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A BILL TO BE ENTITLED
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AN ACT
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relating to an election in certain municipalities to convert all or |
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a portion of a sales and use tax originally adopted for the purpose |
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of sports and community venues to a sales and use tax for economic |
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development purposes. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 334.089(a), Local Government Code, is |
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amended to read as follows: |
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(a) Except as provided by Section 334.090, a [A] sales and |
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use tax imposed under this subchapter may not be collected after the |
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last day of the first calendar quarter occurring after notification |
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to the comptroller by the municipality or county that the |
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municipality or county has abolished the tax or that all bonds or |
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other obligations of the municipality or county that are payable in |
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whole or in part from money in the venue project fund, including any |
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refunding bonds or other obligations, have been paid in full or the |
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full amount of money, exclusive of guaranteed interest, necessary |
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to pay in full the bonds and other obligations has been set aside in |
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a trust account dedicated to the payment of the bonds and other |
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obligations. |
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SECTION 2. Subchapter D, Chapter 334, Local Government |
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Code, is amended by adding Section 334.090 to read as follows: |
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Sec. 334.090. CONVERSION OF TAX. (a) A sales and use tax |
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imposed under this subchapter is abolished or the rate of the tax is |
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reduced, as applicable, on the date a conversion of all or a portion |
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of the tax under Section 504.263 or 505.260 takes effect. |
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(b) A municipality shall notify the comptroller of a |
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conversion described by Subsection (a) not later than the 60th day |
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before the date the conversion takes effect. |
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SECTION 3. Subchapter F, Chapter 504, Local Government |
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Code, is amended by adding Section 504.263 to read as follows: |
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Sec. 504.263. ELECTION TO CONVERT CERTAIN SALES AND USE TAX |
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AUTHORITY. (a) This section applies only to a municipality with a |
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population of more than 200,000 that borders the United Mexican |
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States and that: |
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(1) has adopted a sales and use tax under Subchapter D, |
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Chapter 334; and |
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(2) on September 1, 2019, has or will have outstanding |
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bonded indebtedness for bonds issued under Section 334.043 that are |
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payable wholly or partly from the sales and use tax. |
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(b) A municipality may convert all or a portion of a sales |
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and use tax originally adopted under Subchapter D, Chapter 334, to |
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pay for all or part of the bonds described by Subsection (a)(2) to a |
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sales and use tax under this subchapter if the conversion is |
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approved by a majority of the voters of the municipality voting at |
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an election held for that purpose. The municipality may not convert |
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any portion of the sales and use tax that, on the date the |
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municipality orders the election under Subsection (c), is pledged |
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or obligated for a purpose other than the payment of the bonds |
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described by Subsection (a)(2). |
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(c) In an election to convert all or a portion of a sales and |
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use tax as provided by this section, the ballot shall be printed to |
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provide for voting for or against the proposition: "The conversion |
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of (insert "the" or "a portion of the," as applicable) sales and use |
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tax originally adopted for the purpose of financing a sports and |
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community venue project to a (insert the appropriate tax rate that |
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is an increment of one-eighth of one percent) sales and use tax for |
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the promotion and development of new and expanded business |
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enterprises. |
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(d) For purposes of Chapter 321, Tax Code, an election under |
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this section is an election to adopt a sales and use tax under this |
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subchapter and, as applicable, to abolish or reduce the rate of the |
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tax under Subchapter D, Chapter 334. |
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(e) Notwithstanding Section 321.102, Tax Code, a conversion |
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under this section takes effect on the first day after the date all |
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bonds described by Subsection (a)(2), including any refunding bonds |
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or other obligations, have been paid in full or the full amount of |
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money, exclusive of guaranteed interest, necessary to pay in full |
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the bonds or other obligations has been set aside in a trust account |
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dedicated to the payment of the bonds or other obligations. |
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(f) Notwithstanding Section 321.405(a), Tax Code, a |
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municipality that converts all or a portion of a tax under this |
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section shall comply with Section 321.405, Tax Code, not later than |
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the 60th day before the date the conversion takes effect. |
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(g) The conversion of all or a portion of a sales and use tax |
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under this section: |
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(1) abolishes or reduces the rate of a tax adopted |
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under Chapter 334, as applicable; |
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(2) imposes a sales and use tax under this subchapter: |
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(A) at the same rate as the tax under Chapter 334 |
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was imposed, if that tax is abolished; or |
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(B) at a rate equal to the reduction in the rate |
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of the tax under Chapter 334, if that rate is reduced; and |
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(3) may not affect the combined rate of all sales and |
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use taxes imposed by political subdivisions of this state in any |
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territory in which the tax is imposed. |
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(h) If a sales and use tax conversion under this section is |
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not approved, the election does not affect the municipality's |
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authority to impose the sales and use tax adopted under Chapter 334, |
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or the rate of that tax, as provided by that chapter. |
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(i) If conversion of a portion of a sales and use tax is |
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approved under this section, the municipality may continue to |
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impose the portion of the tax under Subchapter D, Chapter 334, that |
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was not converted as provided by that chapter. |
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(j) For a tax converted under this subchapter, the election |
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requirement under Subsection (b) is satisfied and another election |
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is not required if the voters of the authorizing municipality |
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approved the conversion at an election held before the effective |
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date of the Act enacting this section under an ordinance calling the |
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election that: |
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(1) was published in a newspaper of general |
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circulation in the municipality at least 14 days before the date of |
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the election; and |
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(2) expressly stated that the election was being held |
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in anticipation of the enactment of enabling and implementing |
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legislation without further elections. |
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SECTION 4. Subchapter F, Chapter 505, Local Government |
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Code, is amended by adding Section 505.260 to read as follows: |
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Sec. 505.260. ELECTION TO CONVERT CERTAIN SALES AND USE TAX |
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AUTHORITY. (a) This section applies only to a municipality with a |
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population of more than 200,000 that borders the United Mexican |
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States and that: |
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(1) has adopted a sales and use tax under Subchapter D, |
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|
Chapter 334; and |
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|
(2) on September 1, 2019, has or will have outstanding |
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bonded indebtedness for bonds issued under Section 334.043 that are |
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|
payable wholly or partly from the sales and use tax. |
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(b) A municipality may convert all or a portion of a sales |
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and use tax originally adopted under Subchapter D, Chapter 334, to |
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pay for all or part of the bonds described by Subsection (a)(2) to a |
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sales and use tax under this subchapter if the conversion is |
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approved by a majority of the voters of the municipality voting at |
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an election held for that purpose. The municipality may not convert |
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any portion of the sales and use tax that, on the date the |
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municipality orders the election under Subsection (c), is pledged |
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or obligated for a purpose other than the payment of the bonds |
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described by Subsection (a)(2). |
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(c) In an election to convert all or a portion of a sales and |
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use tax as provided by this section, the ballot shall be printed to |
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|
provide for voting for or against the proposition: "The conversion |
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|
of (insert "the" or "a portion of the," as applicable) sales and use |
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|
tax originally adopted for the purpose of financing a sports and |
|
|
community venue project to a (insert the appropriate tax rate that |
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is an increment of one-eighth of one percent) sales and use tax for |
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economic development projects described by Chapter 505. |
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(d) For purposes of Chapter 321, Tax Code, an election under |
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this section is an election to adopt a sales and use tax under this |
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subchapter and, as applicable, to abolish or reduce the rate of the |
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tax under Subchapter D, Chapter 334. |
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(e) Notwithstanding Section 321.102, Tax Code, a conversion |
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under this section takes effect on the first day after the date all |
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bonds described by Subsection (a)(2), including any refunding bonds |
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or other obligations, have been paid in full or the full amount of |
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money, exclusive of guaranteed interest, necessary to pay in full |
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the bonds or other obligations has been set aside in a trust account |
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dedicated to the payment of the bonds or other obligations. |
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(f) Notwithstanding Section 321.405(a), Tax Code, a |
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municipality that converts all or a portion of a tax under this |
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section shall comply with Section 321.405, Tax Code, not later than |
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the 60th day before the date the conversion takes effect. |
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(g) The conversion of all or a portion of a sales and use tax |
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under this section: |
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(1) abolishes or reduces the rate of a tax adopted |
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under Chapter 334, as applicable; |
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(2) imposes a sales and use tax under this subchapter: |
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(A) at the same rate as the tax under Chapter 334 |
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was imposed, if that tax is abolished; or |
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(B) at a rate equal to the reduction in the rate |
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of the tax under Chapter 334, if that rate is reduced; and |
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(3) may not affect the combined rate of all sales and |
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use taxes imposed by political subdivisions of this state in any |
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territory in which the tax is imposed. |
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(h) If a sales and use tax conversion under this section is |
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not approved, the election does not affect the municipality's |
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authority to impose the sales and use tax adopted under Chapter 334, |
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or the rate of that tax, as provided by that chapter. |
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(i) If conversion of a portion of a sales and use tax is |
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approved under this section, the municipality may continue to |
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impose the portion of the tax under Subchapter D, Chapter 334, that |
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was not converted as provided by that chapter. |
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(j) For a tax converted under this subchapter, the election |
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requirement under Subsection (b) is satisfied and another election |
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is not required if the voters of the authorizing municipality |
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approved the conversion at an election held before the effective |
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date of the Act enacting this section under an ordinance calling the |
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election that: |
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(1) was published in a newspaper of general |
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circulation in the municipality at least 14 days before the date of |
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the election; and |
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(2) expressly stated that the election was being held |
|
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in anticipation of the enactment of enabling and implementing |
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legislation without further elections. |
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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. |