82R1554 SMH-D
By: Paxton H.B. No. 2958
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.