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A BILL TO BE ENTITLED
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AN ACT
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relating to an authorization to increase the sales and use tax |
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collected in an advanced transportation district of a metropolitan |
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rapid transit authority. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 451.405(a), Transportation Code, is |
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amended to read as follows: |
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(a) Except as provided by Section 451.706, an [An] authority |
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may not adopt a sales and use tax rate, including a rate increase, |
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that when combined with the rates of all sales and use taxes imposed |
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by other political subdivisions of the state having territory in |
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the authority exceeds two percent in any location in the authority. |
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SECTION 2. Sections 451.702(a) and (e), Transportation |
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Code, are amended to read as follows: |
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(a) The board of an authority in which the sales and use tax |
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is imposed at a rate of one-half of one percent and in which the |
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principal municipality has a population of more than 1.3 million |
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may order an election to create an advanced transportation district |
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within the authority's boundaries and to impose a sales and use tax |
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for advanced transportation and mobility enhancement under this |
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subchapter. If approved at the election, the rate of the initial |
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sales and use tax for advanced transportation and mobility |
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enhancement shall be set by the governing body of the district at a |
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rate of: |
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(1) one-eighth of one percent; |
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(2) one-fourth of one percent; |
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(3) three-eighths of one percent; or |
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(4) one-half of one percent. |
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(e) The proceeds of the sales and use tax imposed under this |
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subchapter [section] shall be used by the district only for: |
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(1) advanced transportation and mobility enhancement |
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purposes as provided by Subsections (f)-(j); and |
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(2) reimbursement to the authority for the cost of an |
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election held under this section. |
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SECTION 3. Subchapter O, Chapter 451, Transportation Code, |
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is amended by adding Section 451.7051 to read as follows: |
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Sec. 451.7051. RATE INCREASE: SALES AND USE TAX. (a) The |
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board of an authority containing a district may order an election to |
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increase the district's sales and use tax rate by any rate that is |
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an increment of one-eighth of one percent, not to exceed one-half of |
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one percent. |
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(b) The registered voters of the district, by petition, may |
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require an election to increase the district's sales and use tax |
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rate by a rate described by Subsection (a). |
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(c) A petition to increase the rate of the district's sales |
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and use tax is valid only if it is submitted to the board and signed |
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by at least 10 percent of the district's registered voters as |
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determined by the most recent official list of registered voters. |
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(d) The board shall submit a petition for an election to |
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increase the district's sales and use tax rate to the secretary of |
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state. |
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(e) The secretary of state shall determine the validity of a |
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petition not later than the 30th day after the date the petition is |
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received by the secretary and shall notify the board of the result |
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of the determination. |
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(f) The board shall call an election to increase the tax |
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rate if the secretary determines that a petition is valid or if the |
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secretary fails to act within the period required by Subsection |
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(e). |
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(g) The authority shall pay the costs of determining the |
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validity of a petition and the costs of the election. |
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(h) In an election for the increase of a district's sales |
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and use tax rate, the ballots shall be printed to provide for voting |
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for or against the following proposition: "The increase of the |
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district's sales and use tax rate to a rate of (insert appropriate |
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rate)." |
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(i) If a majority of the votes received in an election to |
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increase the rate of a district's sales and use tax favor the |
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proposition, the rate change takes effect as provided by Section |
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451.706(c). |
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(j) The authority shall send a notice of the election and a |
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certified copy of the order canvassing the results of the election |
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to the Texas Department of Transportation and the comptroller. The |
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authority shall file a notice and a certified copy of the order in |
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the deed records of each county in which the district is located in |
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the same manner as the results of a confirmation election are filed. |
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(k) An election by an authority to increase the rate of the |
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district's sales and use tax has no effect if: |
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(1) the voters of the district approve the district's |
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sales and use tax rate or rate increase at an election held on the |
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same day on which a municipality or county having territory within |
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the district adopts a sales and use tax or an additional sales and |
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use tax; and |
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(2) the combined rates of all sales and use taxes |
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imposed by the district and other political subdivisions of the |
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state would exceed 2.5 percent in any location in the district. |
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SECTION 4. Section 451.706(a), Transportation Code, is |
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amended to read as follows: |
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(a) A district may not adopt or increase a sales and use tax |
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rate if, as a result of the adoption or increase, the [The] combined |
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rate of all sales and use taxes imposed by the district and all |
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other political subdivisions of this state would [may not] exceed |
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2.5 [two] percent in any location in the district. |
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SECTION 5. This Act takes effect September 1, 2019. |