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A BILL TO BE ENTITLED
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AN ACT
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relating to county assistance districts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 387.003, Local Government Code, is |
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amended to read as follows: |
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Sec. 387.003. CREATION AND FUNCTIONS OF DISTRICT. (a) The |
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commissioners court of the county may call an election on the |
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question of creating a county assistance district under this |
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chapter. More than one county assistance district may be created in |
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a county. |
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(a-1) [to] A district may perform the following functions |
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[in the district]: |
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(1) the construction, maintenance, or improvement of |
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roads or highways; |
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(2) the provision of law enforcement and detention |
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services; |
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(3) the maintenance or improvement of libraries, |
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museums, parks, or other recreational facilities; |
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(4) the provision of services that benefit the public |
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health or welfare, including the provision of firefighting and fire |
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prevention services; or |
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(5) the promotion of economic development and tourism. |
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(b) The order calling the election must: |
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(1) define the boundaries of the district to include |
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any portion of the county in which the combined tax rate of all |
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local sales and use taxes imposed, including the rate to be imposed |
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by the district if approved at the election, would not exceed the |
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limits on the combined rate of sales and use taxes of the county, |
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municipalities, and political subdivisions of this state under |
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Sections 321.101 and 323.101, Tax Code [two percent]; and |
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(2) call for the election to be held within those |
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boundaries. |
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(b-1) If the proposed district includes any territory of a |
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municipality, the commissioners court shall send notice by |
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certified mail to the governing body of the municipality of the |
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commissioners court's intent to create the district. If the |
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municipality has created a development corporation under Section 4A |
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or 4B, Development Corporation Act of 1979 (Article 5190.6, |
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Vernon's Texas Civil Statutes), the commissioners court shall also |
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send the notice to the board of directors of the corporation. The |
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commissioners court must send the notice not later than the 60th day |
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before the date the commissioners court orders the election. The |
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governing body of the municipality may exclude the territory of the |
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municipality from the proposed district by sending notice by |
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certified mail to the commissioners court of the governing body's |
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desire to exclude the municipal territory from the district. The |
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governing body must send the notice not later than the 45th day |
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after the date the governing body receives notice from the |
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commissioners court under this subsection. The territory of a |
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municipality that is excluded under this subsection may |
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subsequently be included in the district in an election held under |
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Subsection (f) with the consent of the municipality or in another |
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district after following the procedures of this subsection. |
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(c) The ballot at the election must be printed to permit |
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voting for or against the proposition: "Authorizing the creation |
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of the _____ County Assistance District No. _____ (insert name of |
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district) and the imposition of a sales and use tax at the rate of |
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_____ of one percent (insert one-eighth, one-fourth, |
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three-eighths, or one-half, as appropriate) for the purpose of |
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financing the operations of the district." |
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(d) The district is created if a majority of the votes |
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received at the election favor the creation of the district. |
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(e) If a majority of the votes received at the election are |
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against the creation of the district, then the district is not |
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created and the county may call other elections [another election] |
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on the questions [question] of creating [a] county assistance |
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districts [district may not be held in the county before the first
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anniversary of the most recent election concerning the creation of
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a district]. |
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(f) The commissioners court may call an election to be held |
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in an area of the county that is not located in a district created |
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under this section to determine whether the area should be included |
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in the district and whether the district's sales and use tax should |
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be imposed in the area. An election may not be held in an area in |
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which the combined tax rate of all local sales and use taxes |
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imposed, including the rate to be imposed by the district if |
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approved at the election, would exceed the limits on the combined |
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rate of sales and use taxes of the county, municipalities, and |
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political subdivisions of this state under Sections 321.101 and |
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323.101, Tax Code [two percent]. |
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(g) The area in which an election is held under Subsection |
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(f) is included in the district and the sales and use tax is imposed |
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if a majority of the votes received at the election favor inclusion |
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in the district and imposition of the sales and use tax. |
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(h) If more than one election to authorize a local sales and |
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use tax is held on the same day in the area of a proposed district or |
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an area proposed to be added to a district and if the resulting |
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approval by the voters would cause the imposition of a local sales |
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and use tax in any area to exceed the limits on the combined rate of |
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sales and use taxes of the county, municipalities, and political |
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subdivisions of this state under Sections 321.101 and 323.101, Tax |
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Code [two percent], only a tax authorized at an election under this |
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section may be imposed. |
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(i) In addition to the authority to include an area in a |
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district under subsection (f), the governing body of a district by |
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order may include an area in the district upon receipt of a petition |
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or petitions signed by a majority in value of the owners of land in |
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the area to be included. If there are no qualified voters residing |
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in the area to be included, then no election is required. |
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(j) The commissioners court may exclude an area from a |
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district by order if the district has no outstanding bonds payable |
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in whole or in part from sales and use taxes and the exclusion does |
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not impair any outstanding district debt or contractual obligation |
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while any district debt or contractual obligation remains |
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outstanding. |
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SECTION 2. Section 387.005, Local Government Code, is |
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amended to read as follows: |
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Sec. 387.005. GOVERNING BODY. (a) The commissioners court |
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of the county in which the district is created shall provide by |
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order that: |
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(1) the commissioners court is the governing body of |
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the district; or |
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(2) a governing body of the district shall be |
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appointed by the commissioners court. |
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(b) A member of the [commissioners court] governing body of |
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the district is not entitled to compensation for service [on the
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governing body of the district] but is entitled to reimbursement |
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for actual and necessary expenses. |
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(c) A governing body appointed by the commissioners court |
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under this section shall consist of five directors who serve |
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staggered terms of four years. To be qualified to serve as a |
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director, a person shall be at least 18 years old and a resident |
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citizen of the county in which the district is located. The initial |
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directors shall draw lots to achieve staggered terms, with three of |
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the directors serving two year terms and two of the directors |
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serving four year terms. |
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SECTION 3. Section 387.006, Local Government Code, is |
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amended to read as follows: |
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Sec. 387.006. GENERAL POWERS OF DISTRICT. (a) A district |
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may: |
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(1) perform any act necessary to the full exercise of |
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the district's functions; |
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(2) accept a grant or loan from: |
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(A) the United States; |
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(B) an agency or political subdivision of this |
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state; or |
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(C) a public or private person; |
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(3) acquire, sell, lease, convey, or otherwise dispose |
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of property or an interest in property under terms determined by the |
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district; |
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(4) employ necessary personnel; [and] |
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(5) adopt rules to govern the operation of the |
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district and its employees and property; and |
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(6) enter into agreements with municipalities |
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necessary or convenient for the full exercise of the district's |
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functions, including agreements regarding the duration, rate and |
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allocation between the district and the municipality of sales and |
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use taxes. |
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(b) A district may contract with a public or private person |
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to perform any act the district is authorized to perform under this |
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chapter. |
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(c) A district may not levy an ad valorem tax. |
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SECTION 4. Section 387.007, Local Government Code, is |
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amended to read as follows: |
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Sec. 387.007. SALES AND USE TAX. (a) A district by order |
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may impose a sales and use tax under this chapter to finance the |
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operations of the district only if the tax is approved at an |
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election held under Section 387.003. |
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(b) A district may not adopt a sales and use tax under this |
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chapter if the adoption of the tax would result in a combined tax |
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rate of all local sales and use taxes that would exceed the limits |
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under Sections 321.101 and 323.101, Tax Code [of more than two
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percent] in any location in the district. |
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(c) A district may define areas within the district and |
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impose different rates of sales and use tax within each area, |
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provided that no sales and use tax rate exceeds the rate approved at |
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an election held under Section 387.003. |
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SECTION 5. Section 387.009, Local Government Code, is |
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amended to read as follows: |
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Sec. 387.009. TAX RATE. The rate of a tax adopted under |
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this chapter must be in increments of one-eighth, one-fourth, |
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three-eighths, or one-half of one percent. |
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SECTION 6. Section 387.010, Local Government Code, is |
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amended to read as follows: |
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Sec. 387.010. REPEAL OR RATE CHANGE. (a) A district that |
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has adopted a sales and use tax under this chapter may, by order and |
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subject to Section 387.007(b), [change] reduce the rate of the tax |
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or repeal the tax without an election, provided that the district |
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may not repeal the sales and use tax or reduce the rate of the sales |
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and use tax below the amount pledged to secure payment of any |
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outstanding district debt or contractual obligation while any |
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district debt or contractual obligation remains outstanding. A |
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district may, by order and subject to Section 387.007(b), increase |
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the rate of the sales and use tax, provided that the increased rate |
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does not exceed the rate approved at an election held under Section |
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387.003. If the increased rate of the sales and use tax exceeds the |
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rate approved at an election held under Section 387.003, then a |
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district may, by order and subject to Section 387.007(b), increase |
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the rate if the increase [change or repeal] is approved by a |
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majority of the votes received in the district at an election held |
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for that purpose. |
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(b) The tax may be changed under Subsection (a) in one or |
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more increments of one-eighth of one percent [to a maximum of
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one-half of one percent]. |
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(c) The ballot for an election to [change] increase the tax |
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shall be printed to permit voting for or against the proposition: |
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"The [change] increase of a sales and use tax for the _____ County |
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Assistance District No. _____ (insert name of district) from the |
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rate of _____ of one percent (insert in increments of one-eighth, |
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one-fourth, three-eighths, or one-half, as appropriate) to the rate |
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of _____ of one percent (insert in increments of one-eighth, |
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one-fourth, three-eighths, or one-half, as appropriate)." |
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(d)
The ballot for the election to repeal the tax shall be
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printed to permit voting for or against the proposition:
"The
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repeal of the sales and use tax for financing the ________ County
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Assistance District (insert name of district)."
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SECTION 7. Section 387.012, Local Government Code, is |
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amended to read as follows: |
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Sec. 387.012. EFFECTIVE DATE OF TAX. The adoption of the |
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tax, the [change] increase or reduction of the tax rate, or the |
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repeal of the tax takes effect on the first day of the first |
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calendar quarter occurring after the expiration of the first |
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complete quarter occurring after the date the comptroller receives |
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a [notice of the results of the election] copy of the order of the |
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governing body adopting, [changing] increasing, reducing, or |
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repealing the tax. |
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SECTION 8. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2009. |