2005 Texas Local Government Code CHAPTER 387. COUNTY ASSISTANCE DISTRICT

LOCAL GOVERNMENT CODE

CHAPTER 387. COUNTY ASSISTANCE DISTRICT


	§ 387.001. DEFINITION.  In this chapter, "district" means 
a county assistance district created under this chapter.

Added by Acts 1999, 76th Leg., ch. 1283, § 1, eff. June 18, 1999.  
Renumbered from V.T.C.A., Local Government Code § 384.001 by 
Acts 2003, 78th Leg., ch. 1275, § 2(110), eff. Sept. 1, 2003.


	§ 387.002. APPLICABILITY.  This chapter applies only to a 
county that has a population of less than 45,000 if:
		(1)  any portion of the county is included in an 
authority governed by Chapter 451 or 452, Transportation Code;  or
		(2)  the county does not contain any part of a 
municipality that, before the commissioners court of the county 
calls an election on the question of creating a district under 
Section 387.003, has:
			(A)  created a development corporation under 
Section 4A or 4B, Development Corporation Act of 1979 (Article 
5190.6, Vernon's Texas Civil Statutes);  or
			(B)  imposed a sales and use tax that when 
combined with any other sales and use tax applicable in the 
municipality, exceeds two percent.

Added by Acts 1999, 76th Leg., ch. 1283, § 1, eff. June 18, 1999.  
Renumbered from V.T.C.A., Local Government Code § 384.002 by 
Acts 2003, 78th Leg., ch. 1275, § 2(110), eff. Sept. 1, 2003.  
Amended by Acts 2005, 79th Leg., ch. 1252, § 1, eff. June 18, 
2005.


	§ 387.003. CREATION AND FUNCTIONS OF DISTRICT.  (a) The 
commissioners court of the county may call an election on the 
question of creating a county assistance district under this 
chapter to perform the following functions in the district:
		(1)  the construction, maintenance, or improvement of 
roads or highways;    
		(2)  the provision of law enforcement and detention 
services;               
		(3)  the maintenance or improvement of libraries, 
museums, parks, or other recreational facilities;
		(4)  the provision of services that benefit the public 
health or welfare;  or
		(5)  the promotion of economic development and tourism.                       
	(b)  The order calling the election must:                                      
		(1)  define the boundaries of the district to include 
any portion of the county that is not located in an authority 
governed by Chapter 451 or 452, Transportation Code;  and
		(2)  call for the election to be held within those 
boundaries.              
	(c)  The ballot at the election must be printed to permit 
voting for or against the proposition:  "Authorizing the creation 
of the ____ County Assistance District (insert name of district) 
and the imposition of a sales and use tax at the rate of ____ of one 
percent (insert one-eighth, one-fourth, three-eighths, or 
one-half, as appropriate) for the purpose of financing the 
operations of the district."
	(d)  The district is created if a majority of the votes 
received at the election favor the creation of the district.
	(e)  If a majority of the votes received at the election are 
against the creation of the district, another election on the 
question of creating a county assistance district may not be held in 
the county before the first anniversary of the most recent election 
concerning the creation of a district.
	(f)  The commissioners court may call an election to be held 
in an area of the county that is not located in a district created 
under this section to determine whether the area should be included 
in the district and whether the district's sales and use tax should 
be imposed in the area.  An election may not be held in an area that 
is included in an authority governed by Chapter 451 or 452, 
Transportation Code.  The area is included in the district and the 
sales and use tax is imposed if a majority of the votes received at 
the election favor inclusion in the district and imposition of the 
sales and use tax.

Added by Acts 1999, 76th Leg., ch. 1283, § 1, eff. June 18, 1999.  
Renumbered from V.T.C.A., Local Government Code § 384.003 by 
Acts 2003, 78th Leg., ch. 1275, § 2(110), eff. Sept. 1, 2003.  
Amended by Acts 2005, 79th Leg., ch. 1252, § 2, eff. June 18, 
2005.


	§ 387.004. POLITICAL SUBDIVISION.  A district is a 
political subdivision of this state.

Added by Acts 1999, 76th Leg., ch. 1283, § 1, eff. June 18, 1999.  
Renumbered from V.T.C.A., Local Government Code § 384.004 by 
Acts 2003, 78th Leg., ch. 1275, § 2(110), eff. Sept. 1, 2003.


	§ 387.005. GOVERNING BODY.  (a) The commissioners court 
of the county in which the district is created is the governing body 
of the district.
	(b)  A member of the commissioners court is not entitled to 
compensation for service on the governing body of the district but 
is entitled to reimbursement for actual and necessary expenses.

Added by Acts 1999, 76th Leg., ch. 1283, § 1, eff. June 18, 1999.  
Renumbered from V.T.C.A., Local Government Code § 384.005 by 
Acts 2003, 78th Leg., ch. 1275, § 2(110), eff. Sept. 1, 2003.


	§ 387.006. GENERAL POWERS OF DISTRICT.  (a) A district 
may:               
		(1)  perform any act necessary to the full exercise of 
the district's functions;
		(2)  accept a grant or loan from:                                             
			(A)  the United States;                                                      
			(B)  an agency or political subdivision of this 
state;  or                 
			(C)  a public or private person;                                             
		(3)  acquire, sell, lease, convey, or otherwise dispose 
of property or an interest in property under terms determined by the 
district;
		(4)  employ necessary personnel;  and                                         
		(5)  adopt rules to govern the operation of the 
district and its employees and property.
	(b)  A district may contract with a public or private person 
to perform any act the district is authorized to perform under this 
chapter.
	(c)  A district may not levy an ad valorem tax.                                

Added by Acts 1999, 76th Leg., ch. 1283, § 1, eff. June 18, 1999.  
Renumbered from V.T.C.A., Local Government Code § 384.006 by 
Acts 2003, 78th Leg., ch. 1275, § 2(110), eff. Sept. 1, 2003.


	§ 387.007. SALES AND USE TAX.  (a) A district by order may 
impose a sales and use tax under this chapter to finance the 
operations of the district only if the tax is approved at an 
election held under Section 387.003.
	(b)  A district may not adopt a sales and use tax under this 
chapter if the adoption of the tax would result in a combined tax 
rate of all local sales and use taxes of more than two percent in any 
location in the district.

Added by Acts 1999, 76th Leg., ch. 1283, § 1, eff. June 18, 1999.  
Renumbered from V.T.C.A., Local Government Code § 384.007 and 
amended by Acts 2003, 78th Leg., ch. 1275, § 2(110), 3(36), eff. 
Sept. 1, 2003.


	§ 387.008. TAX CODE APPLICABLE.  (a) Chapter 323, Tax 
Code, governs the imposition, computation, administration, 
collection, and remittance of a tax authorized under this chapter 
except as inconsistent with this chapter.
	(b)  Section 323.101(b), Tax Code, does not apply to a tax 
authorized by this chapter.

Added by Acts 1999, 76th Leg., ch. 1283, § 1, eff. June 18, 1999.  
Renumbered from V.T.C.A., Local Government Code § 384.008 by 
Acts 2003, 78th Leg., ch. 1275, § 2(110), eff. Sept. 1, 2003.


	§ 387.009. TAX RATE.  The rate of a tax adopted under this 
chapter must be one-eighth, one-fourth, three-eighths, or one-half 
of one percent.

Added by Acts 1999, 76th Leg., ch. 1283, § 1, eff. June 18, 1999.  
Renumbered from V.T.C.A., Local Government Code § 384.009 by 
Acts 2003, 78th Leg., ch. 1275, § 2(110), eff. Sept. 1, 2003.


	§ 387.010. REPEAL OR RATE CHANGE.  (a) A district that has 
adopted a sales and use tax under this chapter may, by order and 
subject to Section 387.007(b), change the rate of the tax or repeal 
the tax if the change or repeal is approved by a majority of the 
votes received in the district at an election held for that purpose.
	(b)  The tax may be changed under Subsection (a) in one or 
more increments of one-eighth of one percent to a maximum of 
one-half of one percent.
	(c)  The ballot for an election to change the tax shall be 
printed to permit voting for or against the proposition:  "The 
change of a sales and use tax for the ____ County Assistance 
District (insert name of district) from the rate of ____ of one 
percent (insert one-fourth, three-eighths, or one-half, as 
appropriate) to the rate of ____ of one percent (insert one-fourth, 
three-eighths, or one-half, as appropriate)."
	(d)  The ballot for the election to repeal the tax shall be 
printed to permit voting for or against the proposition:  "The 
repeal of the sales and use tax for financing the __________ County 
Assistance District (insert name of district)."

Added by Acts 1999, 76th Leg., ch. 1283, § 1, eff. June 18, 1999.  
Renumbered from V.T.C.A., Local Government Code § 384.010 and 
amended by Acts 2003, 78th Leg., ch. 1275, § 2(110), 3(37), eff. 
Sept. 1, 2003.


	§ 387.011. IMPOSITION OF TAX.  (a) If the district adopts 
the tax, a tax is imposed on the receipts from the sale at retail of 
taxable items in the district at the rate approved at the election.
	(b)  There is also imposed an excise tax on the use, storage, 
or other consumption in the district of tangible personal property 
purchased, leased, or rented from a retailer during the period that 
the tax is effective in the district.  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 sale price of the tangible personal property.

Added by Acts 1999, 76th Leg., ch. 1283, § 1, eff. June 18, 1999.  
Renumbered from V.T.C.A., Local Government Code § 384.011 by 
Acts 2003, 78th Leg., ch. 1275, § 2(110), eff. Sept. 1, 2003.


	§ 387.012. EFFECTIVE DATE OF TAX.  The adoption of the 
tax, the change of the tax rate, or the repeal of the tax takes 
effect on the first day of the first calendar quarter occurring 
after the expiration of the first complete quarter occurring after 
the date the comptroller receives a notice of the results of the 
election adopting, changing, or repealing the tax.

Added by Acts 1999, 76th Leg., ch. 1283, § 1, eff. June 18, 1999.  
Renumbered from V.T.C.A., Local Government Code § 384.012 by 
Acts 2003, 78th Leg., ch. 1275, § 2(110), eff. Sept. 1, 2003.