| TO: | Honorable Fred Hill, Chair, House Committee on Local Government Ways & Means |
| FROM: | John S. O'Brien, Director, Legislative Budget Board |
| IN RE: | HB3417 by Garcia (Relating to the sales and use tax imposed by municipal crime control and prevention districts.), As Introduced |
The bill would amend various sections of the Local Government Code and create a new section of the Tax Code, relating to the sales and use tax imposed by municipal crime control and prevention districts. The bill would create a separate section in Chapter 321 of the Tax Code to govern the crime control and prevention districts that are created in municipalities and make conforming changes in Chapter 363 of the Local Government Code.
In regards to the administration of the new section, the bill would allow the governing body of the municipality to adopt orders and the Comptroller of Public Accounts to adopt rules. Furthermore, the bill would require the Comptroller to implement any changes necessary as a result of the bill on or before January 1, 2008.
According to the Comptroller, the districts' tax collections would not be expected to change as the tax rates that could be adopted would remain the same and assuming that the districts' tax would not apply to residential electricity or gas services.
The bill would take effect immediately upon enactment if it receives two-thirds vote in each house; otherwise, it would take effect September 1, 2007.
| Source Agencies: | 304 Comptroller of Public Accounts
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| LBB Staff: | JOB, CT, SD, EB
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