Texas 2025 - 89th Regular

Texas Senate Bill SB2588 Compare Versions

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

Old	New	Differences
1	1	89R14373 JBD-D
2	2	By: Zaffirini S.B. No. 2588
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the conversion of all or a portion of a municipal sales
10	10	and use tax originally adopted for the purpose of sports and
11	11	community venues to a municipal sales and use tax for economic
12	12	development purposes.
13	13	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	14	SECTION 1. Section 334.089(a), Local Government Code, is
15	15	amended to read as follows:
16	16	(a) Except as provided by Section 334.090, a [A] sales and
17	17	use tax imposed under this subchapter may not be collected after the
18	18	last day of the first calendar quarter occurring after notification
19	19	to the comptroller by the municipality or county that the
20	20	municipality or county has abolished the tax or that all bonds or
21	21	other obligations of the municipality or county that are payable in
22	22	whole or in part from money in the venue project fund, including any
23	23	refunding bonds or other obligations, have been paid in full or the
24	24	full amount of money, exclusive of guaranteed interest, necessary
25	25	to pay in full the bonds and other obligations has been set aside in
26	26	a trust account dedicated to the payment of the bonds and other
27	27	obligations.
28	28	SECTION 2. Subchapter D, Chapter 334, Local Government
29	29	Code, is amended by adding Section 334.090 to read as follows:
30	30	Sec. 334.090. CONVERSION OF TAX. (a) A sales and use tax
31	31	imposed under this subchapter is abolished or the rate of the tax is
32	32	reduced, as applicable, on the date a conversion of all or a portion
33	33	of the tax under Section 504.263 or 505.260 takes effect.
34	34	(b) A municipality shall notify the comptroller of a
35	35	conversion described by Subsection (a) not later than the 60th day
36	36	before the date the conversion takes effect.
37	37	SECTION 3. Subchapter F, Chapter 504, Local Government
38	38	Code, is amended by adding Section 504.263 to read as follows:
39	39	Sec. 504.263. ELECTION TO CONVERT CERTAIN SALES AND USE TAX
40	40	AUTHORITY. (a) This section applies only to a municipality that:
41	41	(1) has adopted a sales and use tax under Subchapter D,
42	42	Chapter 334; and
43	43	(2) on September 1, 2025, has or will have outstanding
44	44	bonded indebtedness for bonds issued under Section 334.043 that are
45	45	payable wholly or partly from the sales and use tax.
46	46	(b) A municipality may convert all or a portion of a sales
47	47	and use tax originally adopted under Subchapter D, Chapter 334, to a
48	48	sales and use tax under this subchapter if the conversion is
49	49	approved by a majority of the voters of the municipality voting at
50	50	an election held for that purpose.
51	51	(c) In an election to convert all or a portion of a sales and
52	52	use tax as provided by this section, the ballot shall be printed to
53	53	provide for voting for or against the proposition: "The conversion
54	54	of (insert "the" or "a portion of the," as applicable) sales and use
55	55	tax originally adopted for the purpose of financing a sports and
56	56	community venue project to a (insert the appropriate tax rate that
57	57	is an increment of one-eighth of one percent) sales and use tax for
58	58	the promotion and development of new and expanded business
59	59	enterprises."
60	60	(d) For purposes of Chapter 321, Tax Code, an election under
61	61	this section is an election to adopt a sales and use tax under this
62	62	subchapter and, as applicable, to abolish or reduce the rate of the
63	63	tax under Subchapter D, Chapter 334.
64	64	(e) Notwithstanding Section 321.102, Tax Code, a conversion
65	65	under this section takes effect on the first day after the date all
66	66	bonds described by Subsection (a)(2), including any refunding
67	67	bonds, have been paid in full or the full amount of money, exclusive
68	68	of guaranteed interest, necessary to pay the bonds in full has been
69	69	set aside in a trust account dedicated to the payment of the bonds.
70	70	(f) Notwithstanding Section 321.405(a), Tax Code, a
71	71	municipality that converts all or a portion of a tax under this
72	72	section shall comply with Section 321.405, Tax Code, not later than
73	73	the 60th day before the date the conversion takes effect.
74	74	(g) The conversion of all or a portion of a sales and use tax
75	75	under this section:
76	76	(1) abolishes or reduces the rate of a tax adopted
77	77	under Subchapter D, Chapter 334, as applicable;
78	78	(2) imposes a sales and use tax under this subchapter:
79	79	(A) at the same rate as the tax under Subchapter
80	80	D, Chapter 334, was imposed, if that tax is abolished; or
81	81	(B) at a rate equal to the reduction in the rate
82	82	of the tax under Subchapter D, Chapter 334, if that rate is reduced;
83	83	and
84	84	(3) may not affect the combined rate of all sales and
85	85	use taxes imposed by political subdivisions of this state in any
86	86	territory in which the tax is imposed.
87	87	(h) If a sales and use tax conversion under this section is
88	88	not approved, the election does not affect the municipality's
89	89	authority to impose the sales and use tax adopted under Chapter 334,
90	90	or the rate of that tax, as provided by that chapter.
91	91	(i) If conversion of a portion of a sales and use tax is
92	92	approved under this section, the municipality may continue to
93	93	impose the portion of the tax under Subchapter D, Chapter 334, that
94	94	was not converted as provided by that chapter.
95	95	(j) For a tax converted under this subchapter, the election
96	96	requirement under Subsection (b) is satisfied and another election
97	97	is not required if the voters of the authorizing municipality
98	98	approved the conversion at an election called or held before the
99	99	effective date of the Act enacting this section under an ordinance
100	100	calling the election that:
101	101	(1) was published in a newspaper of general
102	102	circulation in the municipality at least 14 days before the date of
103	103	the election; and
104	104	(2) expressly stated that the election was being
105	105	called or held in anticipation of the enactment of enabling and
106	106	implementing legislation without further elections.
107	107	SECTION 4. Subchapter F, Chapter 505, Local Government
108	108	Code, is amended by adding Section 505.260 to read as follows:
109	109	Sec. 505.260. ELECTION TO CONVERT CERTAIN SALES AND USE TAX
110	110	AUTHORITY. (a) This section applies only to a municipality that:
111	111	(1) has adopted a sales and use tax under Subchapter D,
112	112	Chapter 334; and
113	113	(2) on September 1, 2025, has or will have outstanding
114	114	bonded indebtedness for bonds issued under Section 334.043 that are
115	115	payable wholly or partly from the sales and use tax.
116	116	(b) A municipality may convert all or a portion of a sales
117	117	and use tax originally adopted under Subchapter D, Chapter 334, to a
118	118	sales and use tax under this subchapter if the conversion is
119	119	approved by a majority of the voters of the municipality voting at
120	120	an election held for that purpose.
121	121	(c) In an election to convert all or a portion of a sales and
122	122	use tax as provided by this section, the ballot shall be printed to
123	123	provide for voting for or against the proposition: "The conversion
124	124	of (insert "the" or "a portion of the," as applicable) sales and use
125	125	tax originally adopted for the purpose of financing a sports and
126	126	community venue project to a (insert the appropriate tax rate that
127	127	is an increment of one-eighth of one percent) sales and use tax for
128	128	economic development projects described by Chapter 505, Local
129	129	Government Code."
130	130	(d) For purposes of Chapter 321, Tax Code, an election under
131	131	this section is an election to adopt a sales and use tax under this
132	132	subchapter and, as applicable, to abolish or reduce the rate of the
133	133	tax under Subchapter D, Chapter 334.
134	134	(e) Notwithstanding Section 321.102, Tax Code, a conversion
135	135	under this section takes effect on the first day after the date all
136	136	bonds described by Subsection (a)(2), including any refunding
137	137	bonds, have been paid in full or the full amount of money, exclusive
138	138	of guaranteed interest, necessary to pay the bonds in full has been
139	139	set aside in a trust account dedicated to the payment of the bonds.
140	140	(f) Notwithstanding Section 321.405(a), Tax Code, a
141	141	municipality that converts all or a portion of a tax under this
142	142	section shall comply with Section 321.405, Tax Code, not later than
143	143	the 60th day before the date the conversion takes effect.
144	144	(g) The conversion of all or a portion of a sales and use tax
145	145	under this section:
146	146	(1) abolishes or reduces the rate of a tax adopted
147	147	under Subchapter D, Chapter 334, as applicable;
148	148	(2) imposes a sales and use tax under this subchapter:
149	149	(A) at the same rate as the tax under Subchapter
150	150	D, Chapter 334, was imposed, if that tax is abolished; or
151	151	(B) at a rate equal to the reduction in the rate
152	152	of the tax under Subchapter D, Chapter 334, if that rate is reduced;
153	153	and
154	154	(3) may not affect the combined rate of all sales and
155	155	use taxes imposed by political subdivisions of this state in any
156	156	territory in which the tax is imposed.
157	157	(h) If a sales and use tax conversion under this section is
158	158	not approved, the election does not affect the municipality's
159	159	authority to impose the sales and use tax adopted under Chapter 334,
160	160	or the rate of that tax, as provided by that chapter.
161	161	(i) If conversion of a portion of a sales and use tax is
162	162	approved under this section, the municipality may continue to
163	163	impose the portion of the tax under Subchapter D, Chapter 334, that
164	164	was not converted as provided by that chapter.
165	165	(j) For a tax converted under this subchapter, the election
166	166	requirement under Subsection (b) is satisfied and another election
167	167	is not required if the voters of the authorizing municipality
168	168	approved the conversion at an election called or held before the
169	169	effective date of the Act enacting this section under an ordinance
170	170	calling the election that:
171	171	(1) was published in a newspaper of general
172	172	circulation in the municipality at least 14 days before the date of
173	173	the election; and
174	174	(2) expressly stated that the election was being
175	175	called or held in anticipation of the enactment of enabling and
176	176	implementing legislation without further elections.
177	177	SECTION 5. This Act takes effect immediately if it receives
178	178	a vote of two-thirds of all the members elected to each house, as
179	179	provided by Section 39, Article III, Texas Constitution. If this
180	180	Act does not receive the vote necessary for immediate effect, this
181	181	Act takes effect September 1, 2025.