Bill Text: TX HB950 | 2021-2022 | 87th Legislature | Introduced


Bill Title: Relating to the conversion of all or a portion of a municipal sales and use tax originally adopted for the purpose of sports and community venues to a municipal sales and use tax for economic development purposes.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2021-03-01 - Referred to Ways & Means [HB950 Detail]

Download: Texas-2021-HB950-Introduced.html
  87R2223 SMT-F
 
  By: Raymond H.B. No. 950
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the conversion of all or a portion of a municipal sales
  and use tax originally adopted for the purpose of sports and
  community venues to a municipal sales and use tax for economic
  development purposes.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 334.089(a), Local Government Code, is
  amended to read as follows:
         (a)  Except as provided by Section 334.090, a [A] sales and
  use tax imposed under this subchapter may not be collected after the
  last day of the first calendar quarter occurring after notification
  to the comptroller by the municipality or county that the
  municipality or county has abolished the tax or that all bonds or
  other obligations of the municipality or county that are payable in
  whole or in part from money in the venue project fund, including any
  refunding bonds or other obligations, have been paid in full or the
  full amount of money, exclusive of guaranteed interest, necessary
  to pay in full the bonds and other obligations has been set aside in
  a trust account dedicated to the payment of the bonds and other
  obligations.
         SECTION 2.  Subchapter D, Chapter 334, Local Government
  Code, is amended by adding Section 334.090 to read as follows:
         Sec. 334.090.  CONVERSION OF TAX. (a) A sales and use tax
  imposed under this subchapter is abolished or the rate of the tax is
  reduced, as applicable, on the date a conversion of all or a portion
  of the tax under Section 504.263 or 505.260 takes effect.
         (b)  A municipality shall notify the comptroller of a
  conversion described by Subsection (a) not later than the 60th day
  before the date the conversion takes effect.
         SECTION 3.  Subchapter F, Chapter 504, Local Government
  Code, is amended by adding Section 504.263 to read as follows:
         Sec. 504.263.  ELECTION TO CONVERT CERTAIN SALES AND USE TAX
  AUTHORITY. (a)  This section applies only to a municipality that:
               (1)  has adopted a sales and use tax under Subchapter D,
  Chapter 334; and
               (2)  on September 1, 2021, has or will have outstanding
  bonded indebtedness for bonds issued under Section 334.043 that are
  payable wholly or partly from the sales and use tax.
         (b)  A municipality may convert all or a portion of a sales
  and use tax originally adopted under Subchapter D, Chapter 334, to a
  sales and use tax under this subchapter if the conversion is
  approved by a majority of the voters of the municipality voting at
  an election held for that purpose.
         (c)  In an election to convert all or a portion of a sales and
  use tax as provided by this section, the ballot shall be printed to
  provide for voting for or against the proposition: "The conversion
  of (insert "the" or "a portion of the," as applicable) sales and use
  tax originally adopted for the purpose of financing a sports and
  community venue project to a (insert the appropriate tax rate that
  is an increment of one-eighth of one percent) sales and use tax for
  the promotion and development of new and expanded business
  enterprises."
         (d)  For purposes of Chapter 321, Tax Code, an election under
  this section is an election to adopt a sales and use tax under this
  subchapter and, as applicable, to abolish or reduce the rate of the
  tax under Subchapter D, Chapter 334.
         (e)  Notwithstanding Section 321.102, Tax Code, a conversion
  under this section takes effect on the first day after the date all
  bonds described by Subsection (a)(2), including any refunding
  bonds, have been paid in full or the full amount of money, exclusive
  of guaranteed interest, necessary to pay the bonds in full has been
  set aside in a trust account dedicated to the payment of the bonds.
         (f)  Notwithstanding Section 321.405(a), Tax Code, a
  municipality that converts all or a portion of a tax under this
  section shall comply with Section 321.405, Tax Code, not later than
  the 60th day before the date the conversion takes effect.
         (g)  The conversion of all or a portion of a sales and use tax
  under this section:
               (1)  abolishes or reduces the rate of a tax adopted
  under Subchapter D, Chapter 334, as applicable;
               (2)  imposes a sales and use tax under this subchapter:
                     (A)  at the same rate as the tax under Subchapter
  D, Chapter 334, was imposed, if that tax is abolished; or
                     (B)  at a rate equal to the reduction in the rate
  of the tax under Subchapter D, Chapter 334, if that rate is reduced;
  and
               (3)  may not affect the combined rate of all sales and
  use taxes imposed by political subdivisions of this state in any
  territory in which the tax is imposed.
         (h)  If a sales and use tax conversion under this section is
  not approved, the election does not affect the municipality's
  authority to impose the sales and use tax adopted under Chapter 334,
  or the rate of that tax, as provided by that chapter.
         (i)  If conversion of a portion of a sales and use tax is
  approved under this section, the municipality may continue to
  impose the portion of the tax under Subchapter D, Chapter 334, that
  was not converted as provided by that chapter.
         (j)  For a tax converted under this subchapter, the election
  requirement under Subsection (b) is satisfied and another election
  is not required if the voters of the authorizing municipality
  approved the conversion at an election called or held before the
  effective date of the Act enacting this section under an ordinance
  calling the election that:
               (1)  was published in a newspaper of general
  circulation in the municipality at least 14 days before the date of
  the election; and
               (2)  expressly stated that the election was being
  called or held in anticipation of the enactment of enabling and
  implementing legislation without further elections.
         SECTION 4.  Subchapter F, Chapter 505, Local Government
  Code, is amended by adding Section 505.260 to read as follows:
         Sec. 505.260.  ELECTION TO CONVERT CERTAIN SALES AND USE TAX
  AUTHORITY. (a) This section applies only to a municipality that:
               (1)  has adopted a sales and use tax under Subchapter D,
  Chapter 334; and
               (2)  on September 1, 2021, has or will have outstanding
  bonded indebtedness for bonds issued under Section 334.043 that are
  payable wholly or partly from the sales and use tax.
         (b)  A municipality may convert all or a portion of a sales
  and use tax originally adopted under Subchapter D, Chapter 334, to a
  sales and use tax under this subchapter if the conversion is
  approved by a majority of the voters of the municipality voting at
  an election held for that purpose.
         (c)  In an election to convert all or a portion of a sales and
  use tax as provided by this section, the ballot shall be printed to
  provide for voting for or against the proposition: "The conversion
  of (insert "the" or "a portion of the," as applicable) sales and use
  tax originally adopted for the purpose of financing a sports and
  community venue project to a (insert the appropriate tax rate that
  is an increment of one-eighth of one percent) sales and use tax for
  economic development projects described by Chapter 505, Local
  Government Code."
         (d)  For purposes of Chapter 321, Tax Code, an election under
  this section is an election to adopt a sales and use tax under this
  subchapter and, as applicable, to abolish or reduce the rate of the
  tax under Subchapter D, Chapter 334.
         (e)  Notwithstanding Section 321.102, Tax Code, a conversion
  under this section takes effect on the first day after the date all
  bonds described by Subsection (a)(2), including any refunding
  bonds, have been paid in full or the full amount of money, exclusive
  of guaranteed interest, necessary to pay the bonds in full has been
  set aside in a trust account dedicated to the payment of the bonds.
         (f)  Notwithstanding Section 321.405(a), Tax Code, a
  municipality that converts all or a portion of a tax under this
  section shall comply with Section 321.405, Tax Code, not later than
  the 60th day before the date the conversion takes effect.
         (g)  The conversion of all or a portion of a sales and use tax
  under this section:
               (1)  abolishes or reduces the rate of a tax adopted
  under Subchapter D, Chapter 334, as applicable;
               (2)  imposes a sales and use tax under this subchapter:
                     (A)  at the same rate as the tax under Subchapter
  D, Chapter 334, was imposed, if that tax is abolished; or
                     (B)  at a rate equal to the reduction in the rate
  of the tax under Subchapter D, Chapter 334, if that rate is reduced;
  and
               (3)  may not affect the combined rate of all sales and
  use taxes imposed by political subdivisions of this state in any
  territory in which the tax is imposed.
         (h)  If a sales and use tax conversion under this section is
  not approved, the election does not affect the municipality's
  authority to impose the sales and use tax adopted under Chapter 334,
  or the rate of that tax, as provided by that chapter.
         (i)  If conversion of a portion of a sales and use tax is
  approved under this section, the municipality may continue to
  impose the portion of the tax under Subchapter D, Chapter 334, that
  was not converted as provided by that chapter.
         (j)  For a tax converted under this subchapter, the election
  requirement under Subsection (b) is satisfied and another election
  is not required if the voters of the authorizing municipality
  approved the conversion at an election called or held before the
  effective date of the Act enacting this section under an ordinance
  calling the election that:
               (1)  was published in a newspaper of general
  circulation in the municipality at least 14 days before the date of
  the election; and
               (2)  expressly stated that the election was being
  called or held in anticipation of the enactment of enabling and
  implementing legislation without further elections.
         SECTION 5.  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, 2021.
feedback