79R5839 MXM-D
By: Carona S.B. No. 899
A BILL TO BE ENTITLED
AN ACT
relating to funding for crime control and prevention districts;
imposing a tax and providing a penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 363.054(b), Local Government Code, is
amended to read as follows:
(b) An order calling an election under Subsection (a) must
state:
(1) the nature of the election, including the
proposition that is to appear on the ballot;
(2) the date of the election;
(3) the hours during which the polls will be open;
(4) the location of the polling places;
(5) in summary form, the approved budget plan and
crime control plan of the proposed district; and
(6) the proposed rate of each type of [the sales and
use] tax for the district.
SECTION 2. Section 363.055(c), Local Government Code, is
amended to read as follows:
(c) A municipality that creates a district may [shall] adopt
a sales and use tax. A municipality that adopts a sales and use tax
shall adopt the tax under Section 323.105, Tax Code, for financing
the operation of the district in the same manner as a county under
that section.
SECTION 3. Section 363.058, Local Government Code, is
amended to read as follows:
Sec. 363.058. BALLOT PROPOSITION. The ballot for an
election to create a district shall be printed to permit voting for
or against the proposition: "The creation of the ________ (name of
the political subdivision proposing to create the district) Crime
Control and Prevention District dedicated to crime reduction
programs and the adoption of a proposed [local sales and use] tax at
a rate of ______ (list each type of tax and the rate specified in the
election order for that type of tax)."
SECTION 4. Section 363.061(b), Local Government Code, is
amended to read as follows:
(b) The budget plan must include:
(1) the amount of money budgeted by the district for
each crime control and crime prevention strategy;
(2) the amount of money budgeted by the district and
the percentage of the total budget of the district for
administration, with individual amounts showing the cost of the
administration that would be conducted by the district and the cost
of administration that would be conducted by private or public
entities;
(3) the estimated amount of money available to the
district from all sources during the ensuing year;
(4) the amount of balances expected at the end of the
years for which the budget is prepared; and
(5) the estimated tax rate for each type of tax that
will be required.
SECTION 5. Sections 363.154(a) and (b), Local Government
Code, are amended to read as follows:
(a) In a district created by a county, the board, from the
[sales and use] tax revenue distributed to the district [under
Section 323.105, Tax Code,] must budget, to the extent practicable:
(1) not less than 49.75 percent of the revenue to
finance programs for which applications are submitted under Section
363.209(a);
(2) not less than 24.87 percent of the revenue to
finance programs for which applications are submitted under Section
363.209(b); and
(3) not less than 24.87 percent of the revenue to be
distributed under Subsection (b) or (d).
(b) In a district containing more than one municipality, the
funds under Subsection (a)(3) shall be apportioned to the
municipalities of the district based on a formula that averages the
proportionate percentage of:
(1) the population of a municipality to the total
population of the district;
(2) the index crime reported in each municipality in
the district to the total index crime reported in the district; and
(3) the [sales] tax generated by each municipality to
the total [sales] tax generated in the district based on the amount
collected during the preceding year.
SECTION 6. Section 363.203(b), Local Government Code, is
amended to read as follows:
(b) The proposed budget must contain a complete financial
statement, including a statement of:
(1) the outstanding obligations of the district;
(2) the amount of cash on hand to the credit of each
fund of the district;
(3) the amount of money received by the district from
all sources during the previous year;
(4) the estimated amount of money available to the
district from all sources during the current fiscal year;
(5) the amount of money needed to fund programs
approved for funding by the board;
(6) the amount of money requested for programs that
were not approved for funding by the board;
(7) the tax rate for each type of tax for the next
fiscal year;
(8) the amount of the balances expected at the end of
the year in which the budget is being prepared; and
(9) the estimated amount of revenues and balances
available to cover the proposed budget.
SECTION 7. Sections 363.251(e) and (f), Local Government
Code, are amended to read as follows:
(e) For a continuation referendum, the ballot shall be
printed to permit voting for or against the proposition: "Whether
the ____________ (name of the political subdivision that created
the district) Crime Control and Prevention District should be
continued and the crime control and prevention district __________
(list each type of tax here) [sales and use tax] should be
continued."
(f) For a dissolution referendum, the ballot shall be
printed to permit voting for or against the proposition: "Whether
the ____________ (name of the political subdivision that created
the district) Crime Control and Prevention District should be
dissolved and the crime control and prevention district __________
(list each type of tax here) [sales and use tax] should be
abolished."
SECTION 8. Section 363.2515(c), Local Government Code, is
amended to read as follows:
(c) For a continuation referendum under this section, the
ballot shall be printed to permit voting for or against the
proposition: "Whether the _________ Crime Control and Prevention
District should be continued for _______ years and the crime
control and prevention district __________ (list each type of tax
here) [sales and use tax] should be continued for __________
years."
SECTION 9. Sections 363.252(b) and (c), Local Government
Code, are amended to read as follows:
(b) To be valid, an application for a petition to continue
the district must contain:
(1) the following heading: "Application for a
Petition for a Local Option Referendum to Continue the Crime
Control and Prevention District and to Continue the Crime Control
and Prevention District __________ (list each type of tax here)
[Sales and Use Tax]";
(2) the following statement of the issue to be voted
on: "Whether the ____________ (name of the political subdivision
that created the district) Crime Control and Prevention District
should be continued and the crime control and prevention district
__________ (list each type of tax here) [sales and use tax] should
be continued";
(3) the following statement immediately above the
signatures of the applicants: "It is the purpose and intent of the
applicants whose signatures appear below that the crime control and
prevention district be continued and the crime control and
prevention district __________ (list each type of tax here) [sales
and use tax] in ____________ (name of the political subdivision
that created the district) be continued"; and
(4) the printed name, signature, residence address,
and voter registration certificate number of each applicant.
(c) To be valid, an application for a petition to dissolve
the district must contain:
(1) the following heading: "Application for a
Petition for a Local Option Referendum to Dissolve the Crime
Control and Prevention District and to Abolish the Crime Control
and Prevention District __________ (list each type of tax here)
[Sales and Use Tax]";
(2) the following statement of the issue to be voted
on: "Whether the ____________ (name of the political subdivision
that created the district) Crime Control and Prevention District
should be dissolved and the crime control and prevention district
__________ (list each type of tax here) [sales and use tax] should
be abolished";
(3) the following statement immediately above the
signatures of the applicants: "It is the purpose and intent of the
applicants whose signatures appear below that the crime control and
prevention district be dissolved and the crime control and
prevention district __________ (list each type of tax here) [sales
and use tax] in ____________ (name of the political subdivision
that created the district) be abolished"; and
(4) the printed name, signature, residence address,
and voter registration certificate number of each applicant.
SECTION 10. Section 363.253, Local Government Code, is
amended to read as follows:
Sec. 363.253. PETITION. (a) To be valid, a petition for a
referendum to continue a district must contain:
(1) the following heading: "Petition for a Local
Option Referendum to Continue the ____________ (name of the
political subdivision that created the district) Crime Control and
Prevention District and to Continue the Crime Control and
Prevention District __________ (list each type of tax here) [Sales
and Use Tax]";
(2) a statement of the issue to be voted on in the same
words used in the application;
(3) the following statement immediately above the
signatures of the petitioners: "It is the purpose and intent of the
petitioners whose signatures appear below that the crime control
and prevention district be continued and the crime control and
prevention district __________ (list each type of tax here) [sales
and use tax] in ____________ (name of the political subdivision
that created the district) be continued";
(4) lines and spaces for the names, signatures,
residence addresses, and voter registration certificate numbers of
the petitioners; and
(5) the date of issuance, the serial number, and the
seal of the clerk of the political subdivision on each page.
(b) To be valid, a petition for a referendum to dissolve a
district must contain:
(1) the following heading: "Petition for a Local
Option Referendum to Dissolve the ____________ (name of the
political subdivision that created the district) Crime Control and
Prevention District and to Abolish the Crime Control and Prevention
District __________ (list each type of tax here) [Sales and Use
Tax]";
(2) a statement of the issue to be voted on in the same
words used in the application;
(3) the following statement immediately above the
signatures of the petitioners: "It is the purpose and intent of the
petitioners whose signatures appear below that the crime control
and prevention district be dissolved and the crime control and
prevention district __________ (list each type of tax here) [sales
and use tax] in ____________ (name of the political subdivision
that created the district) be abolished";
(4) lines and spaces for the names, signatures,
residence addresses, and voter registration certificate numbers of
the petitioners; and
(5) the date of issuance, the serial number, and the
seal of the clerk of the political subdivision on each page.
SECTION 11. Section 363.262(b), Local Government Code, is
amended to read as follows:
(b) If the district is to be dissolved as a result of the
referendum, the abolition of the local crime control sales and use
tax, if any, takes effect on the first day of the first calendar
quarter that occurs after the expiration of the first complete
calendar quarter that occurs after the comptroller receives a
notice of the results of the continuation or dissolution
referendum.
SECTION 12. Section 363.302(c), Local Government Code, is
amended to read as follows:
(c) If on the date that the district is dissolved the
district has outstanding short-term or long-term liabilities, the
board shall, not later than the 30th day after the date of the
dissolution, adopt a resolution certifying each outstanding
short-term and long-term liability. The political subdivision that
created the district shall assume the outstanding short-term and
long-term liabilities. The political subdivision shall collect
each tax imposed under this chapter [the sales and use tax under
Section 323.105, Tax Code,] for the remainder of the calendar year
and may by resolution of its governing body continue to collect each
[the] tax for an additional calendar year if the revenue [from the
tax] is needed to retire liabilities of the district that were
assumed by the political subdivision. The governing body shall
notify the comptroller of this continuation not later than the 60th
day before the date the tax would otherwise expire. Any tax
collected after the liabilities have been retired shall be
transferred or conveyed as provided by Subsection (a).
SECTION 13. Chapter 363, Local Government Code, is amended
by adding Subchapters H and I to read as follows:
SUBCHAPTER H. SHORT-TERM MOTOR VEHICLE RENTAL TAX
Sec. 363.351. DEFINITIONS. (a) In this subchapter:
(1) "Motor vehicle" means a self-propelled vehicle
designed principally to transport persons or property on a public
roadway and includes a passenger car, van, station wagon, sports
utility vehicle, and truck. The term does not include a:
(A) trailer, semitrailer, house trailer, truck
having a manufacturer's rating of more than one-half ton, or
road-building machine;
(B) device moved only by human power;
(C) device used exclusively on stationary rails
or tracks;
(D) farm machine; or
(E) mobile office.
(2) "Rental" means an agreement by the owner of a motor
vehicle to authorize for not longer than 30 days the exclusive use
of that vehicle to another for consideration.
(3) "Place of business of the owner" means an
established outlet, office, or location operated by the owner of a
motor vehicle or the owner's agent or employee for the purpose of
renting motor vehicles and includes any location at which three or
more rentals are made during a year.
(b) Except as provided by Subsection (a), words used in this
subchapter and defined by Chapter 152, Tax Code, have the meanings
assigned by Chapter 152, Tax Code.
Sec. 363.352. TAX AUTHORIZED. (a) A municipality by
ordinance or a county by order may impose a tax on the rental in the
municipality or county of a motor vehicle for the benefit of a
district that was created by the municipality or county.
(b) A municipality by ordinance or a county by order may
repeal or decrease the rate of a tax imposed under Subsection (a).
(c) A municipality or county may impose a tax under this
subchapter only if the tax:
(1) is for a purpose authorized by Section 363.151;
and
(2) is approved at an election held under Section
363.354.
Sec. 363.353. SHORT-TERM RENTAL TAX. The tax authorized by
this subchapter is imposed at a rate in increments of one-eighth of
one percent, not to exceed six percent, on the gross rental receipts
from the rental in the municipality or county of a motor vehicle.
Sec. 363.354. RATE ELECTION. (a) A municipality or county
may adopt or increase a tax under this subchapter by ordinance or
order if the rate or increase is not greater than the maximum
applicable rate and the rate is approved by a majority of the
registered voters of that municipality or county voting at an
election called and held for that purpose.
(b) The ballot for an election to adopt or increase the rate
of the tax shall be printed to permit voting for or against the
proposition: "The motor vehicle rental tax for the purpose of
financing __________ (insert description of appropriate purposes
here) to a maximum rate of ___________ percent (insert applicable
rate)."
Sec. 363.355. COMPUTATION OF TAX. (a) The owner of a motor
vehicle subject to the tax imposed under this subchapter shall
collect the tax for the benefit of the municipality or county.
(b) The owner shall add the short-term motor vehicle rental
tax imposed by the municipality or county under this subchapter, if
applicable, and the gross rental receipts tax imposed by Chapter
152, Tax Code, to the rental charge, and the sum of the taxes is a
part of the rental charge, is a debt owed to the motor vehicle owner
by the person renting the vehicle, and is recoverable at law in the
same manner as the rental charge.
Sec. 363.356. CONSUMMATION OF RENTAL. A rental of a motor
vehicle occurs in the municipality or county in which transfer of
possession of the motor vehicle occurs.
Sec. 363.357. EXEMPTIONS APPLICABLE. The exemptions
provided by Subchapter E, Chapter 152, Tax Code, apply to the tax
authorized by this subchapter.
Sec. 363.358. GROSS RECEIPTS PRESUMED SUBJECT TO TAX. All
gross receipts of an owner of a motor vehicle from the rental of the
motor vehicle are presumed to be subject to the tax imposed by this
subchapter, except for gross receipts for which the owner has
accepted in good faith a properly completed exemption certificate.
Sec. 363.359. RECORDS. (a) The owner of a motor vehicle
used for rental purposes shall keep for four years records and
supporting documents containing the following information on the
amount of:
(1) gross rental receipts received from the rental of
the motor vehicle; and
(2) the tax imposed under this subchapter and paid to
the municipality or county on each motor vehicle used for rental
purposes by the owner.
(b) Mileage records are not required.
Sec. 363.360. FAILURE TO KEEP RECORDS. (a) An owner of a
motor vehicle commits an offense if the owner fails to make and
retain complete records for the four-year period required by
Section 363.359.
(b) An offense under this section is a misdemeanor
punishable by a fine of not less than $25 or more than $500.
Sec. 363.361. EFFECTIVE DATE AND ENDING DATE OF TAX. A tax
imposed under this subchapter or a change in the tax rate takes
effect on the date prescribed by the ordinance or order imposing the
tax or changing the rate.
Sec. 363.362. TAX COLLECTION; PENALTY. (a) The owner of a
motor vehicle required to collect the tax imposed under this
subchapter shall report and send the taxes collected to the
municipality or county as provided by the ordinance or order
imposing the tax.
(b) A municipality by ordinance or a county by order 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.
(c) The 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 it over to the municipality or county as
required.
Sec. 363.363. REIMBURSEMENT FOR TAX COLLECTION EXPENSES.
(a) Subject to Subsection (b), a municipality or county shall allow
a person who is required to collect and remit the tax imposed under
this subchapter one percent of the amount collected and required to
be remitted as reimbursement to the person for the costs of
collecting the tax.
(b) A person required to collect and remit the tax imposed
under this subchapter is not entitled to reimbursement under
Subsection (a) unless the municipality or county receives the
amount required to be collected not later than the 15th day after
the end of the collection period. If the 15th day is on a weekend or
holiday, the municipality or county must receive the amount
required to be collected not later than the first working day after
the 15th day. If the person remits the amount required to be
collected by mail, the date postmarked by the United States Postal
Service is considered to be the date of receipt by the municipality
or county.
Sec. 363.364. COLLECTION PROCEDURES ON PURCHASE OF MOTOR
VEHICLE RENTAL BUSINESS. (a) If the owner of a motor vehicle
rental business that makes rentals subject to the tax imposed by
this subchapter sells the business, the successor to the seller or
the seller's assignee shall withhold an amount of the purchase
price sufficient to pay the amount of tax due until the seller
provides a receipt by a person designated by the municipality or
county to provide the receipt showing that the amount has been paid
or a certificate showing that no tax is due.
(b) The purchaser of a motor vehicle rental business who
fails to withhold an amount of the purchase price as required by
this section is liable for the amount required to be withheld to the
extent of the value of the purchase price.
(c) The purchaser of a motor vehicle rental business may
request that the person designated by the municipality or county to
provide a receipt under Subsection (a) issue a certificate stating
that no tax is due or issue a statement of the amount required to be
paid before a certificate may be issued. The person designated by
the municipality or county shall issue the certificate or statement
not later than the 60th day after the date the person receives the
request.
(d) If the person designated by the municipality or county
to provide a receipt under Subsection (a) fails to issue the
certificate or statement within the period provided by Subsection
(c), the purchaser is released from the obligation to withhold the
purchase price or pay the amount due.
Sec. 363.365. DEPOSIT OF TAX REVENUE. Revenue from the tax
imposed under this subchapter shall be provided to the district by
the municipality or county imposing the tax.
SUBCHAPTER I. HOTEL OCCUPANCY TAXES
Sec. 363.401. DEFINITION. In this subchapter, "hotel" has
the meaning assigned by Section 156.001, Tax Code.
Sec. 363.402. IMPOSITION OF TAX. (a) A municipality by
ordinance or a county by order may impose, for the benefit of a
district created by the municipality or county, a tax on a person
who, under a lease, concession, permit, right of access, license,
contract, or agreement, pays for the use or possession or for the
right to the use or possession of a room that is in a hotel, costs $2
or more each day, and is ordinarily used for sleeping.
(b) A municipality or county may impose a tax under this
subchapter only if the tax:
(1) is for a purpose authorized by Section 363.151;
and
(2) is approved at an election held under Section
363.405.
Sec. 363.403. TAX CODE APPLICABLE. (a) Sections
351.002(c), 351.004, 351.0041, 351.005, and 351.006, Tax Code,
govern the imposition, computation, administration, collection,
and remittance of a municipal tax authorized under this subchapter
except as inconsistent with this subchapter.
(b) Sections 352.002(c), 352.004, 352.0041, 352.005, and
352.007, Tax Code, govern the imposition, computation,
administration, collection, and remittance of a county tax
authorized under this subchapter except as inconsistent with this
subchapter.
(c) The tax imposed by this subchapter is in addition to a
tax imposed under Chapter 351 or 352, Tax Code.
Sec. 363.404. TAX RATE. The tax authorized by this
subchapter may be imposed by a municipality or county at any rate
not to exceed three percent of the price paid for a room in a hotel.
Sec. 363.405. RATE ELECTION. (a) A municipality or county
may adopt or increase a tax under this subchapter by ordinance or
order if the rate or increase is not greater than the maximum
applicable rate and the rate is approved by a majority of the
registered voters of that municipality or county voting at an
election called and held for that purpose.
(b) The ballot for an election to adopt or increase the rate
of the tax shall be printed to permit voting for or against the
proposition: "The hotel occupancy tax for the purpose of financing
__________ (insert description of appropriate purposes here) to a
maximum rate of ___________ percent (insert applicable rate)."
Sec. 363.406. EFFECTIVE DATE AND ENDING DATE OF TAX. A tax
imposed under this subchapter or a change in the tax rate takes
effect on the date prescribed by the ordinance or order imposing the
tax or changing the rate.
Sec. 363.407. DEPOSIT OF TAX REVENUE. Revenue from the tax
imposed under this subchapter shall be provided to the district by
the municipality or county imposing the tax.
SECTION 14. Section 323.105(a), Tax Code, is amended to
read as follows:
(a) Subject to an election held in accordance with the Crime
Control and Prevention District Act, a county in which a crime
control and prevention district is established may [shall] adopt a
sales and use tax in the area of the district for the purpose of
financing the operation of the crime control and prevention
district. The revenue from the tax may be used only for the purpose
of financing the operation of the crime control and prevention
district. The proposition for adopting a tax under this section and
the proposition for creation of a crime control and prevention
district shall be submitted at the same election. For purposes of
[Subsection (c) of] Section 323.101(c) [323.101 of this code], a
tax under this section is not a county sales and use tax.
SECTION 15. 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, 2005.