S.B. No. 1319
AN ACT
relating to certain taxes and to an annual report submitted to the
comptroller concerning those taxes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 334.089(a), Local Government Code, is
amended to read as follows:
(a) Except as provided by Section 334.090, a [A] sales and
use tax imposed under this subchapter may not be collected after the
last day of the first calendar quarter occurring after notification
to the comptroller by the municipality or county that the
municipality or county has abolished the tax or that all bonds or
other obligations of the municipality or county that are payable in
whole or in part from money in the venue project fund, including any
refunding bonds or other obligations, have been paid in full or the
full amount of money, exclusive of guaranteed interest, necessary
to pay in full the bonds and other obligations has been set aside in
a trust account dedicated to the payment of the bonds and other
obligations.
SECTION 2. Subchapter D, Chapter 334, Local Government
Code, is amended by adding Section 334.090 to read as follows:
Sec. 334.090. CONVERSION OF TAX. (a) A sales and use tax
imposed under this subchapter is abolished or the rate of the tax is
reduced, as applicable, on the date a conversion of all or a portion
of the tax under Section 504.263 or 505.260 takes effect.
(b) A municipality or county shall notify the comptroller of
a conversion described by Subsection (a) not later than the 60th day
before the date the conversion takes effect.
(c) The abolition or reduction by a county of the rate of a
sales and use tax imposed under this section shall be included in
the report submitted to the comptroller by the county under Section
352.009.
SECTION 3. Subchapter F, Chapter 504, Local Government
Code, is amended by adding Section 504.263 to read as follows:
Sec. 504.263. ELECTION TO CONVERT CERTAIN SALES AND USE TAX
AUTHORITY. (a) This section applies only to:
(1) a municipality with a population of more than
200,000 that borders the United Mexican States and that:
(A) has adopted a sales and use tax under
Subchapter D, Chapter 334; and
(B) on September 1, 2019, has or will have
outstanding bonded indebtedness for bonds issued under Section
334.043 that are payable wholly or partly from the sales and use
tax; or
(2) a county that borders the United Mexican States
that:
(A) has a population of less than 300,000; and
(B) contains one or more municipalities with a
population of 200,000 or more that hold an annual jalapeño
festival.
(b) A municipality or county may convert all or a portion of
a sales and use tax originally adopted under Subchapter D, Chapter
334, to a sales and use tax under this subchapter if the conversion
is approved by a majority of the voters of the municipality or
county voting at an election held for that purpose.
(c) In an election to convert all or a portion of a municipal
sales and use tax as provided by this section, the ballot shall be
printed to provide for voting for or against the proposition: "The
conversion of (insert "the" or "a portion of the," as applicable)
sales and use tax originally adopted for the purpose of financing a
sports and community venue project to a (insert the appropriate tax
rate that is an increment of one-eighth of one percent) sales and
use tax for the promotion and development of new and expanded
business enterprises."
(d) For purposes of Chapter 321, Tax Code, an election under
this section is an election to adopt a sales and use tax under this
subchapter and, as applicable, to abolish or reduce the rate of the
tax under Subchapter D, Chapter 334.
(e) Notwithstanding Section 321.102, Tax Code, a conversion
by a municipality under this section takes effect on the first day
after the date all bonds described by Subsection (a)(1)(B),
including any refunding bonds, have been paid in full or the full
amount of money, exclusive of guaranteed interest, necessary to pay
the bonds in full has been set aside in a trust account dedicated to
the payment of the bonds.
(f) Notwithstanding Section 321.405(a), Tax Code, a
municipality that converts all or a portion of a tax under this
section shall comply with Section 321.405, Tax Code, not later than
the 60th day before the date the conversion takes effect.
(g) The conversion of all or a portion of a sales and use tax
under this section:
(1) abolishes or reduces the rate of a tax adopted
under Subchapter D, Chapter 334, as applicable; and
(2) imposes a sales and use tax under this subchapter:
(A) at the same rate as the tax under Subchapter
D, Chapter 334, was imposed, if that tax is abolished; or
(B) at a rate equal to the reduction in the rate
of the tax under Subchapter D, Chapter 334, if that rate is reduced.
(h) If a sales and use tax conversion under this section is
not approved, the election does not affect the county's or
municipality's authority to impose the sales and use tax adopted
under Chapter 334, or the rate of that tax, as provided by that
chapter.
(i) If conversion of a portion of a sales and use tax is
approved under this section, the county or municipality may
continue to impose the portion of the tax under Subchapter D,
Chapter 334, that was not converted as provided by that chapter.
(j) For a municipal tax converted under this subchapter, the
election requirement under Subsection (b) is satisfied and another
election is not required if the voters of the authorizing
municipality approved the conversion at an election called or held
before the effective date of the Act enacting this section under an
ordinance calling the election that:
(1) was published in a newspaper of general
circulation in the municipality at least 14 days before the date of
the election; and
(2) expressly stated that the election was being
called or held in anticipation of the enactment of enabling and
implementing legislation without further elections.
SECTION 4. Subchapter F, Chapter 505, Local Government
Code, is amended by adding Section 505.260 to read as follows:
Sec. 505.260. ELECTION TO CONVERT CERTAIN SALES AND USE TAX
AUTHORITY. (a) This section applies only to:
(1) a municipality with a population of more than
200,000 that borders the United Mexican States and that:
(A) has adopted a sales and use tax under
Subchapter D, Chapter 334; and
(B) on September 1, 2019, has or will have
outstanding bonded indebtedness for bonds issued under Section
334.043 that are payable wholly or partly from the sales and use
tax; or
(2) a county that borders the United Mexican States
that:
(A) has a population of less than 300,000; and
(B) contains one or more municipalities with a
population of 200,000 or more that hold an annual jalapeño
festival.
(b) A municipality or county may convert all or a portion of
a sales and use tax originally adopted under Subchapter D, Chapter
334, to a sales and use tax under this subchapter if the conversion
is approved by a majority of the voters of the municipality or
county voting at an election held for that purpose.
(c) In an election to convert all or a portion of a municipal
sales and use tax as provided by this section, the ballot shall be
printed to provide for voting for or against the proposition: "The
conversion of (insert "the" or "a portion of the," as applicable)
sales and use tax originally adopted for the purpose of financing a
sports and community venue project to a (insert the appropriate tax
rate that is an increment of one-eighth of one percent) sales and
use tax for economic development projects described by Chapter
505."
(d) For purposes of Chapter 321, Tax Code, an election under
this section is an election to adopt a sales and use tax under this
subchapter and, as applicable, to abolish or reduce the rate of the
tax under Subchapter D, Chapter 334.
(e) Notwithstanding Section 321.102, Tax Code, a conversion
by a municipality under this section takes effect on the first day
after the date all bonds described by Subsection (a)(1)(B),
including any refunding bonds, have been paid in full or the full
amount of money, exclusive of guaranteed interest, necessary to pay
the bonds in full has been set aside in a trust account dedicated to
the payment of the bonds.
(f) Notwithstanding Section 321.405(a), Tax Code, a
municipality that converts all or a portion of a tax under this
section shall comply with Section 321.405, Tax Code, not later than
the 60th day before the date the conversion takes effect.
(g) The conversion of all or a portion of a sales and use tax
under this section:
(1) abolishes or reduces the rate of a tax adopted
under Subchapter D, Chapter 334, as applicable; and
(2) imposes a sales and use tax under this subchapter:
(A) at the same rate as the tax under Subchapter
D, Chapter 334, was imposed, if that tax is abolished; or
(B) at a rate equal to the reduction in the rate
of the tax under Subchapter D, Chapter 334, if that rate is reduced.
(h) If a sales and use tax conversion under this section is
not approved, the election does not affect the county's or
municipality's authority to impose the sales and use tax adopted
under Chapter 334, or the rate of that tax, as provided by that
chapter.
(i) If conversion of a portion of a sales and use tax is
approved under this section, the county or municipality may
continue to impose the portion of the tax under Subchapter D,
Chapter 334, that was not converted as provided by that chapter.
(j) For a municipal tax converted under this subchapter, the
election requirement under Subsection (b) is satisfied and another
election is not required if the voters of the authorizing
municipality approved the conversion at an election called or held
before the effective date of the Act enacting this section under an
ordinance calling the election that:
(1) was published in a newspaper of general
circulation in the municipality at least 14 days before the date of
the election; and
(2) expressly stated that the election was being
called or held in anticipation of the enactment of enabling and
implementing legislation without further elections.
SECTION 5. Subchapter A, Chapter 352, Tax Code, is amended
by adding Section 352.009 to read as follows:
Sec. 352.009. ANNUAL REPORT TO COMPTROLLER. (a) Not later
than February 20 of each year, a county that imposes the tax
authorized by this chapter shall report to the comptroller:
(1) the rate of:
(A) the tax imposed by the county under this
chapter; and
(B) if applicable, the tax imposed by the county
under Subchapter H, Chapter 334, Local Government Code; and
(2) the amount of revenue collected during the
county's preceding fiscal year from:
(A) the tax imposed by the county under this
chapter; and
(B) if applicable, the tax imposed by the county
under Subchapter H, Chapter 334, Local Government Code.
(b) The county must make the report required by this section
by:
(1) submitting the report to the comptroller on a form
prescribed by the comptroller; or
(2) providing the comptroller a direct link to, or a
clear statement describing the location of, the information
required to be reported that is posted on the Internet website of
the county.
(c) Subject to Subsection (b)(2), the comptroller shall
prescribe the form a county must use for the report required to be
submitted under this section.
(d) The comptroller may adopt rules necessary to administer
this section.
SECTION 6. As soon as practicable, but not later than
January 1, 2020, the comptroller of public accounts shall prescribe
the form required by Section 352.009(c), Tax Code, as added by this
Act.
SECTION 7. A county shall submit the initial report or
otherwise provide the initial information required by Section
352.009, Tax Code, as added by this Act, not later than February 20,
2020.
SECTION 8. 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.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1319 passed the Senate on
April 17, 2019, by the following vote: Yeas 31, Nays 0; and that
the Senate concurred in House amendment on May 23, 2019, by the
following vote: Yeas 30, Nays 1.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1319 passed the House, with
amendment, on May 21, 2019, by the following vote: Yeas 146,
Nays 0, one present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor