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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of voters of certain municipalities to |
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extend or change the purposes of a sales and use tax for certain |
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economic development corporations. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 4B(e), Development Corporation Act of |
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1979 (Article 5190.6, Vernon's Texas Civil Statutes) is amended to |
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read as follows: |
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(e) The rate of a tax adopted under this section must be |
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one-eighth, one-fourth, three-eighths, or one-half of one percent. |
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The ballot proposition at the election held to adopt the tax must |
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specify the rate of the tax to be adopted. At an election called and |
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held under Subsection (d) of this section, the city may also allow |
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the voters to vote on a ballot proposition that limits the length of |
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time that a sales and use tax may be imposed. A city that has |
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imposed a tax for a limited time frame may later extend the period |
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of the tax's imposition or reimpose the tax if authorized by a |
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majority of the qualified voters of the city voting in an election |
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called and held for that purpose, in accordance with Section 4A(n). |
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Additionally, at an election called and held under Subsection (d) |
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of this section, the city may also allow the voters to vote on a |
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ballot proposition that limits the use of the sales and use tax to a |
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specific project. A corporation that has been created to perform a |
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specific project under this subsection may retain its corporate |
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existence and perform other projects as may be approved by the |
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voters of the city under an election called and held for that |
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purpose, in accordance with Sections 4A(o) and (r). A corporation |
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that holds an election to reduce or abolish a tax imposed under |
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Section 4A of this Act may in the same or in a separate proposition |
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on the same ballot adopt a tax under this section. If an eligible |
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city adopts the tax, a tax is imposed on the receipts from the sale |
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at retail of taxable items within the eligible city at the rate |
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approved at the election. There is also imposed an excise tax on |
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the use, storage, or other consumption within the eligible city of |
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tangible personal property purchased, leased, or rented from a |
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retailer during the period that the tax is effective within the |
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eligible city. The rate of the excise tax is the same as the rate of |
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the sales tax portion of the tax and is applied to the sale price of |
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the tangible personal property. |
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SECTION 2. LEGISLATIVE FINDINGS. The legislature finds |
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that: all requirements of the constitution and laws of this State |
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and the rules and procedures of the legislature with respect to the |
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notice, introduction, and passage of this Act have been fulfilled |
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and accomplished. |
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SECTION 3. EFFECTIVE DATE. This Act takes effect |
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immediately if it receives a vote of two-thirds of all the members |
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elected to each house, as provided by Section 39, Article III, Texas |
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Constitution. If this Act does not receive the vote necessary for |
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immediate effect, this Act takes effect September 1, 2007. |