| |
| |
|
|
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. |