BILL ANALYSIS |
C.S.H.B. 3159 |
By: Isaac |
Ways & Means |
Committee Report (Substituted) |
BACKGROUND AND PURPOSE
Interested parties note that, under current law, when a city annexes territory served by an emergency services district but does not provide emergency services, the city risks being unable to collect sales tax revenue in the newly annexed territory.
C.S.H.B. 3159 seeks to address this problem and allow for a more equitable distribution of sales tax revenue in territory annexed by a municipality that is also served by an emergency services district by making certain statutory changes relating to an agreement to allocate sales and use tax after annexation and to the provision of emergency services in the annexed area.
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RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
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ANALYSIS
C.S.H.B. 3159 amends the Health and Safety Code to authorize a municipality and an emergency services district, before or after the municipality annexes for full purposes part of a district that imposes a sales and use tax without removing the annexed area from the district, to agree on an allocation between the municipality and the district of revenue from the sales and use tax imposed in the annexed area. The bill requires the comptroller of public accounts, under policies and procedures that the comptroller considers reasonable, to pay the amounts agreed to between those entities.
C.S.H.B. 3159 provides that a municipality that enters into an allocation agreement is not required to provide emergency services in the annexed territory and clarifies that the bill's provisions regarding provision of those services control in the case of a conflict with Local Government Code provisions relating to the provision of services to an annexed area or with any other law. The bill establishes that the Tax Code provision relating to withholding part of a municipality's monthly sales and use tax allocation following a reduction in the sales and use tax rate of a local government entity located in or annexed by the municipality does not apply in the case of an agreement made under the bill's provisions.
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EFFECTIVE DATE
September 1, 2013.
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COMPARISON OF ORIGINAL AND SUBSTITUTE
While C.S.H.B. 3159 may differ from the original in minor or nonsubstantive ways, the following comparison is organized and highlighted in a manner that indicates the substantial differences between the introduced and committee substitute versions of the bill.
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