Texas § TN.22.0781 - REVENUE SHARING AGREEMENT WITH MUNICIPALITY

§ TN.22.0781. REVENUE SHARING AGREEMENT WITH MUNICIPALITY

REVENUE SHARING AGREEMENT WITH MUNICIPALITY. (a) A municipality, a joint board for which the constituent agencies are populous home-rule municipalities, and the constituent agencies may make an agreement under which a portion of the revenue derived from a tax or fee of the municipality imposed in the territory of the municipality for which the joint board has exclusive power under Section 22.074 (d) may be transferred to the constituent agencies if under the agreement the joint board agrees to encourage development opportunities in the territory of the municipality that are feasible and consistent with the development policies of the joint board. (b) A tax or fee that may be transferred under an agreement includes a sales and use tax, an ad valorem property tax, a mixed beverage tax, a fine, a franchise fee, a cost of court, and a hotel occupancy tax. (c) The agreement may provide for the inclusion of revenue from a tax imposed under Chapter 334 , Local Government Code, in the transfer only if the election approving that tax is held after the date the agreement is made under this section. If any revenue from a tax imposed under Chapter 334 , Local Government Code, is to be transferred, the municipality must provide general notice of that fact in the order calling the election and in the ballot proposition. The specifics of the transfer agreement are not required to be placed in the order or in the ballot proposition and only the municipality that will transfer its revenue is required to hold an election for the agreement to be effective. The ballot for an election held under this subsection shall be prepared to permit voting for or against the proposition: "Authorizing __________(insert name of municipality) to impose a __________(insert type of tax) tax at the rate of __________ (insert the maximum rate of the tax) with the revenue to be shared with __________ (insert name of each constituent agency covered by the agreement) under a revenue sharing agreement." (d) A constituent agency may use revenue received under an agreement under this section for one or more of the following: (1) the acquisition, construction, improvement, and renovation of any public work, including land, buildings, materials, supplies, equipment, furnishings, and machinery; (2) to secure and pledge in support of the payment of bonds or other obligations issued by or on behalf of the constituent agency after the effective date of the agreement for any purpose for which the constituent agency, or an entity created by the constituent agency to act on its behalf, may issue bonds or obligations; and (3) to pay the cost of a credit agreement, as defined by Section 1371.001 , Government Code. (e) Notwithstanding any other law, a municipality may use revenue retained under an agreement for any governmental purpose. (f) Notwithstanding any other provision of Chapter 334 , Local Government Code, a tax imposed under Chapter 334 that is subject to an agreement under this section continues in effect until the governing body of the municipality that imposed the tax acts at its discretion to repeal the tax. (g) To the extent of any conflict between this section and another provision of law, including a charter provision, this section controls. Added by Acts 1999, 76th Leg., ch. 160, Sec. 1, eff. May 21, 1999. Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.372, eff. Sept. 1, 2001.