S.B. No. 1339




AN ACT
relating to the limitation on the sales and use tax rate of a political subdivision in an advanced transportation district. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 451.705, Transportation Code, is amended to read as follows: Sec. 451.705. SUBSEQUENT ELECTIONS. (a) If the initial election under Section 451.702 is held only in the principal municipality, or if the voters of another municipality or the unincorporated area of a county do not vote to join the district at the initial election under Section 451.702, the governing body of the other municipality or the commissioners court of the county may order an election in the municipality or the county at a later date on the question of joining the district, except that the election may not be held if the governing body of the district determines that the addition of the municipality or unincorporated area would create a financial hardship on the district because: (1) the territory to be added is not contiguous to the territory of the existing district; or (2) the addition of the territory would impair the imposition of the sales and use tax authorized by this subchapter [voters of a municipality do not vote to join the district at the initial election under Section 451.702, the governing body of the municipality may order an election in the municipality at a later date on the question of joining the district]. (b) [If the voters of the unincorporated area of a county do not vote to join the district at the initial election under Section 451.702, the commissioners court of the county may order an election in the county at a later date on the question of joining the district. [(c)] An election ordered under this section shall be held in the same manner as the initial election, except that the governmental entity ordering the election shall pay the costs of the election, and the governing body of that entity shall canvass the vote, declare the results, and notify the district of the results of the election. (c) If after an election held under this subchapter, the imposition of the district's tax would not exceed the limit imposed by Section 451.706(a), at the election the ballot shall be prepared to permit voting for or against substantially the following proposition: "Joining the Advanced Transportation District and authorizing a sales and use tax at the rate of ____ (rate imposed elsewhere in the district)." SECTION 2. Section 451.706, Transportation Code, is amended by amending Subsection (b) and adding Subsection (d) to read as follows: (b) If the approval of the district's tax at [after] an election held under Section 451.705 would cause [this subchapter] the [imposition of the district's] tax in a political subdivision to [participating unit would] exceed the limit imposed under Subsection (a), the governing body of the political subdivision holding an election under Section 451.705 shall prepare the ballot to allow the voters of the subdivision to determine which portion of other sales taxes of that subdivision will be repealed if the voters approve joining the district [the election of a participating unit to join the district repeals all other local sales and use taxes in that unit], except that the following may not be reduced [for]: (1) the sales and use tax of the authority; and (2) a sales and use tax of not more than one percent imposed by a municipality under Section 321.101(a) or 321.103(a), Tax Code. (d) At an election held under Subsection (b), the ballot shall be prepared to permit voting for or against substantially the following proposition: "Joining the Advanced Transportation District, authorizing a sales and use tax at the rate of ___ (rate imposed elsewhere in the district), and repealing ____ cents of the following sales and use taxes used for ___________________________." Not later than the 45th day before the election date, the governing body of the political subdivision shall submit the ballot language to the authority for approval. SECTION 3. 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, 2005.
______________________________ ______________________________ President of the Senate Speaker of the House
I hereby certify that S.B. No. 1339 passed the Senate on April 21, 2005, by the following vote: Yeas 31, Nays 0; and that the Senate concurred in House amendment on May 26, 2005, by the following vote: Yeas 31, Nays 0. ______________________________ Secretary of the Senate I hereby certify that S.B. No. 1339 passed the House, with amendment, on May 19, 2005, by the following vote: Yeas 136, Nays 0, four present not voting. ______________________________ Chief Clerk of the House Approved: ______________________________ Date ______________________________ Governor