78(R) HB 2784 - Introduced version

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78R6307 DRH-D

By:  Eiland                                                       H.B. No. 2784



A BILL TO BE ENTITLED

AN ACT

relating to allowing rural fire prevention districts to impose a 
sales and use tax.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter E, Chapter 794, Health and Safety 
Code, is amended by adding Sections 794.0751, 794.0752, and 
794.0753 to read as follows:
	Sec. 794.0751.  SALES AND USE TAX.  (a)  A district may adopt 
a sales and use tax, change the rate of its sales and use tax, or 
abolish its sales and use tax at an election held as provided by 
Section 794.0752.  The district may impose the tax at a rate of 
one-half percent, one percent, one and one-half percent, or two 
percent.  Revenue from the tax may be used for any purpose for which 
ad valorem tax revenue of the district may be used.
	(b)  Chapter 323, Tax Code, applies to the application, 
collection, and administration of the tax imposed under this 
section.  The comptroller may make rules for the collection and 
administration of this tax in the same manner as for a tax imposed 
under Chapter 323, Tax Code.
	(c)  A district may not adopt a tax under this section or 
increase the rate of the tax if as a result of the adoption of the 
tax or the tax increase the combined rate of all sales and use taxes 
imposed by the district and other political subdivisions of this 
state having territory in the district would exceed two percent at 
any location in the district.
	(d)  If the voters of a district approve the adoption of the 
tax or an increase in the tax rate at an election held on the same 
election date on which another political subdivision of this state 
adopts a sales and use tax or approves the increase in the rate of 
its sales and use tax and as a result the combined rate of all sales 
and use taxes imposed by the district and other political 
subdivisions of this state having territory in the district would 
exceed two percent at any location in the district, the election to 
adopt a sales and use tax or to increase the rate of the sales and 
use tax in the district under this subchapter has no effect.
	Sec. 794.0752.  SALES AND USE TAX ELECTION PROCEDURES.  (a)  
Except as otherwise provided by this subchapter, an election to 
adopt or abolish a district's sales and use tax or to change the 
rate of the tax is governed by the provisions of Subchapter E, 
Chapter 323, Tax Code, applicable to an election to adopt or abolish 
a county sales and use tax.
	(b)  An election is called by the adoption of a resolution by 
the board.  The board shall call an election if a number of 
qualified voters of the district equal to at least five percent of 
the number of registered voters in the district petition the board 
to call the election.
	(c)  At an election to adopt the tax, the ballot shall be 
prepared to permit voting for or against the proposition:  "The 
adoption of a local sales and use tax in (name of district) at the 
rate of (proposed tax rate) percent."
	(d)  At an election to abolish the tax, the ballot shall be 
prepared to permit voting for or against the proposition:  "The 
abolition of the local sales and use tax in (name of district)."
	(e)  At an election to change the rate of the tax, the ballot 
shall be prepared to permit voting for or against the proposition:  
"The (increase or decrease, as applicable) in the rate of the local 
sales and use tax imposed by (name of district) from (tax rate on 
election date) percent to (proposed tax rate) percent."
	Sec. 794.0753.  SALES AND USE TAX EFFECTIVE DATE;  BOUNDARY 
CHANGE.  (a)  The adoption or abolition of the tax or change in the 
tax rate takes effect on the first day of the first calendar quarter 
occurring after the expiration of the first complete calendar 
quarter occurring after the date on which the comptroller receives 
a notice of the results of the election.
	(b)  If the comptroller determines that an effective date 
provided by Subsection (a) will occur before the comptroller can 
reasonably take the action required to begin collecting the tax or 
to implement the abolition of the tax or the tax rate change, the 
effective date may be extended by the comptroller until the first 
day of the next succeeding calendar quarter.
	(c)  The provisions of Section 321.102, Tax Code, governing 
the application of a municipal sales and use tax in the event of a 
change in the boundaries of a municipality apply to the application 
of a tax imposed under this chapter in the event of a change in the 
district's boundaries.
	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.