Texas 2021 - 87th Regular

Texas House Bill HB950 Compare Versions

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

Old	New	Differences
1	1	87R2223 SMT-F
2	2	By: Raymond H.B. No. 950
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the conversion of all or a portion of a municipal sales
8	8	and use tax originally adopted for the purpose of sports and
9	9	community venues to a municipal sales and use tax for economic
10	10	development purposes.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 334.089(a), Local Government Code, is
13	13	amended to read as follows:
14	14	(a) Except as provided by Section 334.090, a [A] sales and
15	15	use tax imposed under this subchapter may not be collected after the
16	16	last day of the first calendar quarter occurring after notification
17	17	to the comptroller by the municipality or county that the
18	18	municipality or county has abolished the tax or that all bonds or
19	19	other obligations of the municipality or county that are payable in
20	20	whole or in part from money in the venue project fund, including any
21	21	refunding bonds or other obligations, have been paid in full or the
22	22	full amount of money, exclusive of guaranteed interest, necessary
23	23	to pay in full the bonds and other obligations has been set aside in
24	24	a trust account dedicated to the payment of the bonds and other
25	25	obligations.
26	26	SECTION 2. Subchapter D, Chapter 334, Local Government
27	27	Code, is amended by adding Section 334.090 to read as follows:
28	28	Sec. 334.090. CONVERSION OF TAX. (a) A sales and use tax
29	29	imposed under this subchapter is abolished or the rate of the tax is
30	30	reduced, as applicable, on the date a conversion of all or a portion
31	31	of the tax under Section 504.263 or 505.260 takes effect.
32	32	(b) A municipality shall notify the comptroller of a
33	33	conversion described by Subsection (a) not later than the 60th day
34	34	before the date the conversion takes effect.
35	35	SECTION 3. Subchapter F, Chapter 504, Local Government
36	36	Code, is amended by adding Section 504.263 to read as follows:
37	37	Sec. 504.263. ELECTION TO CONVERT CERTAIN SALES AND USE TAX
38	38	AUTHORITY. (a) This section applies only to a municipality that:
39	39	(1) has adopted a sales and use tax under Subchapter D,
40	40	Chapter 334; and
41	41	(2) on September 1, 2021, has or will have outstanding
42	42	bonded indebtedness for bonds issued under Section 334.043 that are
43	43	payable wholly or partly from the sales and use tax.
44	44	(b) A municipality may convert all or a portion of a sales
45	45	and use tax originally adopted under Subchapter D, Chapter 334, to a
46	46	sales and use tax under this subchapter if the conversion is
47	47	approved by a majority of the voters of the municipality voting at
48	48	an election held for that purpose.
49	49	(c) In an election to convert all or a portion of a sales and
50	50	use tax as provided by this section, the ballot shall be printed to
51	51	provide for voting for or against the proposition: "The conversion
52	52	of (insert "the" or "a portion of the," as applicable) sales and use
53	53	tax originally adopted for the purpose of financing a sports and
54	54	community venue project to a (insert the appropriate tax rate that
55	55	is an increment of one-eighth of one percent) sales and use tax for
56	56	the promotion and development of new and expanded business
57	57	enterprises."
58	58	(d) For purposes of Chapter 321, Tax Code, an election under
59	59	this section is an election to adopt a sales and use tax under this
60	60	subchapter and, as applicable, to abolish or reduce the rate of the
61	61	tax under Subchapter D, Chapter 334.
62	62	(e) Notwithstanding Section 321.102, Tax Code, a conversion
63	63	under this section takes effect on the first day after the date all
64	64	bonds described by Subsection (a)(2), including any refunding
65	65	bonds, have been paid in full or the full amount of money, exclusive
66	66	of guaranteed interest, necessary to pay the bonds in full has been
67	67	set aside in a trust account dedicated to the payment of the bonds.
68	68	(f) Notwithstanding Section 321.405(a), Tax Code, a
69	69	municipality that converts all or a portion of a tax under this
70	70	section shall comply with Section 321.405, Tax Code, not later than
71	71	the 60th day before the date the conversion takes effect.
72	72	(g) The conversion of all or a portion of a sales and use tax
73	73	under this section:
74	74	(1) abolishes or reduces the rate of a tax adopted
75	75	under Subchapter D, Chapter 334, as applicable;
76	76	(2) imposes a sales and use tax under this subchapter:
77	77	(A) at the same rate as the tax under Subchapter
78	78	D, Chapter 334, was imposed, if that tax is abolished; or
79	79	(B) at a rate equal to the reduction in the rate
80	80	of the tax under Subchapter D, Chapter 334, if that rate is reduced;
81	81	and
82	82	(3) may not affect the combined rate of all sales and
83	83	use taxes imposed by political subdivisions of this state in any
84	84	territory in which the tax is imposed.
85	85	(h) If a sales and use tax conversion under this section is
86	86	not approved, the election does not affect the municipality's
87	87	authority to impose the sales and use tax adopted under Chapter 334,
88	88	or the rate of that tax, as provided by that chapter.
89	89	(i) If conversion of a portion of a sales and use tax is
90	90	approved under this section, the municipality may continue to
91	91	impose the portion of the tax under Subchapter D, Chapter 334, that
92	92	was not converted as provided by that chapter.
93	93	(j) For a tax converted under this subchapter, the election
94	94	requirement under Subsection (b) is satisfied and another election
95	95	is not required if the voters of the authorizing municipality
96	96	approved the conversion at an election called or held before the
97	97	effective date of the Act enacting this section under an ordinance
98	98	calling the election that:
99	99	(1) was published in a newspaper of general
100	100	circulation in the municipality at least 14 days before the date of
101	101	the election; and
102	102	(2) expressly stated that the election was being
103	103	called or held in anticipation of the enactment of enabling and
104	104	implementing legislation without further elections.
105	105	SECTION 4. Subchapter F, Chapter 505, Local Government
106	106	Code, is amended by adding Section 505.260 to read as follows:
107	107	Sec. 505.260. ELECTION TO CONVERT CERTAIN SALES AND USE TAX
108	108	AUTHORITY. (a) This section applies only to a municipality that:
109	109	(1) has adopted a sales and use tax under Subchapter D,
110	110	Chapter 334; and
111	111	(2) on September 1, 2021, has or will have outstanding
112	112	bonded indebtedness for bonds issued under Section 334.043 that are
113	113	payable wholly or partly from the sales and use tax.
114	114	(b) A municipality may convert all or a portion of a sales
115	115	and use tax originally adopted under Subchapter D, Chapter 334, to a
116	116	sales and use tax under this subchapter if the conversion is
117	117	approved by a majority of the voters of the municipality voting at
118	118	an election held for that purpose.
119	119	(c) In an election to convert all or a portion of a sales and
120	120	use tax as provided by this section, the ballot shall be printed to
121	121	provide for voting for or against the proposition: "The conversion
122	122	of (insert "the" or "a portion of the," as applicable) sales and use
123	123	tax originally adopted for the purpose of financing a sports and
124	124	community venue project to a (insert the appropriate tax rate that
125	125	is an increment of one-eighth of one percent) sales and use tax for
126	126	economic development projects described by Chapter 505, Local
127	127	Government Code."
128	128	(d) For purposes of Chapter 321, Tax Code, an election under
129	129	this section is an election to adopt a sales and use tax under this
130	130	subchapter and, as applicable, to abolish or reduce the rate of the
131	131	tax under Subchapter D, Chapter 334.
132	132	(e) Notwithstanding Section 321.102, Tax Code, a conversion
133	133	under this section takes effect on the first day after the date all
134	134	bonds described by Subsection (a)(2), including any refunding
135	135	bonds, have been paid in full or the full amount of money, exclusive
136	136	of guaranteed interest, necessary to pay the bonds in full has been
137	137	set aside in a trust account dedicated to the payment of the bonds.
138	138	(f) Notwithstanding Section 321.405(a), Tax Code, a
139	139	municipality that converts all or a portion of a tax under this
140	140	section shall comply with Section 321.405, Tax Code, not later than
141	141	the 60th day before the date the conversion takes effect.
142	142	(g) The conversion of all or a portion of a sales and use tax
143	143	under this section:
144	144	(1) abolishes or reduces the rate of a tax adopted
145	145	under Subchapter D, Chapter 334, as applicable;
146	146	(2) imposes a sales and use tax under this subchapter:
147	147	(A) at the same rate as the tax under Subchapter
148	148	D, Chapter 334, was imposed, if that tax is abolished; or
149	149	(B) at a rate equal to the reduction in the rate
150	150	of the tax under Subchapter D, Chapter 334, if that rate is reduced;
151	151	and
152	152	(3) may not affect the combined rate of all sales and
153	153	use taxes imposed by political subdivisions of this state in any
154	154	territory in which the tax is imposed.
155	155	(h) If a sales and use tax conversion under this section is
156	156	not approved, the election does not affect the municipality's
157	157	authority to impose the sales and use tax adopted under Chapter 334,
158	158	or the rate of that tax, as provided by that chapter.
159	159	(i) If conversion of a portion of a sales and use tax is
160	160	approved under this section, the municipality may continue to
161	161	impose the portion of the tax under Subchapter D, Chapter 334, that
162	162	was not converted as provided by that chapter.
163	163	(j) For a tax converted under this subchapter, the election
164	164	requirement under Subsection (b) is satisfied and another election
165	165	is not required if the voters of the authorizing municipality
166	166	approved the conversion at an election called or held before the
167	167	effective date of the Act enacting this section under an ordinance
168	168	calling the election that:
169	169	(1) was published in a newspaper of general
170	170	circulation in the municipality at least 14 days before the date of
171	171	the election; and
172	172	(2) expressly stated that the election was being
173	173	called or held in anticipation of the enactment of enabling and
174	174	implementing legislation without further elections.
175	175	SECTION 5. This Act takes effect immediately if it receives
176	176	a vote of two-thirds of all the members elected to each house, as
177	177	provided by Section 39, Article III, Texas Constitution. If this
178	178	Act does not receive the vote necessary for immediate effect, this
179	179	Act takes effect September 1, 2021.