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A BILL TO BE ENTITLED
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AN ACT
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relating to authorizing the Midland County Hospital District of |
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Midland County, Texas, to impose a sales and use tax. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 1061, Special District Local Laws Code, |
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is amended by adding Subchapter G to read as follows: |
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SUBCHAPTER G. SALES AND USE TAX |
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Sec. 1061.301. TAX AUTHORIZED. (a) The district may adopt, |
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change the rate of, or abolish a sales and use tax at an election |
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held in the district. |
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(b) The district may not adopt a tax under this subchapter |
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or increase the rate of the tax if as a result of the adoption of the |
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tax or the tax increase the combined rate of all sales and use taxes |
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imposed by the district and all other political subdivisions of |
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this state having territory in the district would exceed two |
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percent in any location in the district. |
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Sec. 1061.302. APPLICABILITY OF OTHER LAW. Except to the |
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extent that a provision of this subchapter applies, Chapter 323, |
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Tax Code, applies to a tax authorized by this subchapter in the same |
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manner as that chapter applies to the tax authorized by that |
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chapter. |
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Sec. 1061.303. TAX RATE; CHANGE IN RATE. (a) The district |
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may impose a tax authorized by this subchapter in increments of |
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one-eighth of one percent, with a minimum rate of one-eighth of one |
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percent and a maximum rate of two percent. |
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(b) The district may increase the rate of a tax authorized |
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by this subchapter to a maximum of two percent or decrease the rate |
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of the tax to a minimum of one-eighth of one percent if the change is |
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approved by a majority of the voters of the district at an election |
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called for that purpose. |
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Sec. 1061.304. ELECTION PROCEDURE. An election to adopt, |
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change the rate of, or abolish a tax authorized by this subchapter |
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is called by the adoption of an order of the board. The board may |
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call an election on its own motion and shall call an election if a |
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number of qualified voters in the district equal to at least five |
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percent of the number of registered voters in the district |
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petitions the board to call the election. |
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Sec. 1061.305. ELECTION IN OTHER TAXING AUTHORITY. (a) In |
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this section, "taxing authority" means any entity authorized to |
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impose a local sales and use tax. |
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(b) If the district is included within the boundaries of |
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another taxing authority and the adoption or increase in the rate of |
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a tax under this subchapter would result in a combined tax rate by |
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the district and other political subdivisions of this state of more |
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than two percent at any location in the district, an election to |
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approve or increase the rate of the tax has no effect unless: |
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(1) one or more of the other taxing authorities holds |
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an election in accordance with the law governing that authority on |
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the same date as the election under this subchapter to reduce the |
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tax rate of that authority to a rate that will result in a combined |
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tax rate by the district and other political subdivisions of not |
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more than two percent at any location in the district; and |
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(2) the combined tax rate is reduced to not more than |
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two percent as a result of that election. |
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(c) This section does not permit a taxing authority to |
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impose taxes at differential tax rates within the territory of the |
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authority. |
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Sec. 1061.306. TAX EFFECTIVE DATE. (a) The adoption, |
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change in the rate of, or abolition of a tax under this subchapter |
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takes effect on the first day of the first calendar quarter |
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occurring after the expiration of the first complete calendar |
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quarter occurring after the date on which the comptroller receives |
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notice of the results of an election to adopt, change the rate of, |
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or abolish the tax. |
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(b) If the comptroller determines that an effective date |
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provided by Subsection (a) will occur before the comptroller can |
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reasonably take the action required to begin collecting the tax or |
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to implement the change in the rate of the tax or the abolition of |
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the tax, the effective date may be extended by the comptroller until |
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the first day of the next calendar quarter. |
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Sec. 1061.307. USE OF TAX REVENUE. Revenue from a tax |
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imposed under this subchapter may be used by the district for any |
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purpose of the district authorized by law. |
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SECTION 2. Section 1061.151(b), Special District Local Laws |
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Code, is amended to read as follows: |
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(b) The proposed budget must contain a complete financial |
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statement of: |
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(1) the outstanding obligations of the district; |
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(2) the cash on hand in each district fund; |
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(3) the money received by the district from all |
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sources during the previous year; |
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(4) the money available to the district from all |
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sources during the ensuing year; |
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(5) the balances expected at the end of the year in |
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which the budget is being prepared; |
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(6) the estimated revenue and balances available to |
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cover the proposed budget; |
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(7) the estimated ad valorem tax rate required; and |
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(8) the proposed expenditures and disbursements and |
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the estimated receipts and collections for the following fiscal |
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year. |
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SECTION 3. The heading to Subchapter F, Chapter 1061, |
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Special District Local Laws Code, is amended to read as follows: |
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SUBCHAPTER F. AD VALOREM TAXES |
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SECTION 4. Section 26.012(1), Tax Code, is amended to read |
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as follows: |
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(1) "Additional sales and use tax" means an additional |
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sales and use tax imposed by: |
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(A) a city under Section 321.101(b); |
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(B) a county under Chapter 323; or |
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(C) a hospital district, other than a hospital |
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district: |
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(i) created on or after September 1, 2001, |
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that: |
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(a) [(i)] imposes the sales and use |
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tax under Subchapter I, Chapter 286, Health and Safety Code; or |
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(b) [(ii)] imposes the sales and use |
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tax under Subchapter L, Chapter 285, Health and Safety Code; or |
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(ii) that imposes the sales and use tax |
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under Subchapter G, Chapter 1061, Special District Local Laws Code. |
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SECTION 5. 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, 2019. |
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* * * * * |