Texas § TN.222.110 - SALES TAX INCREMENT

§ TN.222.110. SALES TAX INCREMENT

SALES TAX INCREMENT. (a) In this section, "sales tax base" for a transportation reinvestment zone means the amount of sales and use taxes imposed by a municipality under Section 321.101 (a), Tax Code, or by a county under Chapter 323 , Tax Code, as applicable, attributable to the zone for the year in which the zone was designated under this chapter. (1) Expired. (2) Expired. (b) The governing body of a municipality or county may determine, in an ordinance or order designating an area as a transportation reinvestment zone or in an ordinance or order adopted subsequent to the designation of a zone, the portion or amount of tax increment generated from the sales and use taxes imposed by a municipality under Section 321.101 (a), Tax Code, or by a county under Chapter 323 , Tax Code, attributable to the zone, above the sales tax base, to be used as provided by Subsection (e). Nothing in this section requires a municipality or county to contribute sales tax increment under this subsection. (c) A county that designates a portion or amount of sales tax increment under Subsection (b) must establish a tax increment account. A municipality or county shall deposit the designated portion or amount of tax increment under Subsection (b) to the entity's respective tax increment account. (d) Before pledging or otherwise committing money in the tax increment account under Subsection (c), the governing body of a municipality or county may enter into an agreement, under Subchapter E , Chapter 271 , Local Government Code, to authorize and direct the comptroller to: (1) withhold from any payment to which the municipality or county may be entitled the amount of the payment into the tax increment account under Subsection (b); (2) deposit that amount into the tax increment account; and (3) continue withholding and making additional payments into the tax increment account until an amount sufficient to satisfy the amount due has been met. (e) The sales and use taxes to be deposited into the tax increment account under this section may be disbursed from the account only to: (1) pay for projects authorized under Section 222.104 or 222.108 ; and (2) notwithstanding Sections 321.506 and 323.505 , Tax Code, satisfy claims of holders of tax increment bonds, notes, or other obligations issued or incurred for projects authorized under Section 222.104 or 222.108 . (f) The amount deposited by a county to a tax increment account under this section is not considered to be sales and use tax revenue for the purpose of property tax reduction and computation of the county tax rate under Section 26.041 , Tax Code. (g) Not later than the 30th day before the date the governing body of a municipality or county proposes to designate a portion or amount of sales tax increment under Subsection (b), the governing body shall hold a public hearing on the designation of the sales tax increment. At the hearing an interested person may speak for or against the designation of the sales tax increment. Not later than the seventh day before the date of the hearing, notice of the hearing must be published in a newspaper having general circulation in the county or municipality, as appropriate. (h) The hearing required under Subsection (g) may be held in conjunction with a hearing held under Section 222.106 (e) or 222.107 (e) if the ordinance or order designating an area as a transportation reinvestment zone under Section 222.106 or 222.107 also designates a sales tax increment under Subsection (b). (i) Repealed by Acts 2017, 85th Leg., R.S., Ch. 214 (S.B. 1305 ), Sec. 5, eff. December 31, 2017. (1) Expired. (2) Expired. Added by Acts 2011, 82nd Leg., R.S., Ch. 475 (H.B. 563 ), Sec. 5, eff. September 1, 2011. Amended by: Acts 2013, 83rd Leg., R.S., Ch. 114 (S.B. 1110 ), Sec. 9, eff. September 1, 2013. Acts 2013, 83rd Leg., R.S., Ch. 1134 (H.B. 2300 ), Sec. 2, eff. September 1, 2013. Acts 2013, 83rd Leg., R.S., Ch. 1372 (S.B. 1747 ), Sec. 3, eff. September 1, 2013. Acts 2015, 84th Leg., R.S., Ch. 1236 (S.B. 1296 ), Sec. 17.002, eff. September 1, 2015. Acts 2017, 85th Leg., R.S., Ch. 214 (S.B. 1305 ), Sec. 1, eff. December 31, 2017. Acts 2017, 85th Leg., R.S., Ch. 214 (S.B. 1305 ), Sec. 5, eff. December 31, 2017.