Bill Text: TX HB3438 | 2011-2012 | 82nd Legislature | Introduced


Bill Title: Relating to an election to authorize a sales and use tax adopted by certain municipalities to finance sports and community venues to be used for economic development purposes.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2011-05-09 - Meeting cancelled [HB3438 Detail]

Download: Texas-2011-HB3438-Introduced.html
  82R10231 DAK-D
 
  By: Raymond H.B. No. 3438
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to an election to authorize a sales and use tax adopted by
  certain municipalities to finance sports and community venues to be
  used for economic development purposes.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter F, Chapter 505, Local Government
  Code, is amended by adding Section 505.260 to read as follows:
         Sec. 505.260.  ELECTION TO CONVERT SALES AND USE TAX ADOPTED
  UNDER CHAPTER 334. (a) This section applies only to a municipality
  with a population of more than 200,000 that borders the United
  Mexican States and that:
               (1)  adopts a sales and use tax to finance an approved
  venue project in the manner provided by Chapter 334;
               (2)  as of September 1, 2011, has outstanding bonds or
  other obligations of the municipality that are payable wholly or
  partly from money in the venue project fund derived from a sales and
  use tax, including any refunding bonds or other obligations; and
               (3)  has not begun construction of the venue and
  related infrastructure as of September 1, 2011.
         (b)  The governing body of an authorizing municipality to
  which this section applies by ordinance may convert the sales and
  use tax adopted under Chapter 334 to a sales and use tax under this
  chapter for the benefit of the Type B corporation if the conversion
  of the tax is approved by a majority of the voters of the
  municipality voting at an election held for that purpose in
  accordance with this section and Chapter 321, Tax Code.
         (c)  In an election to convert the tax, the ballot shall be
  printed to provide for voting for or against the proposition: "The
  conversion of the sales and use tax to finance a sports and
  community venue previously approved by the voters of this
  municipality to a sales and use tax to be used by the municipality's
  Type B corporation for ______________________________ (Insert
  specific purpose authorized by Chapter 505)."
         (d)  For purposes of Chapter 321, Tax Code, an election for
  the conversion of the sales and use tax is an election for the
  adoption of the sales and use tax.
         (e)  If a majority of the voters of the municipality voting
  at the election approve the conversion of the tax, the sales and use
  tax under Chapter 334 is converted to a sales and use tax under this
  chapter for the benefit of the Type B corporation and, subject to
  the required payment of the principal of and interest on the
  outstanding bonds or other obligations described by Subsection
  (a)(2) as the obligations become due, the corporation may use the
  proceeds of the tax, as provided by this chapter, on the effective
  date of the conversion.
         (f)  Not later than the 10th day after the date of the canvass
  of an election in which the voters approve the conversion of a sales
  and use tax imposed under Chapter 334 for use by the Type B
  corporation, the governing body of the authorizing municipality
  shall:
               (1)  notify the comptroller of the results of the
  election; and
               (2)  provide for the transfer of the money the
  municipality deposited in the venue project fund under Section
  334.042 that is derived from a sales and use tax for the use of the
  Type B corporation.
         (g)  Conversion of a sales and use tax as provided by this
  section:
               (1)  abolishes the tax for the purposes of Chapter 334;
               (2)  establishes the tax as a tax adopted and imposed
  under this chapter to be administered and collected as provided by
  Section 505.256; and
               (3)  does not affect the combined rate of all sales and
  use taxes imposed by the municipality, this state, and other
  political subdivisions of this state having territory in the
  municipality, and that rate is the same rate after conversion as it
  was before conversion.
         (h)  The effective date of a conversion under this section is
  the day after the date that the sales and use tax may not be
  collected as provided by Section 334.089.  The Type B corporation
  may not use the proceeds of the converted sales and use tax or
  transferred money from the venue project fund until the date the
  conversion takes effect.
         SECTION 2.  Section 334.089(a), Local Government Code, is
  amended to read as follows:
         (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:
               (1)  the municipality or county has abolished the tax;
               (2)  the voters of the municipality have approved the
  conversion of the tax at an election held for that purpose under
  Section 505.260;
               (3)  [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
               (4)  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 3.  This Act takes effect September 1, 2011.
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