Texas 2011 - 82nd Regular

Texas House Bill HB629 Compare Versions

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1	1	82R420 JTS-D
2	2	By: Pickett H.B. No. 629
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the use of municipal or county sales tax increment
8	8	financing for a transportation reinvestment zone.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 222.106(g), Transportation Code, is
11	11	amended to read as follows:
12	12	(g) The ordinance designating an area as a transportation
13	13	reinvestment zone must:
14	14	(1) describe the boundaries of the zone with
15	15	sufficient definiteness to identify with ordinary and reasonable
16	16	certainty the territory included in the zone;
17	17	(2) provide that the zone takes effect immediately on
18	18	passage of the ordinance;
19	19	(3) assign a name to the zone for identification, with
20	20	the first zone designated by a municipality designated as
21	21	"Transportation Reinvestment Zone Number One, (City or Town, as
22	22	applicable) of (name of municipality)," and subsequently
23	23	designated zones assigned names in the same form, numbered
24	24	consecutively in the order of their designation;
25	25	(4) establish a [an ad valorem] tax increment account
26	26	for the zone; and
27	27	(5) contain findings that promotion of the
28	28	transportation project will cultivate development or redevelopment
29	29	of the zone.
30	30	SECTION 2. Subchapter E, Chapter 222, Transportation Code,
31	31	is amended by adding Section 222.108 to read as follows:
32	32	Sec. 222.108. SALES TAX INCREMENT. (a) In this section,
33	33	"sales tax base" for a transportation reinvestment zone means the
34	34	amount of sales and use taxes imposed by a municipality under
35	35	Section 321.101(a), Tax Code, or by a county under Chapter 323, Tax
36	36	Code, as applicable, attributable to the zone for the year in which
37	37	the zone was designated under this chapter.
38	38	(b) The governing body of a municipality or county may
39	39	determine, in an ordinance or order designating an area as a
40	40	transportation reinvestment zone or in an ordinance or order
41	41	adopted subsequent to the designation of a zone, the portion or
42	42	amount of tax increment generated from the sales and use taxes
43	43	imposed by a municipality under Section 321.101(a), Tax Code, or by
44	44	a county under Chapter 323, Tax Code, attributable to the zone,
45	45	above the sales tax base, to be used as provided by Subsection (e).
46	46	Nothing in this section requires a municipality or county to
47	47	contribute sales tax increment under this subsection.
48	48	(c) A county that designates a portion or amount of sales
49	49	tax increment under Subsection (b) must establish a tax increment
50	50	account. A municipality or county shall deposit the designated
51	51	portion or amount of tax increment under Subsection (b) to their
52	52	respective tax increment account.
53	53	(d) Before pledging or otherwise committing money in the tax
54	54	increment account under Subsection (c), the governing body of a
55	55	municipality or county may enter into an agreement, under
56	56	Subchapter E, Chapter 271, Local Government Code, to authorize and
57	57	direct the comptroller to:
58	58	(1) withhold from any payment to which the
59	59	municipality or county may be entitled the amount of the payment
60	60	into the tax increment account under Subsection (b);
61	61	(2) deposit that amount into the tax increment
62	62	account; and
63	63	(3) continue withholding and making additional
64	64	payments into the tax increment account until an amount sufficient
65	65	to satisfy the amount due has been met.
66	66	(e) The sales and use taxes to be deposited into the tax
67	67	increment account under this section may be disbursed from the
68	68	account only to:
69	69	(1) pay for projects authorized under Section 222.104,
70	70	including the repayment of amounts owed under an agreement entered
71	71	into under that section; and
72	72	(2) notwithstanding Sections 321.506 and 323.505, Tax
73	73	Code, satisfy claims of holders of tax increment bonds, notes, or
74	74	other obligations issued or incurred for projects authorized under
75	75	Section 222.104.
76	76	(f) The amount deposited by a county to a tax increment
77	77	account under this section is not considered to be sales and use tax
78	78	revenue for the purpose of property tax reduction and computation
79	79	of the county tax rate under Section 26.041, Tax Code.
80	80	SECTION 3. This Act takes effect immediately if it receives
81	81	a vote of two-thirds of all the members elected to each house, as
82	82	provided by Section 39, Article III, Texas Constitution. If this
83	83	Act does not receive the vote necessary for immediate effect, this
84	84	Act takes effect September 1, 2011.