81R8042 CBH-F
By: Thompson H.B. No. 1377
A BILL TO BE ENTITLED
AN ACT
relating to the reallocation of local sales and use taxes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter F, Chapter 321, Tax Code, is amended
by adding Section 321.5025 to read as follows:
Sec. 321.5025. REALLOCATION OF MUNICIPAL TAX REVENUE. (a)
If the comptroller determines that tax revenue collected by the
comptroller has been sent incorrectly to a municipality under
Section 321.502, the comptroller may reallocate the tax revenue to
the appropriate municipality only if:
(1) the reallocation is made in accordance with this
section; and
(2) the municipality that originally received the
revenue receives notification of the reallocation under Subsection
(b) not later than the first anniversary of the date the
municipality originally received the revenue.
(b) If the comptroller determines that tax revenue
collected by the comptroller has been sent incorrectly to a
municipality under Section 321.502, the comptroller shall send to
that municipality written notice that the comptroller intends to
reallocate the revenue to another municipality. A municipality
that receives a notice under this subsection may protest the
comptroller's determination by submitting to the comptroller a
written request for a hearing on the issue of whether the original
allocation of the revenue was incorrect. The municipality must
submit the request not later than the 30th day after the date the
municipality receives the notice under this subsection.
(c) Not later than the 15th day after the date the
comptroller receives a request for a hearing under Subsection (b),
the comptroller shall send to the requesting municipality a copy of
all records, documents, and other information on which the
comptroller relied in making its determination, regardless of
whether the information is confidential under state law, including
Sections 111.006 and 151.027. The provision of confidential
information to a municipality under this subsection does not affect
the confidential nature of the information. A municipality shall
use the information only in a manner that maintains the
confidential nature of the information and may not disclose or
release the information to the public.
(d) Not earlier than the 30th day or later than the 90th day
after the date the comptroller receives a request for a hearing
under Subsection (b), the comptroller shall hold a hearing on
whether the original allocation of the revenue was incorrect.
After the conclusion of the hearing, the comptroller shall issue to
the municipality a written final decision regarding the protest.
For purposes of Section 2001.171, Government Code, the
comptroller's decision is final and appealable on the date the
decision is issued under this subsection.
(e) If the municipality is not satisfied with the
comptroller's written final decision, the municipality may appeal
the decision by filing a petition in a Travis County district court
not later than the 30th day after the date the municipality receives
the decision. Judicial review of the decision is under the
substantial evidence rule. The court shall hear the appeal without
a jury.
SECTION 2. Section 322.108(a), Tax Code, is amended to read
as follows:
(a) Except as provided by Subsection (b), the following
apply to the taxes imposed by this chapter in the same manner as
applicable to a municipality under Chapter 321:
(1) Section 321.002(a)(3);
(2) Section 321.003;
(3) Section 321.203;
(4) Section 321.205(d);
(5) Section 321.208;
(6) Section 321.209;
(7) Section 321.303;
(8) Section 321.304; [and]
(9) Section 321.305; and
(10) Section 321.5025.
SECTION 3. Subchapter F, Chapter 323, Tax Code, is amended
by adding Section 323.5025 to read as follows:
Sec. 323.5025. REALLOCATION OF COUNTY TAX REVENUE. (a) If
the comptroller determines that tax revenue collected by the
comptroller has been sent incorrectly to a county under Section
323.502, the comptroller may reallocate the tax revenue to the
appropriate county only if:
(1) the reallocation is made in accordance with this
section; and
(2) the county that originally received the revenue
receives notification of the reallocation under Subsection (b) not
later than the first anniversary of the date the county originally
received the revenue.
(b) If the comptroller determines that tax revenue
collected by the comptroller has been sent incorrectly to a county
under Section 323.502, the comptroller shall send to that county
written notice that the comptroller intends to reallocate the
revenue to another county. A county that receives a notice under
this subsection may protest the comptroller's determination by
submitting to the comptroller a written request for a hearing on the
issue of whether the original allocation of the revenue was
incorrect. The county must submit the request not later than the
30th day after the date the county receives the notice under this
subsection.
(c) Not later than the 15th day after the date the
comptroller receives a request for a hearing under Subsection (b),
the comptroller shall send to the requesting county a copy of all
records, documents, and other information on which the comptroller
relied in making its determination, regardless of whether the
information is confidential under state law, including Sections
111.006 and 151.027. The provision of confidential information to
a county under this subsection does not affect the confidential
nature of the information. A county shall use the information only
in a manner that maintains the confidential nature of the
information and may not disclose or release the information to the
public.
(d) Not earlier than the 30th day or later than the 90th day
after the date the comptroller receives a request for a hearing
under Subsection (b), the comptroller shall hold a hearing on
whether the original allocation of the revenue was incorrect.
After the conclusion of the hearing, the comptroller shall issue to
the county a written final decision regarding the protest. For
purposes of Section 2001.171, Government Code, the comptroller's
decision is final and appealable on the date the decision is issued
under this subsection.
(e) If the county is not satisfied with the comptroller's
written final decision, the county may appeal the decision by
filing a petition in a Travis County district court not later than
the 30th day after the date the county receives the decision.
Judicial review of the decision is under the substantial evidence
rule. The court shall hear the appeal without a jury.
SECTION 4. Section 380.001, Local Government Code, is
amended by adding Subsection (b-1) to read as follows:
(b-1) Notwithstanding Section 380.002, a municipality may
not use sales and use tax revenue that was reallocated to the
municipality under Section 321.5025, Tax Code, to make loans or
grants for the administration of a program under this chapter.
SECTION 5. This Act takes effect July 1, 2009, if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for effect on that
date, this Act takes effect September 1, 2009.