By: Madla S.B. No. 1339
(In the Senate - Filed March 10, 2005; March 21, 2005, read
first time and referred to Committee on Intergovernmental
Relations; April 12, 2005, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 4, Nays 0;
April 12, 2005, sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 1339 By: Madla
A BILL TO BE ENTITLED
AN ACT
relating to the limitation on the sales and use tax rate of a
political subdivision in an advanced transportation district.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 451.705, Transportation Code, is amended
to read as follows:
Sec. 451.705. SUBSEQUENT ELECTIONS. (a) If the initial
election under Section 451.702 is held only in the principal
municipality, or if the voters of a municipality or the
unincorporated area of a county do not vote to join the district at
the initial election under Section 451.702, the governing body of
the municipality or the commissioners court of the county may order
an election in the municipality or the county at a later date on the
question of joining the district, except that the election may not
be held if the governing body of the district determines that the
addition of the municipality or unincorporated area would create a
financial hardship on the district because:
(1) the territory to be added is not contiguous to the
territory of the existing district; or
(2) the addition of the territory would impair the
imposition of the sales and use tax authorized by this subchapter
[voters of a municipality do not vote to join the district at the
initial election under Section 451.702, the governing body of the
municipality may order an election in the municipality at a later
date on the question of joining the district].
(b) [If the voters of the unincorporated area of a county do
not vote to join the district at the initial election under Section
451.702, the commissioners court of the county may order an
election in the county at a later date on the question of joining
the district.
[(c)] An election ordered under this section shall be held
in the same manner as the initial election, except that the
governmental entity ordering the election shall pay the costs of
the election, and the governing body of that entity shall canvass
the vote, declare the results, and notify the district of the
results of the election.
(c) If after an election held under this subchapter, the
imposition of the district's tax would not exceed the limit imposed
by Section 451.706(a), at the election the ballot shall be prepared
to permit voting for or against substantially the following
proposition: "Joining the Advanced Transportation District and
authorizing a sales and use tax at the rate of ____ (rate imposed
elsewhere in the district)."
SECTION 2. Section 451.706, Transportation Code, is amended
by amending Subsection (b) and adding Subsection (d) to read as
follows:
(b) If the approval of the district's tax at [after] an
election held under Section 451.705 would cause [this subchapter]
the [imposition of the district's] tax in a political subdivision
to [participating unit would] exceed the limit imposed under
Subsection (a), the governing body of the political subdivision
holding an election under Section 451.705 shall prepare the ballot
to allow the voters of the subdivision to determine which portion of
other sales taxes of that subdivision will be repealed if the voters
approve joining the district [the election of a participating unit
to join the district repeals all other local sales and use taxes in
that unit], except that the following may not be reduced [for]:
(1) the sales and use tax of the authority; and
(2) a sales and use tax of not more than one percent
imposed by a municipality under Section 321.101(a) or 321.103(a),
Tax Code.
(d) At an election held under Subsection (b), the ballot
shall be prepared to permit voting for or against substantially the
following proposition: "Joining the Advanced Transportation
District, authorizing a sales and use tax at the rate of ___ (rate
imposed elsewhere in the district), and repealing ____ cents of the
following sales and use taxes used for
___________________________." Not later than the 45th day before
the election date, the governing body of the political subdivision
shall submit the ballot language to the authority for approval.
SECTION 3. 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.
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