86R9841 JXC-D
By: Dutton H.B. No. 4748
A BILL TO BE ENTITLED
AN ACT
relating to the authority of the Near Northside Management District
to impose a sales and use tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 3905, Special District Local Laws Code,
is amended by adding Subchapter F to read as follows:
SUBCHAPTER F. SALES AND USE TAX
Sec. 3905.251. APPLICABILITY OF CERTAIN TAX CODE
PROVISIONS. (a) Chapter 321, Tax Code, governs the imposition,
computation, administration, enforcement, and collection of the
sales and use tax authorized by this subchapter except to the extent
Chapter 321, Tax Code, is inconsistent with this chapter.
(b) For the purposes of this subchapter, a reference in
Chapter 321, Tax Code, to a municipality or the governing body of a
municipality is a reference to the district or the board,
respectively.
Sec. 3905.252. ELECTION; ADOPTION OF TAX. (a) The district
may adopt a sales and use tax if authorized by a majority of the
voters of the district voting at an election held for that purpose.
(b) The board by order may call an election to authorize the
adoption of the sales and use tax. The election may be held on any
uniform election date and in conjunction with any other district
election.
(c) The district shall provide notice of the election and
shall hold the election in the manner prescribed by Section
3905.201.
(d) The ballot shall be printed to provide for voting for or
against the proposition: "Authorization of a sales and use tax in
the Near Northside Management District at a rate not to exceed ____
percent" (insert rate of one or more increments of one-eighth of one
percent).
Sec. 3905.253. SALES AND USE TAX RATE. (a) After the date
the results are declared of an election held under Section 3905.252
at which the voters authorized imposition of a tax, the board shall
provide by resolution or order the initial rate of the tax, which
must be in one or more increments of one-eighth of one percent.
(b) After the authorization of a tax under Section 3905.252,
the board may increase or decrease the rate of the tax by one or more
increments of one-eighth of one percent.
(c) The board may not decrease the rate of the tax if the
decrease would impair the repayment of any outstanding debt or
obligation payable from the tax.
(d) The initial rate of the tax or any rate resulting from
subsequent increases or decreases may not exceed the lesser of:
(1) the maximum rate authorized at the election held
under Section 3905.252; or
(2) a rate that, when added to the rates of all sales
and use taxes imposed by other political subdivisions with
territory in the district, would result in the maximum combined
rate prescribed by Section 321.101(f), Tax Code, at any location in
the district.
(e) In determining whether the combined sales and use tax
rate under Subsection (d)(2) would exceed the maximum combined rate
prescribed by Section 321.101(f), Tax Code, at any location in the
district, the board shall include:
(1) any sales and use tax imposed by a political
subdivision whose territory overlaps all or part of the district;
(2) any sales and use tax to be imposed by the city or
the county as a result of an election held on the same date as the
election held under Section 3905.252; and
(3) any increase to an existing sales and use tax
imposed by the city or the county as a result of an election held on
the same date as the election held under Section 3905.252.
Sec. 3905.254. NOTIFICATION OF RATE CHANGE. The board
shall notify the comptroller of any changes made to the tax rate
under this subchapter in the same manner the municipal secretary
provides notice to the comptroller under Section 321.405(b), Tax
Code.
Sec. 3905.255. USE OF REVENUE. Revenue from the sales and
use tax imposed under this subchapter is for the use and benefit of
the district and may be used for any district purpose. The district
may pledge all or part of the revenue to the payment of bonds,
notes, or other obligations, and that pledge of revenue may be in
combination with other revenue, including tax revenue, available to
the district.
Sec. 3905.256. ABOLITION OF TAX. (a) Except as provided by
Subsection (b), the board may abolish the tax imposed under this
subchapter without an election.
(b) The board may not abolish the tax imposed under this
subchapter if the district has any outstanding debt or obligation
secured by the tax, and repayment of the debt or obligation would be
impaired by the abolition of the tax.
(c) If the board abolishes the tax, the board shall notify
the comptroller of that action in the same manner the municipal
secretary provides notice to the comptroller under Section
321.405(b), Tax Code.
(d) If the board abolishes the tax or decreases the tax rate
to zero, a new election to authorize a sales and use tax must be held
under Section 3905.252 before the district may subsequently impose
the tax.
SECTION 2. (a) The legal notice of the intention to
introduce this Act, setting forth the general substance of this
Act, has been published as provided by law, and the notice and a
copy of this Act have been furnished to all persons, agencies,
officials, or entities to which they are required to be furnished
under Section 59, Article XVI, Texas Constitution, and Chapter 313,
Government Code.
(b) The governor, one of the required recipients, has
submitted the notice and Act to the Texas Commission on
Environmental Quality.
(c) The Texas Commission on Environmental Quality has filed
its recommendations relating to this Act with the governor,
lieutenant governor, and speaker of the house of representatives
within the required time.
(d) All requirements of the constitution and laws of this
state and the rules and procedures of the legislature with respect
to the notice, introduction, and passage of this Act have been
fulfilled and accomplished.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2019.