Bill Text: TX HB4748 | 2019-2020 | 86th Legislature | Comm Sub
Bill Title: Relating to the authority of the Near Northside Management District to impose a sales and use tax and finance a project or service.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Engrossed - Dead) 2019-05-26 - Senate passage as amended reported [HB4748 Detail]
Download: Texas-2019-HB4748-Comm_Sub.html
By: Dutton (Senate Sponsor - Miles) | H.B. No. 4748 | |
(In the Senate - Received from the House May 13, 2019; | ||
May 14, 2019, read first time and referred to Committee on | ||
Intergovernmental Relations; May 20, 2019, reported adversely, | ||
with favorable Committee Substitute by the following vote: Yeas 7, | ||
Nays 0; May 20, 2019, sent to printer.) | ||
COMMITTEE SUBSTITUTE FOR H.B. No. 4748 | By: Alvarado |
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relating to the authority of the Near Northside Management District | ||
to impose a sales and use tax and finance a project or service. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 3905.151, Special District Local Laws | ||
Code, is amended to read as follows: | ||
Sec. 3905.151. PETITION REQUIRED FOR FINANCING SERVICES AND | ||
IMPROVEMENTS. (a) The board may not finance a service or an | ||
improvement project under this chapter unless a written petition | ||
requesting that service or improvement is filed with the board. | ||
(b) The petition must be signed by[ |
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the assessed value of real property in the district according to the | ||
most recent certified tax appraisal roll for the county[ |
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SECTION 2. Chapter 3905, Special District Local Laws Code, | ||
is amended by adding Subchapter F to read as follows: | ||
SUBCHAPTER F. SALES AND USE TAX | ||
Sec. 3905.251. APPLICABILITY OF CERTAIN TAX CODE | ||
PROVISIONS. (a) Chapter 321, Tax Code, governs the imposition, | ||
computation, administration, enforcement, and collection of the | ||
sales and use tax authorized by this subchapter except to the extent | ||
Chapter 321, Tax Code, is inconsistent with this chapter. | ||
(b) For the purposes of this subchapter, a reference in | ||
Chapter 321, Tax Code, to a municipality or the governing body of a | ||
municipality is a reference to the district or the board, | ||
respectively. | ||
Sec. 3905.252. ELECTION; ADOPTION OF TAX. (a) The district | ||
may adopt a sales and use tax if authorized by a majority of the | ||
voters of the district voting at an election held for that purpose. | ||
(b) The board by order may call an election to authorize the | ||
adoption of the sales and use tax. The election may be held on any | ||
uniform election date and in conjunction with any other district | ||
election. | ||
(c) The district shall provide notice of the election and | ||
shall hold the election in the manner prescribed by Chapter 49, | ||
Water Code, for district elections. | ||
(d) The ballot shall be printed to provide for voting for or | ||
against the proposition: "Authorization of a sales and use tax in | ||
the Near Northside Management District at a rate not to exceed ____ | ||
percent" (insert rate of one or more increments of one-eighth of one | ||
percent). | ||
Sec. 3905.253. SALES AND USE TAX RATE. (a) After the date | ||
the results are declared of an election held under Section 3905.252 | ||
at which the voters authorized imposition of a tax, the board shall | ||
provide by resolution or order the initial rate of the tax, which | ||
must be in one or more increments of one-eighth of one percent and | ||
may not exceed the maximum rate authorized at the election. | ||
(b) After the authorization of a tax under Section 3905.252, | ||
the board may decrease the rate of the tax by one or more increments | ||
of one-eighth of one percent. | ||
(c) The board may not decrease the rate of the tax if the | ||
decrease would impair the repayment of any outstanding debt or | ||
obligation payable from the tax. | ||
(d) The board may by resolution or order increase the rate | ||
of the tax if the increase is approved at an election held in the | ||
manner prescribed by Section 3905.252. The board may increase the | ||
rate of the tax by one or more increments of one-eighth of one | ||
percent. | ||
Sec. 3905.254. ADDITIONAL RATE REQUIREMENTS. (a) Except | ||
as provided by Subsection (c), the rate of a sales and use tax | ||
imposed under this subchapter may not result in a combined rate of | ||
all sales and use taxes imposed by political subdivisions having | ||
territory in the district exceeding two percent at any location in | ||
the district. | ||
(b) In determining whether the combined sales and use tax | ||
rate would exceed two percent at any location in the district, the | ||
board shall include: | ||
(1) any sales and use tax imposed by a political | ||
subdivision whose territory overlaps all or part of the district; | ||
(2) any sales and use tax to be imposed by the city or | ||
the county as a result of an election held on the same date as the | ||
election held under Section 3905.252; and | ||
(3) any increase to an existing sales and use tax | ||
imposed by the city or the county as a result of an election held on | ||
the same date as the election held under Section 3905.252. | ||
(c) If the adoption or increase of a tax under this | ||
subchapter would result in a combined tax rate of more than two | ||
percent in any location in the district that is also in the | ||
territory of a metropolitan rapid transit authority that imposes a | ||
sales and use tax under Chapter 451, Transportation Code, the | ||
election to approve or increase the tax under this subchapter is to | ||
be treated for all purposes as an election to reduce the tax rate of | ||
the metropolitan rapid transit authority in the district to the | ||
highest rate that will not result in a combined tax rate of more | ||
than two percent in any location in the district. The ballot at an | ||
election to impose or increase the tax must clearly state that the | ||
adoption or increase of the tax will result in a reduction of the | ||
tax rate of the metropolitan rapid transit authority in the | ||
district. The district may not adopt a tax rate under this | ||
subchapter that results in the reduction of the tax rate of the | ||
metropolitan rapid transit authority to zero. | ||
(d) After an election described by Subsection (c) at which | ||
the tax rate of the metropolitan rapid transit authority is | ||
decreased, the metropolitan rapid transit authority may designate | ||
the territory of the authority in the district as a subregion in | ||
which the authority provides services according to the proportion | ||
of sales and use tax revenue collected by the authority in the | ||
subregion compared to revenue collected in the rest of the | ||
territory of the authority. | ||
(e) The rate of the sales and use tax imposed by the | ||
metropolitan rapid transit authority in the district is increased | ||
without further action of the board of the authority, the voters of | ||
the authority, or the district on the date on which the tax imposed | ||
by the district under this subchapter is decreased or expires, but | ||
only to the extent that: | ||
(1) any tax imposed by the authority was reduced under | ||
this section when the tax imposed by the district was adopted or | ||
increased; and | ||
(2) the increased rate complies with other law | ||
applicable to the authority's tax rate. | ||
Sec. 3905.255. NOTIFICATION OF RATE CHANGE. The board | ||
shall notify the comptroller of any changes made to the tax rate | ||
under this subchapter in the same manner the municipal secretary | ||
provides notice to the comptroller under Section 321.405(b), Tax | ||
Code. | ||
Sec. 3905.256. USE OF REVENUE. Revenue from the sales and | ||
use tax imposed under this subchapter is for the use and benefit of | ||
the district and may be used for any district purpose. The district | ||
may pledge all or part of the revenue to the payment of bonds, | ||
notes, or other obligations, and that pledge of revenue may be in | ||
combination with other revenue, including tax revenue, available to | ||
the district. | ||
Sec. 3905.257. ABOLITION OF TAX. (a) Except as provided by | ||
Subsection (b), the board may abolish the tax imposed under this | ||
subchapter without an election. | ||
(b) The board may not abolish the tax imposed under this | ||
subchapter if the district has any outstanding debt or obligation | ||
secured by the tax, and repayment of the debt or obligation would be | ||
impaired by the abolition of the tax. | ||
(c) If the board abolishes the tax, the board shall notify | ||
the comptroller of that action in the same manner the municipal | ||
secretary provides notice to the comptroller under Section | ||
321.405(b), Tax Code. | ||
(d) If the board abolishes the tax or decreases the tax rate | ||
to zero, a new election to authorize a sales and use tax must be held | ||
under Section 3905.252 before the district may subsequently impose | ||
the tax. | ||
SECTION 3. (a) The legal notice of the intention to | ||
introduce this Act, setting forth the general substance of this | ||
Act, has been published as provided by law, and the notice and a | ||
copy of this Act have been furnished to all persons, agencies, | ||
officials, or entities to which they are required to be furnished | ||
under Section 59, Article XVI, Texas Constitution, and Chapter 313, | ||
Government Code. | ||
(b) The governor, one of the required recipients, has | ||
submitted the notice and Act to the Texas Commission on | ||
Environmental Quality. | ||
(c) The Texas Commission on Environmental Quality has filed | ||
its recommendations relating to this Act with the governor, | ||
lieutenant governor, and speaker of the house of representatives | ||
within the required time. | ||
(d) All requirements of the constitution and laws of this | ||
state and the rules and procedures of the legislature with respect | ||
to the notice, introduction, and passage of this Act have been | ||
fulfilled and accomplished. | ||
SECTION 4. This Act takes effect immediately if it receives | ||
a vote of two-thirds of all the members elected to each house, as | ||
provided by Section 39, Article III, Texas Constitution. If this | ||
Act does not receive the vote necessary for immediate effect, this | ||
Act takes effect September 1, 2019. | ||
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