Bill Text: TX HB1609 | 2013-2014 | 83rd Legislature | Introduced


Bill Title: Relating to the limit on the rate of growth in appropriations and to the authority of the comptroller to reduce the state sales tax rate for designated periods.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2013-03-04 - Referred to Appropriations [HB1609 Detail]

Download: Texas-2013-HB1609-Introduced.html
  83R8812 JJT-D
 
  By: Hughes H.B. No. 1609
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the limit on the rate of growth in appropriations and to
  the authority of the comptroller to reduce the state sales tax rate
  for designated periods.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 316.001, Government Code, is amended to
  read as follows:
         Sec. 316.001.  LIMIT. The rate of growth of appropriations
  in a biennium from all available sources of revenue except the
  federal government [state tax revenues not dedicated by the
  constitution] may not exceed the average biennial rate of growth of
  this state's population during the three previous state fiscal
  bienniums adjusted by the average biennial rate of monetary
  inflation over the same period, as determined under Section 316.002
  [estimated rate of growth of the state's economy].
         SECTION 2.  Sections 316.002(a), (b), (c), and (e),
  Government Code, are amended to read as follows:
         (a)  Before the Legislative Budget Board submits the budget
  as prescribed by Section 322.008(c), the board shall establish[:
               [(1)]  the limit on the rate of growth in
  appropriations for that state fiscal biennium, as compared to the
  previous state fiscal biennium, by subtracting one from the product
  of:
               (1)  the sum of one and the estimated average biennial
  rate of growth of this state's population during the three previous
  fiscal bienniums; and
               (2)  the sum of one and the estimated average biennial
  rate of monetary inflation during the three previous fiscal
  bienniums [the state's economy from the current biennium to the
  next biennium;
               [(2)     the level of appropriations for the current
  biennium from state tax revenues not dedicated by the constitution;
  and
               [(3)     the amount of state tax revenues not dedicated by
  the constitution that could be appropriated for the next biennium
  within the limit established by the estimated rate of growth of the
  state's economy].
         (b)  Except as provided by Subsection (c), the board shall
  determine for the next state fiscal biennium the maximum
  permissible amount of appropriations from all available sources of
  revenue except the federal government by multiplying the amount of
  appropriations from those sources of revenue for the then current
  biennium by the sum of one and the limit on the rate of growth of
  appropriations determined by the board under Subsection (a) [the
  estimated rate of growth of the state's economy by dividing the
  estimated Texas total personal income for the next biennium by the
  estimated Texas total personal income for the current biennium.  
  Using standard statistical methods, the board shall make the
  estimate by projecting through the biennium the estimated Texas
  total personal income reported by the United States Department of
  Commerce or its successor in function].
         (c)  If a more effective method of computing the average
  biennial [comprehensive definition of the] rate of growth of the
  state's population adjusted for monetary inflation [economy] is
  developed and is approved by the committee established by Section
  316.005, the board may use that alternative method in computing
  [definition in calculating] the limit on appropriations.
         (e)  In the absence of an action by the Legislative Budget
  Board to adopt a spending limit as provided in Subsections (a) and
  (b), the limit on the [estimated] rate of growth of appropriations
  for the [in the state's economy from the current biennium to the]
  next state fiscal biennium is [shall be treated as if it were] zero,
  and the amount of revenue from all available sources except the
  federal government appropriated for the next state fiscal biennium
  may not exceed [state tax revenues not dedicated by the
  constitution that could be appropriated within the limit
  established by the estimated rate of growth in the state's economy
  shall be the same as] the amount [level] of appropriations from
  those sources for the then current biennium.
         SECTION 3.  Section 151.051, Tax Code, is amended to read as
  follows:
         Sec. 151.051.  SALES TAX IMPOSED. (a)  A tax is imposed on
  each sale of a taxable item in this state at a rate determined by the
  comptroller as provided by this section.
         (b)  Except as provided by this section, the [The] sales tax
  rate is 6-1/4 percent of the sales price of the taxable item sold.
         (c)  Each odd-numbered year, the comptroller shall determine
  whether the amount of undedicated unencumbered anticipated revenue
  is sufficient to permit, without resulting in a shortfall of
  revenue, a reduction of the sales tax rate by at least one-tenth of
  one percent for a period of two calendar years.
         (d)  If the comptroller determines under Subsection (c) that
  the rate may be reduced, then not later than November 1 of that year
  the comptroller shall declare a reduced sales tax rate for the next
  two calendar years that is at least one-tenth of one percent lower
  than the rate otherwise provided by Subsection (b). The
  comptroller shall publish the declaration in the Texas Register,
  shall mail notice of the declaration to each permit holder, and may
  provide notice by other means the comptroller determines prudent.
  The reduced rate applies beginning January 1 of the following year
  through December 31 of the second following year, except as
  provided by Subsection (e).
         (e)  Not later than November 1 of the first year of the period
  in which the reduced sales tax rate applies, the comptroller shall
  determine from then current available information whether the
  amount of undedicated unencumbered anticipated revenue is
  sufficient to maintain the reduced sales tax rate for the second
  year of the period without resulting in a shortfall of revenue. If
  the comptroller determines that a revenue shortfall is likely to
  occur, the comptroller shall declare the reduced rate rescinded for
  the following year. The comptroller shall publish the declaration
  in the Texas Register, shall mail notice of the declaration to each
  permit holder, and may provide notice by other means the
  comptroller determines prudent. For the period from January 1 to
  December 31 of the year following a declaration under this
  subsection, the sales tax rate is the rate otherwise provided by
  Subsection (b).
         (f)  The comptroller shall adopt rules to implement this
  section.
         SECTION 4.  This Act takes effect on the date on which the
  constitutional amendment proposed by the 83rd Legislature, Regular
  Session, 2013, to limit the rate of growth of appropriations from
  all sources of revenue except the federal government and to
  authorize the legislature to appropriate money for tax rebates
  takes effect. If that amendment is not approved by the voters, this
  Act has no effect.
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