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AN ACT
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relating to certain taxes and to an annual report submitted to the |
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comptroller concerning those taxes. |
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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 or county shall notify the comptroller of |
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a 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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(c) The abolition or reduction by a county of the rate of a |
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sales and use tax imposed under this section shall be included in |
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the report submitted to the comptroller by the county under Section |
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352.009. |
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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: |
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(1) a municipality with a population of more than |
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200,000 that borders the United Mexican States and that: |
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(A) has adopted a sales and use tax under |
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Subchapter D, Chapter 334; and |
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(B) on September 1, 2019, has or will have |
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outstanding bonded indebtedness for bonds issued under Section |
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334.043 that are payable wholly or partly from the sales and use |
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tax; or |
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(2) a county that borders the United Mexican States |
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that: |
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(A) has a population of less than 300,000; and |
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(B) contains one or more municipalities with a |
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population of 200,000 or more that hold an annual jalapeño |
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festival. |
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(b) A municipality or county may convert all or a portion of |
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a sales and use tax originally adopted under Subchapter D, Chapter |
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334, to a sales and use tax under this subchapter if the conversion |
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is approved by a majority of the voters of the municipality or |
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county voting at an election held for that purpose. |
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(c) In an election to convert all or a portion of a municipal |
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sales and use tax as provided by this section, the ballot shall be |
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printed to provide for voting for or against the proposition: "The |
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conversion of (insert "the" or "a portion of the," as applicable) |
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sales and use tax originally adopted for the purpose of financing a |
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sports and community venue project to a (insert the appropriate tax |
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rate that is an increment of one-eighth of one percent) sales and |
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use tax for the promotion and development of new and expanded |
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business 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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by a municipality under this section takes effect on the first day |
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after the date all bonds described by Subsection (a)(1)(B), |
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including any refunding bonds, have been paid in full or the full |
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amount of money, exclusive of guaranteed interest, necessary to pay |
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the bonds in full has been set aside in a trust account dedicated to |
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the payment of the bonds. |
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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 Subchapter D, Chapter 334, as applicable; and |
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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 Subchapter |
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D, Chapter 334, 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 Subchapter D, Chapter 334, if that rate is reduced. |
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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 county's or |
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municipality's authority to impose the sales and use tax adopted |
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under Chapter 334, or the rate of that tax, as provided by that |
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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 county or municipality may |
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continue to impose the portion of the tax under Subchapter D, |
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Chapter 334, that was not converted as provided by that chapter. |
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(j) For a municipal tax converted under this subchapter, the |
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election requirement under Subsection (b) is satisfied and another |
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election is not required if the voters of the authorizing |
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municipality approved the conversion at an election called or held |
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before the effective date of the Act enacting this section under an |
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ordinance calling the 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 |
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called or held in anticipation of the enactment of enabling and |
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implementing 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: |
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(1) a municipality with a population of more than |
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200,000 that borders the United Mexican States and that: |
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|
(A) has adopted a sales and use tax under |
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|
Subchapter D, Chapter 334; and |
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|
(B) on September 1, 2019, has or will have |
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|
outstanding bonded indebtedness for bonds issued under Section |
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334.043 that are payable wholly or partly from the sales and use |
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tax; or |
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(2) a county that borders the United Mexican States |
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that: |
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(A) has a population of less than 300,000; and |
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(B) contains one or more municipalities with a |
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population of 200,000 or more that hold an annual jalapeño |
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festival. |
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(b) A municipality or county may convert all or a portion of |
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a sales and use tax originally adopted under Subchapter D, Chapter |
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334, to a sales and use tax under this subchapter if the conversion |
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is approved by a majority of the voters of the municipality or |
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county voting at an election held for that purpose. |
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(c) In an election to convert all or a portion of a municipal |
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sales and use tax as provided by this section, the ballot shall be |
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printed to provide for voting for or against the proposition: "The |
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conversion of (insert "the" or "a portion of the," as applicable) |
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|
sales and use tax originally adopted for the purpose of financing a |
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sports and community venue project to a (insert the appropriate tax |
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rate that is an increment of one-eighth of one percent) sales and |
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use tax for economic development projects described by Chapter |
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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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by a municipality under this section takes effect on the first day |
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after the date all bonds described by Subsection (a)(1)(B), |
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including any refunding bonds, have been paid in full or the full |
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amount of money, exclusive of guaranteed interest, necessary to pay |
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the bonds in full has been set aside in a trust account dedicated to |
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the payment of the bonds. |
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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 Subchapter D, Chapter 334, as applicable; and |
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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 Subchapter |
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D, Chapter 334, 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 Subchapter D, Chapter 334, if that rate is reduced. |
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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 county's or |
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municipality's authority to impose the sales and use tax adopted |
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under Chapter 334, or the rate of that tax, as provided by that |
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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 county or municipality may |
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continue to impose the portion of the tax under Subchapter D, |
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Chapter 334, that was not converted as provided by that chapter. |
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(j) For a municipal tax converted under this subchapter, the |
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election requirement under Subsection (b) is satisfied and another |
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election is not required if the voters of the authorizing |
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municipality approved the conversion at an election called or held |
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before the effective date of the Act enacting this section under an |
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ordinance calling the 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 |
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called or held in anticipation of the enactment of enabling and |
|
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implementing legislation without further elections. |
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SECTION 5. Subchapter A, Chapter 352, Tax Code, is amended |
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by adding Section 352.009 to read as follows: |
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Sec. 352.009. ANNUAL REPORT TO COMPTROLLER. (a) Not later |
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than February 20 of each year, a county that imposes the tax |
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authorized by this chapter shall report to the comptroller: |
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(1) the rate of: |
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(A) the tax imposed by the county under this |
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chapter; and |
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(B) if applicable, the tax imposed by the county |
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under Subchapter H, Chapter 334, Local Government Code; and |
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(2) the amount of revenue collected during the |
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county's preceding fiscal year from: |
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(A) the tax imposed by the county under this |
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chapter; and |
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(B) if applicable, the tax imposed by the county |
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under Subchapter H, Chapter 334, Local Government Code. |
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(b) The county must make the report required by this section |
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by: |
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(1) submitting the report to the comptroller on a form |
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prescribed by the comptroller; or |
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(2) providing the comptroller a direct link to, or a |
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clear statement describing the location of, the information |
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required to be reported that is posted on the Internet website of |
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the county. |
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(c) Subject to Subsection (b)(2), the comptroller shall |
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prescribe the form a county must use for the report required to be |
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submitted under this section. |
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(d) The comptroller may adopt rules necessary to administer |
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this section. |
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SECTION 6. As soon as practicable, but not later than |
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January 1, 2020, the comptroller of public accounts shall prescribe |
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the form required by Section 352.009(c), Tax Code, as added by this |
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Act. |
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SECTION 7. A county shall submit the initial report or |
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otherwise provide the initial information required by Section |
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352.009, Tax Code, as added by this Act, not later than February 20, |
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2020. |
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SECTION 8. 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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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 1319 passed the Senate on |
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April 17, 2019, by the following vote: Yeas 31, Nays 0; and that |
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the Senate concurred in House amendment on May 23, 2019, by the |
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following vote: Yeas 30, Nays 1. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 1319 passed the House, with |
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amendment, on May 21, 2019, by the following vote: Yeas 146, |
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Nays 0, one present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |