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A BILL TO BE ENTITLED
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AN ACT
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relating to the allocation of sales and use tax after a municipality |
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annexes land in an emergency services district and to the provision |
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of emergency services in that area. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 775.0753(c), Health and Safety Code, is |
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amended to read as follows: |
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(c) Except as provided by Sections 775.0754 and 775.0755, |
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the [The] provisions of Section 321.102, Tax Code, governing the |
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application of a municipal sales and use tax in the event of a |
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change in the boundaries of a municipality apply to the application |
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of a tax imposed under this chapter in the event of a change in the |
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district's boundaries. |
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SECTION 2. Subchapter E, Chapter 775, Health and Safety |
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Code, is amended by adding Sections 775.0754 and 775.0755 to read as |
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follows: |
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Sec. 775.0754. SALES AND USE TAX AGREEMENT WITH |
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MUNICIPALITY AFTER ANNEXATION. (a) This section applies when: |
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(1) a municipality annexes for full purposes part of a |
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district that imposes a sales and use tax; and |
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(2) the annexed area is not removed from the district. |
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(b) The municipality and the district may, before or after |
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the annexation, agree on an allocation between the municipality and |
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the district of revenue from the sales and use tax imposed in the |
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annexed area. |
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(c) Under policies and procedures that the comptroller |
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considers reasonable, the comptroller shall pay the amounts agreed |
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to between the municipality and the district. |
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(d) A municipality that enters into an agreement under this |
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section is not required to provide emergency services in that |
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annexed territory. To the extent of a conflict between this |
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subsection and Section 43.056, Local Government Code, or any other |
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law, this subsection controls. |
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(e) Section 321.102(f), Tax Code, does not apply if the |
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municipality and the district enter into an agreement under this |
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section. |
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Sec. 775.0755. SALES AND USE TAX ALLOCATION BY COMPTROLLER |
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AFTER MUNICIPAL ANNEXATION. (a) This section applies when: |
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(1) a municipality annexes for full purposes part of a |
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district that imposes a sales and use tax; |
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(2) the annexed area is not removed from the district; |
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and |
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(3) the municipality and the district do not enter |
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into an agreement under Section 775.0754(b). |
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(b) The sales and use tax rate for the municipality and the |
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sales and use tax rate for the district in the annexed area shall |
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both be reduced in an amount equal to one-half of the amount that |
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the combined sales and use tax rate in the area from all sources |
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exceeds two percent. |
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(c) Under policies and procedures that the comptroller |
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considers reasonable, the comptroller shall pay the revenue from |
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the sales and use tax imposed in the annexed area based on the tax |
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rates determined under this section. |
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(d) A municipality that is a party to an allocation under |
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this section is not required to provide emergency services in that |
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annexed territory. To the extent of a conflict between this |
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subsection and Section 43.056, Local Government Code, or any other |
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law, this subsection controls. |
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(e) Section 321.102(f), Tax Code, does not apply to an |
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allocation made under this section. |
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SECTION 3. This Act takes effect September 1, 2013. |