R79-12 5-21-79RESOLUTION NO.
R79-12
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF PEARLAND, TEXAS, OPPOSING THE PASSAGE OF
SENATE BILL 983 RELATING TO THE DISTRIBUTION
OF SALES TAX FUNDS.
WHEREAS, the Pearland City Council has reviewed Senate
Bill 983 relating to allocation of revenue collected under
the Local Sales Tax Act; and
WHEREAS, the Pearland City Council feels that the one
Percent (1%) City Sales Tax under the present structure is
a fair and equitable tax; and
WHEREAS, the Pearland City Council feels distribution
of the one percent (1%) sales tax funds based on population would
be an injustice to the citizens of Pearland,
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF PEARLAND THAT it hereby goes on record as opposing
Senate Bill 983 allocating distribution of sales tax funds
by population.
Be it further resolved that copies of this resolution be
forwarded to Governor Bill Clements, Lt. Governor Bill Hobby,
Speaker of the House Bill Clayton, State Senator A. R. (Babe)
Schwartz, State Representative Tom DeLay and The Texas Municipal
League, and that each of these -officials be urged to take
action to carry out the intent of this resolution.
PASSED and APPROVED this 4/ day of
A. D. 1979.
CITY PEARLANI EXAS
B aksc
Tom Reid, Mayor
BY RICHARD FISH er woul& ora than double i r " -c q
anqu travel" , a int,tonat sl'o--t eeri er
C6''otwctiustmBureatt�, . tgrevenues'"�"*'' ,``:'' t a thetrshoppmg •.µ¢ + n :y
AUStI1V — EuleSs `Seta' < Meter ^^pMeierpropos?,% ehange.f onithe .}SConsetjttentty,certaia$ieC„arerco
wantseI+salestaxrevenuesshavedon eta;rentsystemofrebating.taxrevenueWto lecttngawindfallsalestairfro'mresidetttsp
r to ity ea es tax r all es shat dhti a e,eities where people,shop and instead <,}vtth;who they have no connection ex=.
Pe p g p send tax payments back to all,eities s, cept-that2they purchase thergoods pay
that levy'such taxes 't ii ,iwhieh le sales taxes x which the
Each oily now ge ` such regenues a=� m . 4`t he Fpaid taxes irthatmumcip�t*s
crollected<wifhm its Hord us the Changingn rhtylesmade a ahang'ngn, ? -said , a
state handling fee. l',.','",61 ' *` * e9no Yzhavea made the a taxts,, prehe result; now'd >s =taxa, ,. ;withou
' tHoustoa.would take:the, bt beat'n statutory scheme iui�able to thegtax d hr entatron ° , 4
1 yet Metersat ^ Three of Mefet i feu ingpaate Me
shoulf.t4Iibill become tam Qne eompen x , ;,,,r - r •i u ,:bets iv&distriets including parts of H,
son esfimates $33 milhoiei year in sales rNo loonnger-are he purchasers, that is + , rin County were-, as criticat..ol the bill
taxesov� be routed. too bet cities and,. J xpay.&rs riaccwallvJoeatedv: .,aea..i-eu �-,---.
towt4sq 4%, r sR:es ..., .:.n.:a> •amu,. .. a k. �as_aa:< ...�r. _ `. :.
G• Eteetet officials here
of$y critics
heeipposal x e
t. Jloustoa: Mayor Ain, ails,tfg,
proposabX"ridiculous raddd that
"might'edrisider, such ani , •rif the
agreed ttx'share in, the" . filling n H
oui nil. ,tholes ti. ,s .e{sicft t"
F+tF #(.404r'�u' Z A t
F. N :
a1d oppose the b lg ous . n Con .'
, ttolte Kethy whitmtrre ser sr. -'said,!t:,
�nabJe'or th
re oo thetities t ys collect.
�t inteilmant.F an : ancusof'sam
e _ with Mccotit " assessment of
,t, -land add ,L ' ewe; b '
it ge.44.Yer a fs $ r
. OSS ti
in �'=fggalns
'• thH
like
4`
Y.Y1
ila
cm
Pra
uusf,anothetongo 4hhose schemes tto
pets le'nJsomeiparte- of the state to err
a heave tither of lire taz burden
piers °
t
hilthat would dmsuch finanlciaderma
to -the state s,two Largest cities? k -
Meier noted•that basedn iiia ocgmpa�r
a r son, 815 percent obTgxas ctttes gam rev
eek V , nue„ and 12 5 •percent lose t<hJmy gw
'end o e p !d a y ygt`r ri( r 'R Y '`' ', , ' ITarrantl tCgnnty, ;fear cittert ishidmg ,
ue• `vsale�ta�' .'^'lt < , , r7 y d`onesi,ityhg�., glti esents;parts of Harm, Fort Worth)" revenue bu the.county 0
to t rid= tBend:eounttes' aid he, ho $he r verall
onkel reltha , r, ws Fe _,� y J? gains said 7 . r
k q '11Lneverdna to a t of committee Of, the r est ities m 'Apt Bonk
iliLages, k• . c ti' £ $1t 4€�> tP> Y.'
byt e _ taz r v carie >cilt,„doesetFtlithaYe to get outs $ao Antonio wouldgatn revenu�soin
itousto' by $b ' ,traelt shoes andst stapd�y�{on my{ fee gra 4$9 milliomaygacbased on Melet irompu
++s•,d 2 a`:..ig, • � ; ,+ si"n ssaf'aa hadnlore l ary W a Y ;The'- • <; �
owoultl 6ea ig osei'as ftht pnessat he�hadno;realdesiretacha , + ,The *fiexas�Maru
..,,,*41-6 413 milli' ea ', rage �engeMeier reputation as a bast masteryg uai6FTI�s *ffi
e eigtftafihbuste abut g.id hewill if tbekbill stakes ria poslyon on Ilio
Oen irnha tY c>
sgets to -the Sen2te ilio[.`` ',t- a -,h aMn .� 3 .
.g .M preclrook{th _ Ithe46' rill° How would"thelit Cttlesthatsare,t,
own.hotnetto
-neverkfly s a ot'nty{, e I gt big losers injthe,Meer planmake u the'
e Brooks said ,i l n.. . f ' Joss in revenues?
ifB,,ropksgsaut t btl'tstcontrary ,tgtth »- As;fa; a S.euston is coneerned that
t w Tole concep, o tbJ sales tax, Ewht tf >�g s'gniflcant.;Joss , and tare there
allows ell c'ce :: rk pectf'c munuipahttes would:;haveaio bg some waytproyidet;to)
to pay for the sgrviges they reeewe ' , afford -the city anopportumty So adjust to?
Sen A R'rl3abe,Schwartz who•rep , thattype of loss;gthe said ts3 p et i
tents Hagrta ant.Falgest9it countte; erre But 7ihthe JgngFrun llgust§p aqd other-
11eaotSj s.,bill wouldpztysolve agsingletc revenue lose ` r oin Gaye to ad
noble ,; .s It just tkreeugro a s "if~, bili
idhhedeg'stattwyoul oleate beconl tai1,14ietersaid ev1
mote probleiritthan traolvedtboeai sg t5 here vgu d'tb mgney come Goin?
ett}es hke.HaligiehtwatlIcl be fore tgi don n 4qw r0 '� wher�$shid Jefe.
raicetheSneriey_they'lose to=other mumcirnor ao4 knower -.thiaitmi,7,4 i how•
r palettes by�somejoth$ermeaps besides the they wi.�luldadlusty , vIB i
satestax y� ?;4vlt. l'tQli l�introdueec4 gntyntly;,
Currently, purchasers, in;Texakft,o F, MeieLsa ticiI aver t hear m toanyw
an'cket on the dollllananacomb'inezd s afe a rt
Dalian t 4fo�ti.5tonxi but
1' ,.. ' it Ftit:•..W ..,.-r%,4 .-rx„cNla,- «...,. rk3e
. and city sales•taz� (Residents ofIioaston'h�wi
I andother areas that use the Metropolitan='
f Transit Authority aya lcent. per dolts
tax, the extraseggoingto the
the tax•mone ,,collecby the=mer=
chant is sent to:the statecomptroller. They
• comptroller then turns penny of eacli'
nickel tesslansadmmistrative and-ja
serve fiind:withheld - to thecities that'
• have 'mposed the mun'ctpalsales,tax%_
• That ming- is allocated;, to.the,c`tttes s"
based bathe zip code addressp the ei=
' chant who collected the tax.•` .
Meier's tan, in'effeot would take alt`
`.,,: P
those city tsaies tax' pennies and `thrgw°:
them to hta poij be distributed by thn,
comptroller bas`e‘tonEthe;"ppoopulationgbf=
each cityrand-town that collects'a sales".
ttax:•—' currently some 908 Sitio hjTexa§; •.'
Returningr'`salee�'taxes.to4the"ttc't esu;
based orr-; population; rather than %ales j
volumes wouldsattut resident aLO.gfti t
'-munit'es tocat,ha k`o their rehapceFon
property taxes as a's, a"revenue„ souzc• y.
Meier arguecL
,. He contendg "t afx,� qurreni systg
€Stves'ha1ot4me to 1 t ttareasr'alioub.
tbeuefit` +the fay tthhe°tpu 'ne"eses't qh
e>.tt ad vaforeit`fpr.. •text tax. Ilsagyir
alsaare Ger efi ng frottt'the r sates
eier`s corn rtson'
listrea w nnerslt ioserston fax par
Cr etemistinBureau. rt3
A[Tgl —4Housto'n would be th
184 er,in•.a proposa-bt.Euless.`
=Sen iBil[Meier to realloeate'the dis-.r1
tnbutioti'of city sales tax copse= .`
tions among Texas munic pahties r i
•.office here shows,Hoori�'s annual
•salestax revenue 'wool
3/4
$55 745 870, under therlern s or is
bill which would distribute revenue'
on the bases of popuiatioj
I t taoss otmore ha
.,.,:aii,iliotikftniSthei4apitilithiestfa
lienifr Me er s figures sho88;879 i7
• C UtI9ning ,that4 histfiigur e.
onlestimates designed; to show:
relat've impact 'iMelerlprovlded•.';
;da yromwwhichP'ehls 1st of.:,
Houston:areaa'®mners.$ p4lei era
unitei t e• Meleir pro ca
▪ drawt� rwcr; 4 be
ri'• '3(a uacwouldg a t
6a4 dijeeark $51,787 mti97g
41onA��r
528int
current° : `gain$100,00
$1974 3991 - _
.;a. a $au1�ii $ - 00-,
� ME�{B`EI M Pag
'y;Y ,*•7'?z
Mese s comparison
lists area w(nner5r ^!
r
losers on tax plan
(From Page/ c ,.
fa 1978'jY l is
• Brookshire; gain $50,000 $32t
`411m1978:~,i'
• Clear!' Lake Shores,Baur,:
$19,000; $20,901 m 1978
tin • Clute, lose $160000 $510287 ins`
1378 r a y rel ri
• Conroe ,lose $750,400' $1261 874=?
41x1978 91t I c
Der Pa`kgain $til 000+$413
606in 1978
wBtfl�tr8
1,70.,77441c$.5
`•78
Galena?$'
$30213311n 1978+
�r�4'f�a7ee3t'6
4298 ,r491
'• Hedwtt VU
$530$OEiir1
rsireeftlps
80'hw407
s Httchcoc
000
am
OW
$17060 t
60
a ri
an-Ori_:.i
so rr _ai <F 28
itt aih=$600,
om
"+,Soot 1 of
798 in07:
k•)Sprtng'*�Y
18'1339 1,,1978
4=Staffgrd t. ,e;
1it1978 ?s`M
11978,
' • Teras;; t_
1925 563019781
Tom all loci
67'342?
•tWest%<ilniyem yt`8Elac
000, $1g5a4$7i ;
�,Walle �gatn'$100Q-'$45,6
978.E g ya yrh<
-4 Webster ose X570001 19
Iy1978:w :t
-.,West:. Cal
134,8QS,in19
nq
City o/ JdnyCle Eon
April. 24, 1979
Mayor
City of Pearland
P.O. Box 1157
Pearland, TX 77581
Dear Mayor:
CITY"ANGIETON
A 10.0
P. O. BOX 726
ANGLETON, TEXAS 77515
The City Council of Angleton, Texas, is enclosing a copy of Resolution
No. 219 passed by the Angleton City Council at the regular scheduled
meeting on April 10, 1979, with respect to allocation of sales tax
funds.
The Angleton City Council opposes the method of distribution of sales
tax funds by population. We therefore request that you pass a resolution
in opposition of this bill.
Thank you for your support in this matter.
Sincerely,
01,1
ClifofS. Hicks
City Administrator
City of Angleton
2-/s)21'
1 /1
3//Y77?
/'N
•
MAR 9 )979
(P_A-en_ S B. No. f
A BILL TO BE ENTITLED
1 - AN ACT
2 relating to allocation of revenue collected under the Local Sales
3 and Use Tax Act.
4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
5 SECTION 1. Section 5(d), Local Sales and Use Tax Act, as
6 amended (Article 1066c, Vernon's Texas Civil Statutes), is amended
7 to read as follows:
8 (d) If a city determines that any person,- firm, or
9 corporation doing business in the city is not included in a report
10 - from the Comptroller, the city shall report the name and address of
11 the person, firm, or corporation to the Comptroller. On receiving
12 a report from a city the Comptroller shall' send, before the
13 expiration of a ninety (90) day period following the day the
14 Comptroller received a report from the city, an explanation to the
15 . city as to why the person, firm, or corporation is not obligated
16 for the tax imposed by the city, a statement that the person, firm,
or corporation is obligated to pay the tax and that the tax is
18 delinquent, or a certification that the perbon, firm, or
19 corporation is obligated to pay the tax and that the full amount
20 due under the tax has been credited to the trust account for cities
21 [ef-tke-eity].
22 SECTION 2. Subsection A of Section 7, Local Sales and Use
23 Tax Act (Article 1066c, Vernon's Texas Civil Statutes), is amended
24 to read as follows:
66R2497 JBN-D 1
1 A. Any local sales and use tax collected by the Comptroller
2 under this Act on behalf of cities adopting the taxes under this
3 Act [any-ei€y] shall be deposited with the State Treasurer in trust
4 and shall be kept in a single separate suspense account [€er-eaek
5 eaek-eity].
6 SECTION 3. Section 8, Local Sales and Use Tax Act (Article
7 1066c, Vernon's Texas Civil Statutes), is amended to read as
8 follows:
9 Sec. 8. A. Each city's share of all local sales and use tax
10 collected under this Act by the Comptroller shall be transmitted to
11 the Treasurer or the officer performing the functions of such
12 office of such city by the Comptroller payable to the city
13 periodically as promptly as feasible. Transmittals required under
14 this Act shall be made at least twice in each State fiscal year.
15 The funds so transmitted may be used by the city for any purpose
16 for which the general funds of the city may be used. Before
17 transmitting such funds, the Comptroller shall deduct two percent
18 (2%) of the sum collected from each such city during such period as
19 a charge by the State of Texas for its services specified in this
.. 2D Act, and the amounts so deducted,, subject to. the provisions of
...rti-
21 Section 7B of this Act, shall be deposited by the Comptroller in
22 the State Treasury to the credit of the General Revenue Fund of
23 the State.
24 B. Each city that has adopted the taxes authorized by this
25 Act and that has had the taxes in effect during the period since
26 the last preceding distribution is entitled to receive at each
27 distribution an amount equal to the balance of the trust account,
66R2497 JBN-D 2
1
less the amount that may be withheld by the Comptroller under Subsection C
t —of this section, times a fraction the numerator of which is the population
3 of the city according to the most recent available data certified as accurate
4 on a statewide basis by the Comptroller of Public Accounts and the denominator
5 of which is the population according to the most recent available data cer-
6 tified as accurate on a statewide basis by the Comptroller of Public Accounts
7 of all cities in the State that have adopted the taxes authorized under this
8 Act and have had the taxes in effect during the period since the last pre -
9 ceding distribution. If thetaxes authorized by this Act have been in effect
10 in a city during only a portion. of the period since the last preceding
11 distribution, the fraction required by this subsection may be altered by the
12 Comptroller to reduce the city's share proportionally.to the amount of time
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that the taxes were in effect and the duration of the period between the
last preceding distributionand the current distribution.
C. The Comptroller is authorized to retain in the trust [suspense]
account [e€-any-eity] a portion of the [eity's-share-e€-the] tax collected
under this Act: Such balance so retained in the [suspense] account shall not
exceed five percent (5%) of the balaride of the account ptior to a distribution
[aaeuat-remitted-to-the-city]. The Comptroller is authorized to make refunds
from the [suspense] account [e€-any-Eity] for overpayments made to the [sueh]
accounts, and to redeem dishonored checks and drafts deposited to the credit of the
account [suspense-aeeeuats-ef-sueh-eities]. When any city shall adopt the
LocalSales and Use Tax, and shall thereafter abolish such tax, the Comptroller
may retain in the [suspense] account [ef-sueh-eity] for a period of one year
five percent (5%) of the final remittance to each such city at the time of
termination of collection of such tax in such city to cover possible refunds
for overpayment of the tax and to redeem dishonored checks and drafts deposited
3
1 to the credit of the account'in payment of the taxes collected within the
E" "city [seek-aeeeunts]. After one year has elapsed after the effective date
3 of abolition of such tax in such city, the Comptroller shall remit [the
4 balanee-in-saeh-aeee nt] to the city the amount retained less the amount of
5 refunds and redemptions paid from the amount retained [and-elese-the-aeeeunt].
6 SECTION 4. (a) Sections 1, 2, and 3 of this Act take effect October
7 1, 1979.
8 (b) On or before October 1, 1979, the Comptroller of Public Accounts
9 shall establish the single trust account for all cities from which distribu-
10 tions to cities are to be made under the Local Sales and Use Tax Act as
11 amended by this Act. Except ,as provided by Subsection (c) of this seciton,
12
all tax payments made after October 1, 1979, -under the Local Sales and Use
13 Tax Act and. all prepayments of taxes under the Local Sales•and Use Tax Act
14 for the quarterly period beginning October 1, 1979, shall be deposited in
15 the single trust account.
16. (c) A11 tax payments resulting from sales of taxable items or taxable
17 uses of taxable items occurring before October 1, 1979, shall be deposited
18 to the credit of each city's suspense account as provided in the Local Sales
19 and Use Tax Act before the effective date of this Act. Each city's share of
20 tax payments credited to the city's suspense account shall be distributed to
21 the city from the city's suspense account after.October 1, 1979, in the
22 manner provided by the Local Sales and Use Tax Act before the effective date
23 of this Act,until each city's suspense account is depleted and closed.
24 (d) For the purpose of calculating the first distribution of funds from
25 the single trust account established by this section and by the amendments to
26 the Local Sales and Use Tax Act by this Act, "the last preceding distribution"
27 means October 1, 1979.
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SECTION 5. The importance of this legislation and the crowded condi-
tion of the calendars in both houses create an emergency and an imperative
public necessity that the constitutional rule requiring bills to be read on
three several days in each house be suspended, and this rule is hereby sus-
pended.