BILL ANALYSIS
Senate Research Center S.B. 41
AUTHOR'S/SPONSOR'S STATEMENT OF INTENT
Currently, a city cannot pledge sales tax revenue to secure indebtedness issued by the city. As proposed, S.B. 41 allows sales and use tax dollars to be used to pay or secure the payment of public securities under certain circumstances.
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 Chapter 1331, Government Code, by adding Subchapter Z, as follows:
SUBCHAPTER Z. MISCELLANEOUS PROVISIONS
Sec. 1331.901. USE OF SALES TAX TO PAY OR SECURE CERTAIN PUBLIC SECURITIES. (a) Defines "public security."
(b) Authorizes revenue derived from a sales and use tax received by a municipality, if approved at an election as provided by Subsection (c), to be used to pay or secure the payment of public securities issued by or on behalf of the municipality to finance the acquisition, construction, equipping, renovation, or improvement of any public work or other project any part of which is located in certain zones, districts, or communities.
(c) Authorizes revenue derived from a sales and use tax received by a municipality to be used for a purpose described by Subsection (b) only if approved by a majority of the voters voting at an election in the municipality ordered by the governing body of the municipality for that purpose.
SECTION 2. Amends Section 321.506, Tax Code, to make a conforming change.
SECTION 3. Effective date: upon passage or November 1, 2005.