Texas 2019 - 86th Regular

Texas House Bill HB3160 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	86R26362 SMT-F
2		-	By: Raymond, Guillen H.B. No. 3160
3		-	Substitute the following for H.B. No. 3160:
4		-	By: Sanford C.S.H.B. No. 3160
	1	+	86R5299 SMT-F
	2	+	By: Raymond H.B. No. 3160
5	3
6	4
7	5		A BILL TO BE ENTITLED
8	6		AN ACT
9	7		relating to an election in certain municipalities to convert all or
10	8		a portion of a sales and use tax originally adopted for the purpose
11	9		of sports and community venues to a sales and use tax for economic
12	10		development purposes.
13	11		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	12		SECTION 1. Section 334.089(a), Local Government Code, is
15	13		amended to read as follows:
16	14		(a) Except as provided by Section 334.090, a [A] sales and
17	15		use tax imposed under this subchapter may not be collected after the
18	16		last day of the first calendar quarter occurring after notification
19	17		to the comptroller by the municipality or county that the
20	18		municipality or county has abolished the tax or that all bonds or
21	19		other obligations of the municipality or county that are payable in
22	20		whole or in part from money in the venue project fund, including any
23	21		refunding bonds or other obligations, have been paid in full or the
24	22		full amount of money, exclusive of guaranteed interest, necessary
25	23		to pay in full the bonds and other obligations has been set aside in
26	24		a trust account dedicated to the payment of the bonds and other
27	25		obligations.
28	26		SECTION 2. Subchapter D, Chapter 334, Local Government
29	27		Code, is amended by adding Section 334.090 to read as follows:
30	28		Sec. 334.090. CONVERSION OF TAX. (a) A sales and use tax
31	29		imposed under this subchapter is abolished or the rate of the tax is
32	30		reduced, as applicable, on the date a conversion of all or a portion
33	31		of the tax under Section 504.263 or 505.260 takes effect.
34	32		(b) A municipality shall notify the comptroller of a
35	33		conversion described by Subsection (a) not later than the 60th day
36	34		before the date the conversion takes effect.
37	35		SECTION 3. Subchapter F, Chapter 504, Local Government
38	36		Code, is amended by adding Section 504.263 to read as follows:
39	37		Sec. 504.263. ELECTION TO CONVERT CERTAIN SALES AND USE TAX
40	38		AUTHORITY. (a) This section applies only to a municipality with a
41	39		population of more than 200,000 that borders the United Mexican
42	40		States and that:
43	41		(1) has adopted a sales and use tax under Subchapter D,
44	42		Chapter 334; and
45	43		(2) on September 1, 2019, has or will have outstanding
46	44		bonded indebtedness for bonds issued under Section 334.043 that are
47	45		payable wholly or partly from the sales and use tax.
48	46		(b) A municipality may convert all or a portion of a sales
49		-	and use tax originally adopted under Subchapter D, Chapter 334, to a
	47	+	and use tax originally adopted under Subchapter D, Chapter 334, to
	48	+	pay for all or part of the bonds described by Subsection (a)(2) to a
50	49		sales and use tax under this subchapter if the conversion is
51	50		approved by a majority of the voters of the municipality voting at
52		-	an election held for that purpose.
	51	+	an election held for that purpose. The municipality may not convert
	52	+	any portion of the sales and use tax that, on the date the
	53	+	municipality orders the election under Subsection (c), is pledged
	54	+	or obligated for a purpose other than the payment of the bonds
	55	+	described by Subsection (a)(2).
53	56		(c) In an election to convert all or a portion of a sales and
54	57		use tax as provided by this section, the ballot shall be printed to
55	58		provide for voting for or against the proposition: "The conversion
56	59		of (insert "the" or "a portion of the," as applicable) sales and use
57	60		tax originally adopted for the purpose of financing a sports and
58	61		community venue project to a (insert the appropriate tax rate that
59	62		is an increment of one-eighth of one percent) sales and use tax for
60	63		the promotion and development of new and expanded business
61	64		enterprises.
62	65		(d) For purposes of Chapter 321, Tax Code, an election under
63	66		this section is an election to adopt a sales and use tax under this
64	67		subchapter and, as applicable, to abolish or reduce the rate of the
65	68		tax under Subchapter D, Chapter 334.
66	69		(e) Notwithstanding Section 321.102, Tax Code, a conversion
67	70		under this section takes effect on the first day after the date all
68		-	bonds described by Subsection (a)(2), including any refunding
69		-	bonds, have been paid in full or the full amount of money, exclusive
70		-	of guaranteed interest, necessary to pay the bonds in full has been
71		-	set aside in a trust account dedicated to the payment of the bonds.
	71	+	bonds described by Subsection (a)(2), including any refunding bonds
	72	+	or other obligations, have been paid in full or the full amount of
	73	+	money, exclusive of guaranteed interest, necessary to pay in full
	74	+	the bonds or other obligations has been set aside in a trust account
	75	+	dedicated to the payment of the bonds or other obligations.
72	76		(f) Notwithstanding Section 321.405(a), Tax Code, a
73	77		municipality that converts all or a portion of a tax under this
74	78		section shall comply with Section 321.405, Tax Code, not later than
75	79		the 60th day before the date the conversion takes effect.
76	80		(g) The conversion of all or a portion of a sales and use tax
77	81		under this section:
78	82		(1) abolishes or reduces the rate of a tax adopted
79		-	under ~~Subchapter D,~~ Chapter 334, as applicable;
	83	+	under Chapter 334, as applicable;
80	84		(2) imposes a sales and use tax under this subchapter:
81		-	(A) at the same rate as the tax under ~~Subchapter~~
82		-	~~D, Chapter 334,~~ was imposed, if that tax is abolished; or
	85	+	(A) at the same rate as the tax under Chapter 334
	86	+	was imposed, if that tax is abolished; or
83	87		(B) at a rate equal to the reduction in the rate
84		-	of the tax under Subchapter D, Chapter 334, if that rate is reduced;
85		-	and
	88	+	of the tax under Chapter 334, if that rate is reduced; and
86	89		(3) may not affect the combined rate of all sales and
87	90		use taxes imposed by political subdivisions of this state in any
88	91		territory in which the tax is imposed.
89	92		(h) If a sales and use tax conversion under this section is
90	93		not approved, the election does not affect the municipality's
91	94		authority to impose the sales and use tax adopted under Chapter 334,
92	95		or the rate of that tax, as provided by that chapter.
93	96		(i) If conversion of a portion of a sales and use tax is
94	97		approved under this section, the municipality may continue to
95	98		impose the portion of the tax under Subchapter D, Chapter 334, that
96	99		was not converted as provided by that chapter.
97	100		(j) For a tax converted under this subchapter, the election
98	101		requirement under Subsection (b) is satisfied and another election
99	102		is not required if the voters of the authorizing municipality
100		-	approved the conversion at an election ~~called or~~ held before the
101		-	~~effective~~ date of the Act enacting this section under an ordinance
102		-	~~calling the~~ election that:
	103	+	approved the conversion at an election held before the effective
	104	+	date of the Act enacting this section under an ordinance calling the
	105	+	election that:
103	106		(1) was published in a newspaper of general
104	107		circulation in the municipality at least 14 days before the date of
105	108		the election; and
106		-	(2) expressly stated that the election was being
107		-	~~called or held~~ in anticipation of the enactment of enabling and
108		-	~~implementing~~ legislation without further elections.
	109	+	(2) expressly stated that the election was being held
	110	+	in anticipation of the enactment of enabling and implementing
	111	+	legislation without further elections.
109	112		SECTION 4. Subchapter F, Chapter 505, Local Government
110	113		Code, is amended by adding Section 505.260 to read as follows:
111	114		Sec. 505.260. ELECTION TO CONVERT CERTAIN SALES AND USE TAX
112	115		AUTHORITY. (a) This section applies only to a municipality with a
113	116		population of more than 200,000 that borders the United Mexican
114	117		States and that:
115	118		(1) has adopted a sales and use tax under Subchapter D,
116	119		Chapter 334; and
117	120		(2) on September 1, 2019, has or will have outstanding
118	121		bonded indebtedness for bonds issued under Section 334.043 that are
119	122		payable wholly or partly from the sales and use tax.
120	123		(b) A municipality may convert all or a portion of a sales
121		-	and use tax originally adopted under Subchapter D, Chapter 334, to a
	124	+	and use tax originally adopted under Subchapter D, Chapter 334, to
	125	+	pay for all or part of the bonds described by Subsection (a)(2) to a
122	126		sales and use tax under this subchapter if the conversion is
123	127		approved by a majority of the voters of the municipality voting at
124		-	an election held for that purpose.
	128	+	an election held for that purpose. The municipality may not convert
	129	+	any portion of the sales and use tax that, on the date the
	130	+	municipality orders the election under Subsection (c), is pledged
	131	+	or obligated for a purpose other than the payment of the bonds
	132	+	described by Subsection (a)(2).
125	133		(c) In an election to convert all or a portion of a sales and
126	134		use tax as provided by this section, the ballot shall be printed to
127	135		provide for voting for or against the proposition: "The conversion
128	136		of (insert "the" or "a portion of the," as applicable) sales and use
129	137		tax originally adopted for the purpose of financing a sports and
130	138		community venue project to a (insert the appropriate tax rate that
131	139		is an increment of one-eighth of one percent) sales and use tax for
132	140		economic development projects described by Chapter 505.
133	141		(d) For purposes of Chapter 321, Tax Code, an election under
134	142		this section is an election to adopt a sales and use tax under this
135	143		subchapter and, as applicable, to abolish or reduce the rate of the
136	144		tax under Subchapter D, Chapter 334.
137	145		(e) Notwithstanding Section 321.102, Tax Code, a conversion
138	146		under this section takes effect on the first day after the date all
139		-	bonds described by Subsection (a)(2), including any refunding
140		-	bonds, have been paid in full or the full amount of money, exclusive
141		-	of guaranteed interest, necessary to pay the bonds in full has been
142		-	set aside in a trust account dedicated to the payment of the bonds.
	147	+	bonds described by Subsection (a)(2), including any refunding bonds
	148	+	or other obligations, have been paid in full or the full amount of
	149	+	money, exclusive of guaranteed interest, necessary to pay in full
	150	+	the bonds or other obligations has been set aside in a trust account
	151	+	dedicated to the payment of the bonds or other obligations.
143	152		(f) Notwithstanding Section 321.405(a), Tax Code, a
144	153		municipality that converts all or a portion of a tax under this
145	154		section shall comply with Section 321.405, Tax Code, not later than
146	155		the 60th day before the date the conversion takes effect.
147	156		(g) The conversion of all or a portion of a sales and use tax
148	157		under this section:
149	158		(1) abolishes or reduces the rate of a tax adopted
150		-	under ~~Subchapter D,~~ Chapter 334, as applicable;
	159	+	under Chapter 334, as applicable;
151	160		(2) imposes a sales and use tax under this subchapter:
152		-	(A) at the same rate as the tax under ~~Subchapter~~
153		-	~~D, Chapter 334,~~ was imposed, if that tax is abolished; or
	161	+	(A) at the same rate as the tax under Chapter 334
	162	+	was imposed, if that tax is abolished; or
154	163		(B) at a rate equal to the reduction in the rate
155		-	of the tax under Subchapter D, Chapter 334, if that rate is reduced;
156		-	and
	164	+	of the tax under Chapter 334, if that rate is reduced; and
157	165		(3) may not affect the combined rate of all sales and
158	166		use taxes imposed by political subdivisions of this state in any
159	167		territory in which the tax is imposed.
160	168		(h) If a sales and use tax conversion under this section is
161	169		not approved, the election does not affect the municipality's
162	170		authority to impose the sales and use tax adopted under Chapter 334,
163	171		or the rate of that tax, as provided by that chapter.
164	172		(i) If conversion of a portion of a sales and use tax is
165	173		approved under this section, the municipality may continue to
166	174		impose the portion of the tax under Subchapter D, Chapter 334, that
167	175		was not converted as provided by that chapter.
168	176		(j) For a tax converted under this subchapter, the election
169	177		requirement under Subsection (b) is satisfied and another election
170	178		is not required if the voters of the authorizing municipality
171		-	approved the conversion at an election ~~called or~~ held before the
172		-	~~effective~~ date of the Act enacting this section under an ordinance
173		-	~~calling the~~ election that:
	179	+	approved the conversion at an election held before the effective
	180	+	date of the Act enacting this section under an ordinance calling the
	181	+	election that:
174	182		(1) was published in a newspaper of general
175	183		circulation in the municipality at least 14 days before the date of
176	184		the election; and
177		-	(2) expressly stated that the election was being
178		-	~~called or held~~ in anticipation of the enactment of enabling and
179		-	~~implementing~~ legislation without further elections.
	185	+	(2) expressly stated that the election was being held
	186	+	in anticipation of the enactment of enabling and implementing
	187	+	legislation without further elections.
180	188		SECTION 5. This Act takes effect immediately if it receives
181	189		a vote of two-thirds of all the members elected to each house, as
182	190		provided by Section 39, Article III, Texas Constitution. If this
183	191		Act does not receive the vote necessary for immediate effect, this
184	192		Act takes effect September 1, 2019.