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

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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

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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.