LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION April 19, 2013 TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB3159 by Isaac (Relating to the allocation of sales and use tax after a municipality annexes land in an emergency services district and to the provision of emergency services in that area.), As Introduced No fiscal implication to the State is anticipated. The bill would amend Chapter 775, Health and Safety Code, relating to emergency services districts. The bill would take effect September 1, 2013. Local Government Impact A new Section 775.0754 would be added to provide that when a municipality annexes for full purposes part of a district that imposes a sales and use tax and the annexed area is not removed from the district, the municipality and the district may agree on an allocation between them of revenue from the sales and use tax imposed in the annexed area, and a municipality that enters an agreement under this section is not required to provide emergency services in the annexed area. A new Section 775.0755 would be added to provide that when a municipality and a district do not enter a agreement with respect to allocation of tax revenue from an annexed area, the sales and use tax rate for the municipality and the sales and use tax rate for the district would both be reduced in an amount equal to one-half of the amount that the combined sales and use tax rate in the area from all sources exceeds two percent. The bill provides for the possibility of a different allocation between a municipality and an emergency services district of sales and use tax revenue from an annexed area in the district than that provided by Section 321.102(f), Tax Code, but does not affect the total tax that may be imposed in an annexed area. There would be no fiscal impact for the state, nor any aggregate fiscal impact for units of local government. Source Agencies:304 Comptroller of Public Accounts LBB Staff: UP, KK, SD
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION
April 19, 2013
TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB3159 by Isaac (Relating to the allocation of sales and use tax after a municipality annexes land in an emergency services district and to the provision of emergency services in that area.), As Introduced
TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB3159 by Isaac (Relating to the allocation of sales and use tax after a municipality annexes land in an emergency services district and to the provision of emergency services in that area.), As Introduced
Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means
Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
HB3159 by Isaac (Relating to the allocation of sales and use tax after a municipality annexes land in an emergency services district and to the provision of emergency services in that area.), As Introduced
HB3159 by Isaac (Relating to the allocation of sales and use tax after a municipality annexes land in an emergency services district and to the provision of emergency services in that area.), As Introduced
No fiscal implication to the State is anticipated.
No fiscal implication to the State is anticipated.
The bill would amend Chapter 775, Health and Safety Code, relating to emergency services districts. The bill would take effect September 1, 2013.
The bill would amend Chapter 775, Health and Safety Code, relating to emergency services districts.
The bill would take effect September 1, 2013.
Local Government Impact
A new Section 775.0754 would be added to provide that when a municipality annexes for full purposes part of a district that imposes a sales and use tax and the annexed area is not removed from the district, the municipality and the district may agree on an allocation between them of revenue from the sales and use tax imposed in the annexed area, and a municipality that enters an agreement under this section is not required to provide emergency services in the annexed area. A new Section 775.0755 would be added to provide that when a municipality and a district do not enter a agreement with respect to allocation of tax revenue from an annexed area, the sales and use tax rate for the municipality and the sales and use tax rate for the district would both be reduced in an amount equal to one-half of the amount that the combined sales and use tax rate in the area from all sources exceeds two percent. The bill provides for the possibility of a different allocation between a municipality and an emergency services district of sales and use tax revenue from an annexed area in the district than that provided by Section 321.102(f), Tax Code, but does not affect the total tax that may be imposed in an annexed area. There would be no fiscal impact for the state, nor any aggregate fiscal impact for units of local government.
A new Section 775.0754 would be added to provide that when a municipality annexes for full purposes part of a district that imposes a sales and use tax and the annexed area is not removed from the district, the municipality and the district may agree on an allocation between them of revenue from the sales and use tax imposed in the annexed area, and a municipality that enters an agreement under this section is not required to provide emergency services in the annexed area. A new Section 775.0755 would be added to provide that when a municipality and a district do not enter a agreement with respect to allocation of tax revenue from an annexed area, the sales and use tax rate for the municipality and the sales and use tax rate for the district would both be reduced in an amount equal to one-half of the amount that the combined sales and use tax rate in the area from all sources exceeds two percent.
The bill provides for the possibility of a different allocation between a municipality and an emergency services district of sales and use tax revenue from an annexed area in the district than that provided by Section 321.102(f), Tax Code, but does not affect the total tax that may be imposed in an annexed area. There would be no fiscal impact for the state, nor any aggregate fiscal impact for units of local government.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: UP, KK, SD
UP, KK, SD