Bill Text: TX SB1319 | 2019-2020 | 86th Legislature | Enrolled
Bill Title: Relating to certain taxes and to an annual report submitted to the comptroller concerning those taxes.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Vetoed) 2019-06-15 - Vetoed by the Governor [SB1319 Detail]
Download: Texas-2019-SB1319-Enrolled.html
S.B. No. 1319 |
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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 [ |
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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 |