Honorable Tom Craddick, Speaker of the House, House of Representatives
FROM:
John S. O'Brien, Director, Legislative Budget Board
IN RE:
HB1720 by McReynolds (Relating to the counties eligible to create a county assistance district that may impose a sales and use tax.), As Passed 2nd House
No fiscal implication to the State is anticipated.
The bill would repeal Section 387.002, Local Government Code, to remove the criteria for determining eligibility of a county to create a county assistance district that may impose a sales and use tax, thus authorizing all counties to create a district. In addition, the bill would add firefighting and fire prevention services to the functions a district would be authorized to perform. Various administrative requirements of the county commissioners court calling an election to establish a district would be added. An election regarding establishing a district would not be allowed in an area in which the combined tax rate of all local sales and use taxes imposed, including the rate to be imposed by a district, would exceed 2 percent.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.