Texas Tax Code

§ 311.0123 — SALES TAX INCREMENT

TX § 311.0123Title 3. LOCAL TAXATION · Part B. SPECIAL PROPERTY TAX PROVISIONS · Ch. 311. TAX INCREMENT FINANCING ACT

Statute text

(a)In this section, "sales tax base" for a reinvestment zone means the amount of municipal sales and use taxes attributable to the zone for the year in which the zone was designated under this chapter.

(b)The governing body of a municipality may determine, in an ordinance designating an area as a reinvestment zone or in an ordinance adopted subsequent to the designation of a zone, the portion or amount of tax increment generated from municipal sales and use taxes attributable to the zone, above the sales tax base, to be deposited into the tax increment fund. Nothing in this section requires a municipality to contribute sales tax increment into a tax increment fund.

(c)Before the issuance of a bond, note, or other obligation under this chapter that pledges the payments into the tax increment fund under Subsection (b), the governing body of a municipality 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 may be entitled the amount of the payment into the tax increment fund under Subsection (b);

(2)deposit that amount into the tax increment fund; and

(3)continue withholding and making additional payments into the tax increment fund until an amount sufficient to satisfy the amount due has been met.

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Legislative history

Acts 2007, 80th Leg., R.S., Ch. 189 (S.B. 1264), Sec. 1, eff. May 23, 2007.