Texas 2015 - 84th Regular

Texas House Bill HB3639 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	84R6245 MK-D
2	2	By: Hughes H.B. No. 3639
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the limit on the rate of growth in appropriations and to
8	8	the authority of the comptroller to reduce the state sales and use
9	9	tax rates for designated periods.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 316.001, Government Code, is amended to
12	12	read as follows:
13	13	Sec. 316.001. LIMIT. The rate of growth of appropriations
14	14	in a biennium from all available sources of revenue except the
15	15	federal government [state tax revenues not dedicated by the
16	16	constitution] may not exceed the average biennial rate of growth of
17	17	this state's population during the three previous state fiscal
18	18	bienniums adjusted by the average biennial rate of monetary
19	19	inflation over the same period, as determined under Section 316.002
20	20	[estimated rate of growth of the state's economy].
21	21	SECTION 2. Sections 316.002(a), (b), (c), and (e),
22	22	Government Code, are amended to read as follows:
23	23	(a) Before the Legislative Budget Board submits the budget
24	24	as prescribed by Section 322.008(c), the board shall establish[:
25	25	[(1)] the limit on the rate of growth in
26	26	appropriations for that state fiscal biennium, as compared to the
27	27	previous state fiscal biennium, by subtracting one from the product
28	28	of:
29	29	(1) the sum of one and the estimated average biennial
30	30	rate of growth of this state's population during the three previous
31	31	fiscal bienniums; and
32	32	(2) the sum of one and the estimated average biennial
33	33	rate of monetary inflation during the three previous fiscal
34	34	bienniums [the state's economy from the current biennium to the
35	35	next biennium;
36	36	[(2) the level of appropriations for the current
37	37	biennium from state tax revenues not dedicated by the constitution;
38	38	and
39	39	[(3) the amount of state tax revenues not dedicated by
40	40	the constitution that could be appropriated for the next biennium
41	41	within the limit established by the estimated rate of growth of the
42	42	state's economy].
43	43	(b) Except as provided by Subsection (c), the board shall
44	44	determine for the next state fiscal biennium the maximum
45	45	permissible amount of appropriations from all available sources of
46	46	revenue except the federal government by multiplying the amount of
47	47	appropriations from those sources of revenue for the then current
48	48	biennium by the sum of one and the limit on the rate of growth of
49	49	appropriations determined by the board under Subsection (a) [the
50	50	estimated rate of growth of the state's economy by dividing the
51	51	estimated Texas total personal income for the next biennium by the
52	52	estimated Texas total personal income for the current biennium.
53	53	Using standard statistical methods, the board shall make the
54	54	estimate by projecting through the biennium the estimated Texas
55	55	total personal income reported by the United States Department of
56	56	Commerce or its successor in function].
57	57	(c) If a more effective method of computing the average
58	58	biennial [comprehensive definition of the] rate of growth of the
59	59	state's population adjusted for monetary inflation [economy] is
60	60	developed and is approved by the committee established by Section
61	61	316.005, the board may use that alternative method in computing
62	62	[definition in calculating] the limit on appropriations.
63	63	(e) In the absence of an action by the Legislative Budget
64	64	Board to adopt a spending limit as provided in Subsections (a) and
65	65	(b), the limit on the [estimated] rate of growth of appropriations
66	66	for the [in the state's economy from the current biennium to the]
67	67	next state fiscal biennium is [shall be treated as if it were] zero,
68	68	and the amount of revenue from all available sources except the
69	69	federal government appropriated for the next state fiscal biennium
70	70	may not exceed [state tax revenues not dedicated by the
71	71	constitution that could be appropriated within the limit
72	72	established by the estimated rate of growth in the state's economy
73	73	shall be the same as] the amount [level] of appropriations from
74	74	those sources for the then current biennium.
75	75	SECTION 3. Section 151.051, Tax Code, is amended to read as
76	76	follows:
77	77	Sec. 151.051. SALES TAX IMPOSED. (a) A tax is imposed on
78	78	each sale of a taxable item in this state at a rate determined by the
79	79	comptroller as provided by this section.
80	80	(b) Except as provided by this section, the [The] sales tax
81	81	rate is 6-1/4 percent of the sales price of the taxable item sold.
82	82	(c) Each odd-numbered year, the comptroller shall determine
83	83	whether the amount of undedicated unencumbered anticipated revenue
84	84	is sufficient to permit, without resulting in a shortfall of
85	85	revenue, a reduction of the sales tax rate by at least one-tenth of
86	86	one percent for a period of two calendar years.
87	87	(d) If the comptroller determines under Subsection (c) that
88	88	the rate may be reduced, then not later than November 1 of that year
89	89	the comptroller shall declare a reduced sales tax rate that is one
90	90	or more increments of one-tenth of one percent lower than the rate
91	91	otherwise provided by Subsection (b). The comptroller shall
92	92	publish the declaration in the Texas Register, shall mail notice of
93	93	the declaration to each permit holder, and may provide notice by
94	94	other means the comptroller determines prudent. The reduced rate
95	95	applies beginning January 1 of the following year through December
96	96	31 of the second following year, except as provided by Subsection
97	97	(e).
98	98	(e) Not later than November 1 of the first year of the period
99	99	in which the reduced sales tax rate applies, the comptroller shall
100	100	determine from then current available information whether the
101	101	amount of undedicated unencumbered anticipated revenue is
102	102	sufficient to maintain the reduced sales tax rate for the second
103	103	year of the period without resulting in a shortfall of revenue. If
104	104	the comptroller determines that a revenue shortfall is likely to
105	105	occur, the comptroller shall declare the reduced rate rescinded for
106	106	the following year. The comptroller shall publish the declaration
107	107	in the Texas Register, shall mail notice of the declaration to each
108	108	permit holder, and may provide notice by other means the
109	109	comptroller determines prudent. For the period from January 1 to
110	110	December 31 of the year following a declaration under this
111	111	subsection, the sales tax rate is the rate otherwise provided by
112	112	Subsection (b).
113	113	(f) The comptroller shall adopt rules to implement this
114	114	section.
115	115	SECTION 4. Section 151.101(b), Tax Code, is amended to read
116	116	as follows:
117	117	(b) The tax is at the same percentage rate as is imposed
118	118	under [provided by] Section 151.051 [of this code] on the sales
119	119	price of the taxable item.
120	120	SECTION 5. This Act takes effect on the date on which the
121	121	constitutional amendment proposed by the 84th Legislature, Regular
122	122	Session, 2015, to limit the rate of growth of appropriations from
123	123	all sources of revenue except the federal government and to
124	124	authorize the legislature to appropriate money for tax rebates
125	125	takes effect. If that amendment is not approved by the voters, this
126	126	Act has no effect.