| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the effect of a change in the state sales and use tax |
|
|
base on certain ad valorem tax rates of certain taxing units and the |
|
|
dedication of revenue attributable to the expansion of the state |
|
|
sales and use tax base to ad valorem tax relief. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Chapter 26, Tax Code, is amended by adding |
|
|
Section 26.042 to read as follows: |
|
|
Sec. 26.042. EFFECT OF CHANGE IN STATE SALES AND USE TAX |
|
|
BASE ON TAX RATE OF CERTAIN TAXING UNITS IMPOSING SALES AND USE TAX. |
|
|
(a) This section applies to the calculation of the effective tax |
|
|
rate and rollback tax rate of a taxing unit only in the first tax |
|
|
year following any one-year period in which one or more amendments |
|
|
to Chapter 151 take effect that change the items taxable under that |
|
|
chapter and cumulatively will result in an average increase or |
|
|
decrease in the amount of sales and use tax revenue received by each |
|
|
taxing unit that imposes a sales and use tax of at least two percent |
|
|
as estimated by the comptroller. |
|
|
(b) If the changes in the items taxable under Chapter 151 |
|
|
cumulatively will result in an average increase in the amount of |
|
|
sales and use tax revenue received, the effective tax rate and |
|
|
rollback tax rate of a taxing unit that imposes an additional sales |
|
|
and use tax or of a municipality that imposes a sales and use tax |
|
|
under Section 321.101(a) are reduced by the rate that, if applied to |
|
|
the current total value, would impose an amount of taxes equal to |
|
|
the amount of revenue gained because of the changes. |
|
|
(c) If the changes in the items taxable under Chapter 151 |
|
|
cumulatively will result in an average decrease in the amount of |
|
|
sales and use tax revenue received, the effective tax rate and |
|
|
rollback tax rate of a taxing unit that imposes an additional sales |
|
|
and use tax or of a municipality that imposes a sales and use tax |
|
|
under Section 321.101(a) are increased by the rate that, if applied |
|
|
to the current total value, would impose an amount of taxes equal to |
|
|
the amount of revenue lost because of the changes. |
|
|
(d) The comptroller shall provide to the designated officer |
|
|
or employee of each taxing unit that imposes an additional sales and |
|
|
use tax or municipality that imposes a sales and use tax under |
|
|
Section 321.101(a): |
|
|
(1) a projection of the revenue that will be generated |
|
|
by the additional sales and use tax imposed by the taxing unit or |
|
|
the sales and use tax imposed by the municipality under Section |
|
|
321.101(a) in the following year that takes into account the |
|
|
changes in the items taxable under Chapter 151; and |
|
|
(2) a projection of the revenue that will be generated |
|
|
by the additional sales and use tax imposed by the taxing unit or |
|
|
the sales and use tax imposed by the municipality under Section |
|
|
321.101(a) in the following year that does not take into account the |
|
|
changes in the items taxable under Chapter 151. |
|
|
(e) In making the projections under Subsection (d), the |
|
|
comptroller shall take into account the estimated amount of taxable |
|
|
sales and uses in the taxing unit or municipality for the preceding |
|
|
four quarters as compiled by the comptroller. |
|
|
(f) In order to determine the amount of revenue gained |
|
|
because of changes in the items taxable under Chapter 151, the |
|
|
designated officer or employee shall subtract the amount of the |
|
|
result of the projection provided to the designated officer or |
|
|
employee under Subsection (d)(2) from the amount of the result of |
|
|
the projection provided to the designated officer or employee under |
|
|
Subsection (d)(1). |
|
|
(g) In order to determine the amount of revenue lost because |
|
|
of changes in the items taxable under Chapter 151, the designated |
|
|
officer or employee shall subtract the amount of the result of the |
|
|
projection provided to the designated officer or employee under |
|
|
Subsection (d)(1) from the amount of the result of the projection |
|
|
provided to the designated officer or employee under Subsection |
|
|
(d)(2). |
|
|
SECTION 2. Section 151.801(a), Tax Code, is amended to read |
|
|
as follows: |
|
|
(a) Except for the amounts allocated under Subsections (b) |
|
|
and (c) and Section 151.802, all proceeds from the collection of the |
|
|
taxes imposed by this chapter shall be deposited to the credit of |
|
|
the general revenue fund. |
|
|
SECTION 3. Subchapter M, Chapter 151, Tax Code, is amended |
|
|
by adding Section 151.802 to read as follows: |
|
|
Sec. 151.802. ALLOCATION OF CERTAIN REVENUE TO PROPERTY TAX |
|
|
RELIEF FUND. All proceeds, other than the amount of the proceeds |
|
|
allocated under Sections 151.801(b) and (c), from the collection of |
|
|
taxes imposed by this chapter attributable to changes in the items |
|
|
taxable under this chapter because of amendments to this chapter |
|
|
that take effect in any one-year period beginning on or after |
|
|
September 1, 2011, and that cumulatively result in an increase in |
|
|
state revenue shall be deposited to the credit of the property tax |
|
|
relief fund under Section 403.109, Government Code. |
|
|
SECTION 4. Section 26.041(f), Tax Code, is repealed. |
|
|
SECTION 5. The changes in law made by this Act relating to |
|
|
the effective tax rate or rollback tax rate of a taxing unit or |
|
|
municipality apply only to the tax rate for a tax year beginning on |
|
|
or after the effective date of this Act. |
|
|
SECTION 6. (a) Except as provided by Subsection (b) of this |
|
|
section, this Act takes effect January 1, 2012. |
|
|
(b) Section 151.801(a), Tax Code, as amended by this Act, |
|
|
and Section 151.802, Tax Code, as added by this Act, take effect |
|
|
September 1, 2011. |