. 334.404.  TAX RATE.  (a)  The tax authorized by this 
subchapter is imposed on each stall or pen used or occupied at a 
designated facility.
	(b)  The tax may be imposed at any uniform amount not to 
exceed $20 for each event.
	(c)  The ballot proposition at the election held to adopt the 
tax must specify the maximum amount of the tax to be adopted.
	(d)  Different tax rates may be imposed based on the duration 
of an event, except that the rate must be uniform for each event of 
similar duration and the rate may not exceed the maximum rate 
adopted by the voters.
	(e)  The municipality or the county may repeal, decrease, and 
increase the rates of the tax imposed under this subchapter, except 
that the tax may not be imposed at a rate exceeding the maximum rate 
adopted by the voters.
	Sec. 334.405.  INCREASE IN MAXIMUM TAX RATE.  (a)  If the 
voters of a municipality or county have approved a tax under this 
subchapter at a rate of less than $20 for each event, the 
municipality or county may call an election for the approval of the 
voters to increase the maximum tax rate.  If a majority of the votes 
cast at the election approve the new rate, the municipality or 
county may increase the rate of the tax to the maximum rate 
approved.
	(b)  The ballot for an election to increase the rate of the 
tax shall be printed to permit voting for or against the 
proposition:  "The increase of the facility use tax for the purpose 
of financing _______ (insert description of the designated 
facility) to a maximum rate of _______ per event (insert new maximum 
rate not to exceed $20)."
	Sec. 334.406.  EXEMPTION.  The municipality by ordinance or 
the county by order may establish an exemption from the tax imposed 
under this subchapter for the use or occupancy of stalls or pens at 
a designated facility by livestock at a county junior livestock 
show.
	Sec. 334.407.  NATURE OF TAX.  (a)  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 
recoverable at law.
	(b)  The tax imposed by this subchapter is not an occupation 
tax imposed on the owner or lessee of the designated facility, the 
user or the sublessee of the designated facility, the livestock, or 
the owner of the livestock.
	Sec. 334.408.  EFFECTIVE DATE OF TAX.  A tax imposed under 
this subchapter or a change in a tax rate takes effect on the date 
prescribed by the ordinance or order imposing the tax or changing 
the rate.
	Sec. 334.409.  COLLECTION OF TAX.  (a)  The municipality or 
county may require the owner or lessee of a designated facility in 
the municipality or county to collect the tax for the benefit of the 
municipality or county.
	(b)  A person required to collect a tax imposed under this 
subchapter shall report and send the taxes to the municipality or 
county as provided by the municipality or county imposing the tax.
	(c)  For a tax imposed under this subchapter, a municipality 
or county may prescribe penalties, including interest charges, for 
failure to keep records required by the municipality or county, to 
report when required, or to pay the tax when due.  An attorney 
acting for the municipality or county may bring suit against a 
person who fails to collect a tax under this subchapter and to pay 
the tax to the municipality or county as required.
	(d)  A municipality or county may permit a person who is 
required to collect a tax under this subchapter to retain a 
percentage of the amount collected and required to be reported as 
reimbursement to the person for the costs of collecting the tax.  
The municipality or county may provide that the person may retain 
the amount only if the person pays the tax and files reports as 
required by the municipality or county.
	Sec. 334.410.  DEPOSIT OF TAX REVENUE.  Revenue from the tax 
imposed under this subchapter shall be deposited in the venue 
project fund of the municipality or county imposing the tax.
	SECTION 2.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2003.



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