By: Dutton (Senate Sponsor - Miles) H.B. No. 4748
(In the Senate - Received from the House May 13, 2019;
May 14, 2019, read first time and referred to Committee on
Intergovernmental Relations; May 20, 2019, reported adversely,
with favorable Committee Substitute by the following vote: Yeas 7,
Nays 0; May 20, 2019, sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR H.B. No. 4748 By: Alvarado
A BILL TO BE ENTITLED
AN ACT
relating to the authority of the Near Northside Management District
to impose a sales and use tax and finance a project or service.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 3905.151, Special District Local Laws
Code, is amended to read as follows:
Sec. 3905.151. PETITION REQUIRED FOR FINANCING SERVICES AND
IMPROVEMENTS. (a) The board may not finance a service or an
improvement project under this chapter unless a written petition
requesting that service or improvement is filed with the board.
(b) The petition must be signed by[:
[(1)] the owners of at least 60 percent [a majority] of
the assessed value of real property in the district according to the
most recent certified tax appraisal roll for the county[; or
[(2) at least 25 owners of land in the district, if
more than 25 persons own property in the district according to the
most recent certified tax appraisal roll for the county].
SECTION 2. 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 Chapter 49,
Water Code, for district elections.
(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 and
may not exceed the maximum rate authorized at the election.
(b) After the authorization of a tax under Section 3905.252,
the board may 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 board may by resolution or order increase the rate
of the tax if the increase is approved at an election held in the
manner prescribed by Section 3905.252. The board may increase the
rate of the tax by one or more increments of one-eighth of one
percent.
Sec. 3905.254. ADDITIONAL RATE REQUIREMENTS. (a) Except
as provided by Subsection (c), the rate of a sales and use tax
imposed under this subchapter may not result in a combined rate of
all sales and use taxes imposed by political subdivisions having
territory in the district exceeding two percent at any location in
the district.
(b) In determining whether the combined sales and use tax
rate would exceed two percent 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.
(c) If the adoption or increase of a tax under this
subchapter would result in a combined tax rate of more than two
percent in any location in the district that is also in the
territory of a metropolitan rapid transit authority that imposes a
sales and use tax under Chapter 451, Transportation Code, the
election to approve or increase the tax under this subchapter is to
be treated for all purposes as an election to reduce the tax rate of
the metropolitan rapid transit authority in the district to the
highest rate that will not result in a combined tax rate of more
than two percent in any location in the district. The ballot at an
election to impose or increase the tax must clearly state that the
adoption or increase of the tax will result in a reduction of the
tax rate of the metropolitan rapid transit authority in the
district. The district may not adopt a tax rate under this
subchapter that results in the reduction of the tax rate of the
metropolitan rapid transit authority to zero.
(d) After an election described by Subsection (c) at which
the tax rate of the metropolitan rapid transit authority is
decreased, the metropolitan rapid transit authority may designate
the territory of the authority in the district as a subregion in
which the authority provides services according to the proportion
of sales and use tax revenue collected by the authority in the
subregion compared to revenue collected in the rest of the
territory of the authority.
(e) The rate of the sales and use tax imposed by the
metropolitan rapid transit authority in the district is increased
without further action of the board of the authority, the voters of
the authority, or the district on the date on which the tax imposed
by the district under this subchapter is decreased or expires, but
only to the extent that:
(1) any tax imposed by the authority was reduced under
this section when the tax imposed by the district was adopted or
increased; and
(2) the increased rate complies with other law
applicable to the authority's tax rate.
Sec. 3905.255. 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. 3905.256. 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. 3905.257. 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 3. (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 4. 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.
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