CHAPTER 3863. TRAVIS COUNTY IMPROVEMENT DISTRICT NO. 1
SPECIAL DISTRICT LOCAL LAWS CODE
TITLE 4. DEVELOPMENT AND IMPROVEMENT
SUBTITLE C. DEVELOPMENT, IMPROVEMENT, AND MANAGEMENT
CHAPTER 3863. TRAVIS COUNTY IMPROVEMENT DISTRICT NO. 1
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 3863.001. DEFINITIONS. In this chapter:
(1) "Board" means the district's board of directors.
(2) "Director" means a board member.
(3) "District" means the Travis County Improvement District No.
1.
Added by Acts 2009, 81st Leg., R.S., Ch.
883, Sec. 1, eff. June 19, 2009.
Sec. 3863.002. NATURE OF DISTRICT. The Travis County
Improvement District No. 1 is a special district created under
Section 59, Article XVI, Texas Constitution.
Added by Acts 2009, 81st Leg., R.S., Ch.
883, Sec. 1, eff. June 19, 2009.
Sec. 3863.003. PURPOSE; DECLARATION OF INTENT. (a) The
creation of the district is essential to accomplish the purposes
of Sections 52 and 52-a, Article III, and Section 59, Article
XVI, Texas Constitution, and other public purposes stated in this
chapter. By creating the district and in authorizing Travis
County and other political subdivisions to contract with the
district, the legislature has established a program to accomplish
the public purposes set out in Section 52-a, Article III, Texas
Constitution.
(b) The creation of the district is necessary to promote,
develop, encourage, and maintain employment, commerce,
transportation, housing, tourism, recreation, the arts,
entertainment, economic development, safety, and the public
welfare in the district.
(c) This chapter and the creation of the district may not be
interpreted to relieve Travis County from providing the level of
services provided, as of the effective date of the Act enacting
this chapter, to the area in the district. The district is
created to supplement and not to supplant the county services
provided in the area in the district.
Added by Acts 2009, 81st Leg., R.S., Ch.
883, Sec. 1, eff. June 19, 2009.
Sec. 3863.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The
district is created to serve a public use and benefit.
(b) All land and other property included in the district will
benefit from the improvements and services to be provided by the
district under powers conferred by Sections 52 and 52-a, Article
III, and Section 59, Article XVI, Texas Constitution, and other
powers granted under this chapter.
(c) The creation of the district is in the public interest and
is essential to:
(1) further the public purposes of developing and diversifying
the economy of the state;
(2) eliminate unemployment and underemployment; and
(3) develop or expand transportation and commerce.
(d) The district will:
(1) promote the health, safety, and general welfare of
residents, employers, potential employees, employees, visitors,
and consumers in the district, and of the public;
(2) provide needed funding for the district to preserve,
maintain, and enhance the economic health and vitality of the
district territory as a community and business center;
(3) promote the health, safety, welfare, and enjoyment of the
public by providing pedestrian ways and by landscaping and
developing certain areas in the district, which are necessary for
the restoration, preservation, and enhancement of scenic beauty;
and
(4) provide for water, wastewater, drainage, road, and
recreational facilities for the district.
(e) Pedestrian ways along or across a street, whether at grade
or above or below the surface, and street lighting, street
landscaping, parking, and street art objects are parts of and
necessary components of a street and are considered to be a
street or road improvement.
(f) The district will not act as the agent or instrumentality of
any private interest even though the district will benefit many
private interests as well as the public.
Added by Acts 2009, 81st Leg., R.S., Ch.
883, Sec. 1, eff. June 19, 2009.
Sec. 3863.005. INITIAL DISTRICT TERRITORY. (a) The district is
initially composed of the territory described by Section 2 of the
Act enacting this chapter.
(b) The boundaries and field notes contained in Section 2 of the
Act enacting this chapter form a closure. A mistake in the field
notes or in copying the field notes in the legislative process
does not affect the district's:
(1) organization, existence, or validity;
(2) right to issue any type of bond for the purposes for which
the district is created or to pay the principal of and interest
on the bond;
(3) right to impose or collect an assessment or tax; or
(4) legality or operation.
Added by Acts 2009, 81st Leg., R.S., Ch.
883, Sec. 1, eff. June 19, 2009.
Sec. 3863.006. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES. All
or any part of the area of the district is eligible to be
included in:
(1) a tax increment reinvestment zone created under Chapter 311,
Tax Code;
(2) a tax abatement reinvestment zone created under Chapter 312,
Tax Code; or
(3) an enterprise zone created under Chapter 2303, Government
Code.
Added by Acts 2009, 81st Leg., R.S., Ch.
883, Sec. 1, eff. June 19, 2009.
Sec. 3863.007. APPLICABILITY OF MUNICIPAL MANAGEMENT DISTRICTS
LAW. Except as otherwise provided by this chapter, Chapter 375,
Local Government Code, applies to the district.
Added by Acts 2009, 81st Leg., R.S., Ch.
883, Sec. 1, eff. June 19, 2009.
Sec. 3863.008. LIBERAL CONSTRUCTION OF CHAPTER. This chapter
shall be liberally construed in conformity with the findings and
purposes stated in this chapter.
Added by Acts 2009, 81st Leg., R.S., Ch.
883, Sec. 1, eff. June 19, 2009.
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 3863.051. GOVERNING BODY; TERMS. The district is governed
by a board of five voting directors who serve staggered terms of
four years, with two or three directors' terms expiring June 1 of
each odd-numbered year.
Added by Acts 2009, 81st Leg., R.S., Ch.
883, Sec. 1, eff. June 19, 2009.
Sec. 3863.052. APPOINTMENT OF DIRECTORS. The Texas Commission
on Environmental Quality shall appoint voting directors from
persons recommended by the board.
Added by Acts 2009, 81st Leg., R.S., Ch.
883, Sec. 1, eff. June 19, 2009.
For expiration of this section, see Subsection (d).
Sec. 3863.053. INITIAL VOTING DIRECTORS. (a) On or after the
effective date of the Act creating this chapter, the owner or
owners of a majority of the assessed value of the real property
in the district may submit a petition to the Texas Commission on
Environmental Quality requesting that the commission appoint as
initial voting directors the five persons named in the petition.
The commission shall appoint the five persons named in the
petition as initial voting directors by position.
(b) Of the initial voting directors, the terms of directors
appointed for positions 1 through 3 expire June 1, 2011, and the
terms of directors appointed for positions 4 and 5 expire June 1,
2013.
(c) Section 3863.052 does not apply to the appointment of
directors under this section.
(d) This section expires September 1, 2014.
Added by Acts 2009, 81st Leg., R.S., Ch.
883, Sec. 1, eff. June 19, 2009.
Sec. 3863.054. NONVOTING DIRECTORS. The board may appoint
nonvoting directors to serve at the pleasure of the voting
directors.
Added by Acts 2009, 81st Leg., R.S., Ch.
883, Sec. 1, eff. June 19, 2009.
Sec. 3863.055. QUORUM. For purposes of determining the
requirements for a quorum of the board, the following are not
counted:
(1) a board position vacant for any reason, including death,
resignation, or disqualification;
(2) a director who is abstaining from participation in a vote
because of a conflict of interest; or
(3) a nonvoting director.
Added by Acts 2009, 81st Leg., R.S., Ch.
883, Sec. 1, eff. June 19, 2009.
Sec. 3863.056. COMPENSATION. A director is entitled to receive
fees of office and reimbursement for actual expenses as provided
by Section 49.060, Water Code. Sections 375.069 and 375.070,
Local Government Code, do not apply to the board.
Added by Acts 2009, 81st Leg., R.S., Ch.
883, Sec. 1, eff. June 19, 2009.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 3863.101. DEVELOPMENT CORPORATION POWERS. The district may
exercise the powers given to a development corporation under
Chapter 505, Local Government Code, including the power to own,
operate, acquire, construct, lease, improve, or maintain a
project described by that chapter.
Added by Acts 2009, 81st Leg., R.S., Ch.
883, Sec. 1, eff. June 19, 2009.
Sec. 3863.102. AGREEMENTS; GRANTS. (a) The district may make
an agreement with or accept a gift, grant, or loan from any
person.
(b) The implementation of a project is a governmental function
or service for the purposes of Chapter 791, Government Code.
Added by Acts 2009, 81st Leg., R.S., Ch.
883, Sec. 1, eff. June 19, 2009.
Sec. 3863.103. AUTHORITY TO CONTRACT FOR LAW ENFORCEMENT
SERVICES. To protect the public interest, the district may
contract with a qualified person, including Travis County, for
the provision of law enforcement services in the district for a
fee.
Added by Acts 2009, 81st Leg., R.S., Ch.
883, Sec. 1, eff. June 19, 2009.
Sec. 3863.104. MEMBERSHIP IN CHARITABLE ORGANIZATIONS. The
district may join and pay dues to a charitable or nonprofit
organization that performs a service or provides an activity
consistent with the furtherance of a district purpose.
Added by Acts 2009, 81st Leg., R.S., Ch.
883, Sec. 1, eff. June 19, 2009.
Sec. 3863.105. ECONOMIC DEVELOPMENT PROGRAMS. (a) The district
may establish and provide for the administration of one or more
programs to promote state or local economic development and to
stimulate business and commercial activity in the district,
including programs to:
(1) make loans and grants of public money; and
(2) provide district personnel and services.
(b) The district has all of the powers of a municipality under
Chapter 380, Local Government Code.
Added by Acts 2009, 81st Leg., R.S., Ch.
883, Sec. 1, eff. June 19, 2009.
Sec. 3863.106. STRATEGIC PARTNERSHIP AGREEMENT. The district
may negotiate and enter into a written strategic partnership with
a municipality under Section 43.0751, Local Government Code.
Added by Acts 2009, 81st Leg., R.S., Ch.
883, Sec. 1, eff. June 19, 2009.
Sec. 3863.107. NO EMINENT DOMAIN. The district may not exercise
the power of eminent domain.
Added by Acts 2009, 81st Leg., R.S., Ch.
883, Sec. 1, eff. June 19, 2009.
Sec. 3863.108. ANNEXATION OR EXCLUSION OF LAND. (a) The
district may annex land as provided by Subchapter J, Chapter 49,
Water Code.
(b) The district may exclude land as provided by Subchapter J,
Chapter 49, Water Code. Section 375.044(b), Local Government
Code, does not apply to the district.
Added by Acts 2009, 81st Leg., R.S., Ch.
883, Sec. 1, eff. June 19, 2009.
SUBCHAPTER D. PUBLIC PARKING FACILITIES
Sec. 3863.151. PARKING FACILITIES AUTHORIZED; OPERATION BY
PRIVATE ENTITY. (a) The district may acquire, lease as lessor
or lessee, construct, develop, own, operate, and maintain parking
facilities or a system of parking facilities, including:
(1) lots, garages, parking terminals, or other structures or
accommodations for parking motor vehicles off the streets; and
(2) equipment, entrances, exits, fencing, and other accessories
necessary for safety and convenience in parking vehicles.
(b) A parking facility of the district may be leased to or
operated on behalf of the district by an entity other than the
district.
(c) The district's parking facilities are a program authorized
by the legislature under Section 52-a, Article III, Texas
Constitution.
(d) The district's parking facilities serve the public purposes
of the district and are owned, used, and held for a public
purpose even if leased or operated by a private entity for a term
of years.
Added by Acts 2009, 81st Leg., R.S., Ch.
883, Sec. 1, eff. June 19, 2009.
Sec. 3863.152. RULES. The district may adopt rules governing
the district's public parking facilities.
Added by Acts 2009, 81st Leg., R.S., Ch.
883, Sec. 1, eff. June 19, 2009.
Sec. 3863.153. FINANCING OF PUBLIC PARKING FACILITIES. (a) The
district may use any of its resources, including revenue,
assessments, taxes, or grant or contract proceeds, to pay the
cost of acquiring or operating public parking facilities.
(b) The district may:
(1) set, charge, impose, and collect fees, charges, or tolls for
the use of the district's public parking facilities; and
(2) issue bonds or notes to finance the cost of the district's
public parking facilities.
Added by Acts 2009, 81st Leg., R.S., Ch.
883, Sec. 1, eff. June 19, 2009.
Sec. 3863.154. ROAD IMPROVEMENTS. (a) Before development
begins, the district must obtain a traffic impact analysis
performed by a qualified independent traffic consultant for the
purpose of determining the impact of increased traffic caused by
the development of property in the district on Paleface Ranch
Road or other major roads connecting the district to State
Highway 71. The traffic impact analysis must identify the
district's proportionate impact on the roads, based on the daily
average number of trips to be generated from the district
compared to the total daily average number of trips estimated to
be generated from the total service area for the roads at full
development.
(b) The district or a developer of land in the district shall
pay the district's proportionate share of the costs or design and
construct the district's proportionate share necessary to improve
roads as needed to maintain the normal level of service on
Paleface Ranch Road or any other connector roads. The payments
or improvements shall be phased to meet the increased traffic.
(c) This section does not obligate the district to participate
in the construction or financing of State Highway 71 or any other
state highway.
Added by Acts 2009, 81st Leg., R.S., Ch.
883, Sec. 1, eff. June 19, 2009.
SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS
Sec. 3863.201. DISBURSEMENTS AND TRANSFERS OF MONEY. The board
by resolution shall establish the number of directors' signatures
and the procedure required for a disbursement or transfer of the
district's money.
Added by Acts 2009, 81st Leg., R.S., Ch.
883, Sec. 1, eff. June 19, 2009.
Sec. 3863.202. MONEY USED FOR IMPROVEMENTS OR SERVICES. The
district may acquire, construct, finance, operate, or maintain
any improvement or service authorized under this chapter or
Chapter 375, Local Government Code, using any money available to
the district.
Added by Acts 2009, 81st Leg., R.S., Ch.
883, Sec. 1, eff. June 19, 2009.
Sec. 3863.203. PETITION REQUIRED FOR FINANCING SERVICES AND
IMPROVEMENTS WITH ASSESSMENTS. (a) The board may not finance a
service or improvement project with assessments under this
chapter unless a written petition requesting that service or
improvement has been filed with the board.
(b) A petition filed under Subsection (a) must be signed by the
owners of a majority of the assessed value of real property in
the district subject to assessment according to the most recent
certified tax appraisal roll for Travis County.
Added by Acts 2009, 81st Leg., R.S., Ch.
883, Sec. 1, eff. June 19, 2009.
Sec. 3863.204. METHOD OF NOTICE FOR HEARING. The district may
mail the notice required by Section 375.115(c), Local Government
Code, by certified or first class United States mail. The board
shall determine the method of mailing notice.
Added by Acts 2009, 81st Leg., R.S., Ch.
883, Sec. 1, eff. June 19, 2009.
Sec. 3863.205. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a) The
board by resolution may impose and collect an assessment for any
purpose authorized by this chapter in all or any part of the
district.
(b) An assessment, a reassessment, or an assessment resulting
from an addition to or correction of the assessment roll by the
district, penalties and interest on an assessment or
reassessment, an expense of collection, and reasonable attorney's
fees incurred by the district:
(1) are a first and prior lien against the property assessed;
(2) are superior to any other lien or claim other than a lien or
claim for county, school district, or municipal ad valorem taxes;
and
(3) are the personal liability of and a charge against the
owners of the property even if the owners are not named in the
assessment proceedings.
(c) The lien is effective from the date of the board's
resolution imposing the assessment until the date the assessment
is paid. The board may enforce the lien in the same manner that
the board may enforce an ad valorem tax lien against real
property.
(d) The board may make a correction to or deletion from the
assessment roll that does not increase the amount of assessment
of any parcel of land without providing notice and holding a
hearing in the manner required for additional assessments.
Added by Acts 2009, 81st Leg., R.S., Ch.
883, Sec. 1, eff. June 19, 2009.
Sec. 3863.206. UTILITY PROPERTY EXEMPT FROM IMPACT FEES AND
ASSESSMENTS. The district may not impose an impact fee or
assessment on the property, including the equipment,
rights-of-way, facilities, or improvements, of:
(1) an electric utility or a power generation company as defined
by Section 31.002, Utilities Code;
(2) a gas utility as defined by Section 101.003 or 121.001,
Utilities Code;
(3) a telecommunications provider as defined by Section 51.002,
Utilities Code; or
(4) a person who provides to the public cable television or
advanced telecommunications services.
Added by Acts 2009, 81st Leg., R.S., Ch.
883, Sec. 1, eff. June 19, 2009.
Sec. 3863.207. RESIDENTIAL PROPERTY. Section 375.161, Local
Government Code, does not apply to a tax imposed by the district
or to a required payment for a service provided by the district,
including water and sewer service.
Added by Acts 2009, 81st Leg., R.S., Ch.
883, Sec. 1, eff. June 19, 2009.
Sec. 3863.208. OPERATION AND MAINTENANCE TAX. (a) If
authorized at an election held in accordance with Section
3863.212, the district may impose an annual operation and
maintenance tax on taxable property in the district in accordance
with Section 49.107, Water Code, for any district purpose,
including to:
(1) maintain and operate the district;
(2) construct or acquire improvements; or
(3) provide a service.
(b) The board shall determine the tax rate. The rate may not
exceed the rate approved at the election.
(c) Section 49.107(h), Water Code, does not apply to the
district.
Added by Acts 2009, 81st Leg., R.S., Ch.
883, Sec. 1, eff. June 19, 2009.
Sec. 3863.209. CONTRACT TAXES. (a) In accordance with Section
49.108, Water Code, the district may impose a tax other than an
operation and maintenance tax and use the revenue derived from
the tax to make payments under a contract after the provisions of
the contract have been approved by a majority of the district
voters voting at an election held for that purpose.
(b) A contract approved by the district voters may contain a
provision stating that the contract may be modified or amended by
the board without further voter approval.
Added by Acts 2009, 81st Leg., R.S., Ch.
883, Sec. 1, eff. June 19, 2009.
Sec. 3863.210. AUTHORITY TO BORROW MONEY AND TO ISSUE BONDS.
(a) The district may borrow money on terms and conditions as
determined by the board. Section 375.205, Local Government Code,
does not apply to a loan, line of credit, or other borrowing from
a bank or financial institution secured by revenue other than ad
valorem taxes.
(b) The district may issue bonds, notes, or other obligations
payable wholly or partly from ad valorem taxes, sales and use
taxes, assessments, impact fees, revenue, contract payments,
grants, or other district money, or any combination of those
sources of money, to pay for any authorized district purpose.
(c) The limitation on the outstanding principal amount of bonds,
notes, and other obligations set forth in Section 49.4645, Water
Code, does not apply to the district.
Added by Acts 2009, 81st Leg., R.S., Ch.
883, Sec. 1, eff. June 19, 2009.
Sec. 3863.211. TAXES FOR BONDS. At the time the district issues
bonds payable wholly or partly from ad valorem taxes, the board
shall provide for the annual imposition of a continuing direct
annual ad valorem tax, without limit as to rate or amount, while
all or part of the bonds are outstanding as required and in the
manner provided by Sections 54.601 and 54.602, Water Code.
Added by Acts 2009, 81st Leg., R.S., Ch.
883, Sec. 1, eff. June 19, 2009.
Sec. 3863.212. ELECTIONS REGARDING TAXES AND BONDS. (a) The
district may issue, without an election, bonds, notes, and other
obligations secured by:
(1) revenue other than ad valorem taxes; or
(2) contract payments described by Section 3863.209.
(b) The district must hold an election in the manner provided by
Subchapter L, Chapter 375, Local Government Code, to obtain voter
approval before the district may impose an ad valorem tax or
sales and use tax or issue bonds payable from ad valorem taxes.
(c) Section 375.243, Local Government Code, does not apply to
the district.
(d) All or any part of any facilities or improvements which may
be acquired by a district by the issuance of its bonds may be
included in one single proposition to be voted on at the election
or the bonds may be submitted in several propositions.
Added by Acts 2009, 81st Leg., R.S., Ch.
883, Sec. 1, eff. June 19, 2009.
Sec. 3863.213. COMPETITIVE BIDDING. Subchapter I, Chapter 49,
Water Code, applies to the district. Sections 375.221 and
375.223, Local Government Code, do not apply to the district.
Added by Acts 2009, 81st Leg., R.S., Ch.
883, Sec. 1, eff. June 19, 2009.
Sec. 3863.214. TAX AND ASSESSMENT ABATEMENTS. The district may
grant in the manner authorized by Chapter 312, Tax Code, an
abatement for a tax or assessment owed to the district.
Added by Acts 2009, 81st Leg., R.S., Ch.
883, Sec. 1, eff. June 19, 2009.
SUBCHAPTER F. TAXES FOR CERTAIN DEFINED AREAS AND DESIGNATED
PROPERTY
Sec. 3863.251. AUTHORITY TO ESTABLISH DEFINED AREAS OR
DESIGNATED PROPERTY. The district may define areas or designate
certain property of the district to pay for improvements,
facilities, or services that primarily benefit that area or
property and do not generally and directly benefit the district
as a whole.
Added by Acts 2009, 81st Leg., R.S., Ch.
883, Sec. 1, eff. June 19, 2009.
Sec. 3863.252. PROCEDURE FOR ELECTION. (a) Before the district
may impose an ad valorem tax or issue bonds payable from ad
valorem taxes of the area defined or property designated under
Section 3863.251, the board must call and hold an election as
provided by Section 3863.212 only in the defined area or in the
boundaries of the designated property.
(b) The board may submit the proposition to the voters on the
same ballot to be used in another election.
Added by Acts 2009, 81st Leg., R.S., Ch.
883, Sec. 1, eff. June 19, 2009.
Sec. 3863.253. DECLARING RESULT AND ISSUING ORDER. (a) If a
majority of the voters voting at the election approve the
proposition or propositions, the board shall declare the results
and by order shall establish the defined area and describe it by
metes and bounds or designate the specific property.
(b) A court may not review the board's order except on the
ground of fraud, palpable error, or arbitrary and confiscatory
abuse of discretion.
Added by Acts 2009, 81st Leg., R.S., Ch.
883, Sec. 1, eff. June 19, 2009.
Sec. 3863.254. TAXES FOR SERVICES, IMPROVEMENTS, AND FACILITIES
IN DEFINED AREAS OR DESIGNATED PROPERTY. On voter approval and
adoption of the order described in Section 3863.253, the district
may apply separately, differently, equitably, and specifically
its taxing power and lien authority to the defined area or
designated property to provide money to construct, administer,
maintain, and operate services, improvements, and facilities that
primarily benefit the defined area or designated property.
Added by Acts 2009, 81st Leg., R.S., Ch.
883, Sec. 1, eff. June 19, 2009.
Sec. 3863.255. ISSUANCE OF BONDS AND IMPOSITION OF TAXES FOR
DEFINED AREA OR DESIGNATED PROPERTY. After the order under
Section 3863.253 is adopted, the district may issue bonds to
provide for any land, improvements, facilities, plants,
equipment, and appliances for the defined area or designated
property.
Added by Acts 2009, 81st Leg., R.S., Ch.
883, Sec. 1, eff. June 19, 2009.
SUBCHAPTER G. SALES AND USE TAX
Sec. 3863.301. MEANINGS OF WORDS AND PHRASES. Words and phrases
used in this subchapter that are defined by Chapters 151 and 321,
Tax Code, have the meanings assigned by Chapters 151 and 321, Tax
Code.
Added by Acts 2009, 81st Leg., R.S., Ch.
883, Sec. 1, eff. June 19, 2009.
Sec. 3863.302. APPLICABILITY OF CERTAIN TAX CODE PROVISIONS.
(a) Except as otherwise provided by this subchapter, Subtitles A
and B, Title 2, Tax Code, and Chapter 151, Tax Code, apply to
taxes imposed under this subchapter and to the administration and
enforcement of those taxes in the same manner that those laws
apply to state taxes.
(b) Chapter 321, Tax Code, relating to municipal sales and use
taxes, applies to the application, collection, change, and
administration of a sales and use tax imposed under this
subchapter to the extent consistent with this chapter, as if
references in Chapter 321, Tax Code, to a municipality referred
to the district and references to a governing body referred to
the board.
(c) Sections 321.106, 321.401, 321.402, 321.403, 321.404,
321.406, 321.409, 321.506, 321.507, and 321.508, Tax Code, do not
apply to a tax imposed under this subchapter.
Added by Acts 2009, 81st Leg., R.S., Ch.
883, Sec. 1, eff. June 19, 2009.
Sec. 3863.303. AUTHORIZATION; ELECTION. (a) The district may
adopt a sales and use tax to serve the purposes of the district
after an election in which a majority of the voters of the
district voting in the election authorize the adoption of the
tax.
(b) The board by order may call an election to authorize a sales
and use tax. The election may be held with any other district
election.
(c) The district shall provide notice of the election and shall
hold the election in the manner prescribed by Section 3863.212.
(d) The ballots shall be printed to provide for voting for or
against the proposition: "Authorization of a sales and use tax
in the Travis County Improvement District No. 1 at a rate not to
exceed _____ percent."
Added by Acts 2009, 81st Leg., R.S., Ch.
883, Sec. 1, eff. June 19, 2009.
Sec. 3863.304. ABOLISHING SALES AND USE TAX. (a) Except as
provided by Subsection (b), the board may abolish the sales and
use tax without an election.
(b) The board may not abolish the sales and use tax if the
district has outstanding debt secured by the tax.
Added by Acts 2009, 81st Leg., R.S., Ch.
883, Sec. 1, eff. June 19, 2009.
Sec. 3863.305. SALES AND USE TAX RATE. (a) On adoption of the
tax authorized by this subchapter, there is imposed a tax on the
receipts from the sale at retail of taxable items in the
district, and an excise tax on the use, storage, or other
consumption within the district of taxable items purchased,
leased, or rented from a retailer in the district during the
period that the tax is in effect.
(b) The board shall determine the rate of the tax, which may be
in one-eighth of one percent increments not to exceed the maximum
rate authorized by the district voters at the election. The
board may decrease the tax rate to the extent it does not impair
any outstanding debt or obligations payable from the tax.
(c) The rate of the excise tax is the same as the rate of the
sales tax portion of the tax and is applied to the sales price of
the taxable item.
Added by Acts 2009, 81st Leg., R.S., Ch.
883, Sec. 1, eff. June 19, 2009.
SUBCHAPTER H. HOTEL OCCUPANCY TAXES
Sec. 3863.351. HOTEL OCCUPANCY TAX. (a) In this section,
"hotel" has the meaning assigned by Section 156.001, Tax Code.
(b) For purposes of this section, a reference in Chapter 351,
Tax Code, to a municipality is a reference to the district and a
reference in Chapter 351, Tax Code, to the municipality's
officers or governing body is a reference to the board.
(c) Except as otherwise provided by this section, Subchapter A,
Chapter 351, Tax Code, governs a hotel occupancy tax authorized
by this section, including the collection of the tax.
(d) The district may impose a hotel occupancy tax and may use
revenue from the tax for any district purpose that is also an
authorized use of a municipality's hotel occupancy tax revenue
under Chapter 351, Tax Code.
(e) The board by order may impose, repeal, increase, or decrease
the rate of a tax on a person who, under a lease, concession,
permit, right of access, license, contract, or agreement, pays
for the use or possession or for the right to the use or
possession of a room that:
(1) is in a hotel located in the district's boundaries;
(2) costs $2 or more each day; and
(3) is ordinarily used for sleeping.
(f) The amount of the tax may not exceed seven percent of the
price paid for a room in a hotel.
(g) The district may examine and receive information related to
the imposition of hotel occupancy taxes to the same extent as if
the district were a municipality.
Added by Acts 2009, 81st Leg., R.S., Ch.
883, Sec. 1, eff. June 19, 2009.