CHAPTER 453. MUNICIPAL TRANSIT DEPARTMENTS
TRANSPORTATION CODE
TITLE 6. ROADWAYS
SUBTITLE K. MASS TRANSPORTATION
CHAPTER 453. MUNICIPAL TRANSIT DEPARTMENTS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 453.001. DEFINITIONS. In this chapter:
(1) "Board" means the governing body of a transit department.
(2) "Mass transit" means the transportation of passengers and
hand-carried packages or baggage of a passenger by any means of
surface, overhead, or underground transportation, other than an
aircraft or taxicab.
(3) "Transit department" means a mass transit department created
under this chapter or under former Article 1118z, Revised
Statutes, enacted by Section 34, Article 1, Chapter 10, Acts of
the 69th Legislature, 3rd Called Session, 1986.
(4) "Transit department system" means:
(A) property owned or held by a municipality and used by a
transit department for mass transit purposes; and
(B) facilities necessary or convenient for:
(i) the use of or access to mass transit by persons or vehicles;
or
(ii) the protection or environmental enhancement of mass
transit.
(5) "Transportation disadvantaged" has the meaning assigned by
Section 451.001.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Amended by Acts 2001, 77th Leg., ch. 1038, Sec. 7, eff. Sept. 1,
2001.
Sec. 453.002. EXCLUDED MUNICIPALITIES. (a) This chapter does
not apply to a municipality any part of which is located in:
(1) a county that contains territory within the corporate limits
of a principal municipality that is a part of an authority
operating under Chapter 451 or 452; or
(2) a federal metropolitan statistical area or primary
metropolitan statistical area that contains a principal
municipality that is a part of an authority operating under
Chapter 451 or 452.
(b) For the purpose of this section "principal municipality" has
the meaning assigned by Section 451.001 or 452.001.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 453.003. CONTINUING APPLICATION OF CHAPTER. The
continuation of a transit department created in compliance with,
and for which a tax has been approved under, this chapter is not
affected by a later failure of the municipality that created the
transit department to meet a requirement of Section 453.002(a) or
453.051(a)(2).
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
SUBCHAPTER B. CREATION AND ADMINISTRATION OF TRANSIT DEPARTMENT
Sec. 453.051. CREATION OF TRANSIT DEPARTMENT. (a) The
governing body of a municipality, by ordinance or resolution, may
create a transit department if:
(1) the municipality operates a mass transportation system;
(2) the municipality has a population of 50,000 or more; and
(3) the governing body determines that the creation of a transit
department and operation of a transit department system would be
in the public interest and of benefit to persons residing in the
municipality.
(b) The jurisdiction of a transit department is coextensive with
the territory of the municipality that creates the transit
department.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Amended by Acts 1997, 75th Leg., ch. 165, Sec. 30.31(a), eff.
Sept. 1, 1997.
Sec. 453.052. ADMINISTRATION OF TRANSIT DEPARTMENT. The board
of a transit department shall administer and operate the transit
department.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 453.053. BOARD. (a) The board of a transit department
consists of the members of the governing body of the municipality
that creates the transit department.
(b) Service as a member of the board is an additional duty of
the office of a member of the governing body and is without
compensation.
(c) The presiding officers of the governing body of the
municipality that creates a transit department are the presiding
officers of the board.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 453.054. BOARD MEETINGS. (a) The board shall hold at
least one regular meeting each month for the purpose of
transacting business of the transit department.
(b) The presiding officer may call a special meeting of the
board.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 453.055. CONFLICTS OF INTEREST: TRANSIT DEPARTMENT
EMPLOYEES. An employee of a transit department may not have a
pecuniary interest in, or receive a benefit from, an agreement to
which the transit department is a party.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 453.056. TRANSFER OF MUNICIPAL RESOURCES TO TRANSIT
DEPARTMENT. (a) The governing body of a municipality may
transfer to a transit department created by the municipality:
(1) property and employees of a division of the municipality
that before the creation of the transit department was
responsible for municipal public transportation; and
(2) municipal funds that may be used for mass transit.
(b) The governing body may abolish or change the functions of
the municipal division formerly responsible for municipal public
transportation.
(c) If a transit department is required to be dissolved under
this chapter, the board, on dissolution of the transit
department, shall transfer to the municipality the funds,
property, and employees that were transferred to the transit
department under this section. The governing body of the
municipality may then recreate or change the duties of any
municipal division abolished or changed as a result of transfers
made under this section.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 453.057. INVESTMENTS. (a) A board may invest transit
department funds in any obligation, security, or evidence of
indebtedness in which the municipality for which the transit
department was created may invest municipal funds.
(b) In making an investment of transit department funds, a board
shall exercise the judgment and care, under the circumstances
prevailing at the time of making the investment, that persons of
ordinary prudence, discretion, and intelligence exercise in the
management of their own affairs in making a permanent and
nonspeculative disposition of their funds, considering the
probable income from the disposition and the probable safety of
their capital.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 453.058. ACCOUNTS AND DEPOSIT OF MONEY; DEDICATION OF
MONEY. (a) The board shall deposit all transit department
money, other than money invested as provided by Section 453.057,
with the treasurer of the creating municipality to the credit of
the accounts described by Subsection (b).
(b) All money received from the collection of the sales and use
tax under Subchapter H shall be credited to an account separate
from an account to which all other money governed by Subsection
(a) shall be credited.
(c) Sales and use tax collections under Subchapter H may be used
only for mass transit.
(d) The board may transfer money credited to the account that
does not contain sales and use tax collections back to the
municipality.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 453.059. LIABILITY OF CREATING MUNICIPALITY. A
municipality that creates a transit department is liable for an
expense the transit department incurs before the date a sales and
use tax is approved for the transit department under Subchapter
D, including the costs of holding the election.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 453.060. PROHIBITION OF CONSUMPTION OF ALCOHOLIC BEVERAGE.
(a) A board by resolution may prohibit the consumption of an
alcoholic beverage on property a transit department possesses or
controls. The resolution must describe with particularity each
place where consumption of an alcoholic beverage is prohibited.
(b) The transit department shall post a sign in each place where
consumption of an alcoholic beverage is prohibited under this
section. The sign must indicate that a person may not consume an
alcoholic beverage in that place.
(c) A person commits an offense if the person consumes an
alcoholic beverage in a place where the consumption of an
alcoholic beverage is prohibited under this section.
(d) An offense under this section is a Class C misdemeanor.
(e) In this section, "alcoholic beverage" has the meaning
assigned by Section 1.04, Alcoholic Beverage Code.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.32(a), eff. Sept.
1, 1997.
Sec. 453.061. TRANSPORTATION DISADVANTAGED. The board shall
consider the interests of the transportation disadvantaged in
making decisions under this chapter.
Added by Acts 2001, 77th Leg., ch. 1038, Sec. 8, eff. Sept. 1,
2001.
SUBCHAPTER C. POWERS OF TRANSIT DEPARTMENT
Sec. 453.101. POWERS APPLICABLE TO TRANSIT DEPARTMENT HAVING
TAX. Except for the administration of assets transferred under
Section 453.056, this subchapter applies only to a transit
department that has a local sales and use tax approved under
Subchapter D.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 453.102. ACQUIRING AND DISPOSING OF PROPERTY. (a) A
transit department may acquire, hold, use, sell, lease, or
dispose of property, including licenses, patents, rights, and
other interests, necessary, convenient, or useful for the full
exercise of any of its powers under this chapter.
(b) The transit department may acquire property described in
Subsection (a) in any manner, including by gift or devise.
(c) An acquisition made or other action taken under Subsection
(a) shall be in the name of the municipality that created the
transit department.
(d) A transit department may dispose of, by sale, lease, or
other conveyance:
(1) any property of the transit department not needed for the
efficient operation and maintenance of the transit department
system; and
(2) any surplus property not needed for its requirements or for
the purpose of carrying out its powers under this chapter.
(e) The lease of unneeded property under Subsection (c) must be
consistent with the efficient operation and maintenance of the
transit department system.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 453.103. TRANSIT DEPARTMENT SYSTEM. (a) A transit
department may in the municipality creating the transit
department:
(1) acquire, construct, own, operate, and maintain a transit
department system;
(2) use any public way; and
(3) construct, repair, and maintain a municipal street, as
authorized by the governing body of the municipality.
(b) In the exercise of a power under Subsection (a), a transit
department may relocate or reroute, or alter the construction of,
any public or private property, including:
(1) an alley, road, street, or railroad;
(2) an electric line and facility;
(3) a telegraph and telephone property and facility;
(4) a pipeline and facility; and
(5) a conduit and facility.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 453.104. FARES AND OTHER CHARGES. The board shall, after a
public hearing, impose reasonable and nondiscriminatory fares,
tolls, charges, rents, or other compensation for the use of the
transit department system sufficient to produce revenue, together
with receipts from taxes imposed by the transit department, in an
amount adequate to:
(1) pay all the expenses necessary to operate and maintain the
transit department system;
(2) pay when due the principal of and interest on, and sinking
fund and reserve fund payments agreed to be made with respect to,
all bonds that are issued by the board and payable in whole or
part from the revenue; and
(3) fulfill the terms of any other agreement with the holders of
bonds described by Subdivision (2) or with a person acting on
behalf of the bondholders.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 453.105. AGREEMENT WITH UTILITIES, CARRIERS. A transit
department may agree with a public or private utility,
communication system, common carrier, or transportation system
for:
(1) the joint use of the property of the agreeing entities in
the municipality; or
(2) the establishment of through routes, joint fares, or
transfers of passengers.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 453.106. CONTRACTS; ACQUISITION OF PROPERTY BY AGREEMENT.
(a) A transit department may contract with any person and may
accept a grant or loan from any person.
(b) A transit department may acquire rolling stock or other
property under a contract or trust agreement, including a
conditional sales contract, lease, and equipment trust
certificate.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 453.107. USE AND ACQUISITION OF PROPERTY OF OTHERS. (a) A
transit department may not alter or damage any property of this
state or a political subdivision of this state or owned by a
person rendering public services and may not disrupt services
being provided by others or inconvenience in any other manner an
owner of property, without first having obtained:
(1) the written consent of the owner; or
(2) the right from the governing body of the municipality to
take the action under the municipality's power of eminent domain.
(b) A transit department may agree with an owner of property to
provide for:
(1) a necessary relocation or alteration of property by the
owner or a contractor chosen by the owner; and
(2) the reimbursement by the transit department to the owner of
the costs incurred by the owner in making the relocation or
alteration.
(c) The transit department shall pay the cost of any relocation,
rerouting, or other alteration in the construction made under
this chapter and is liable for any damage to property occurring
because of the change.
(d) The department shall permit a transit department to
construct a separate area adjacent to a highway under the
jurisdiction of the department so that buses may safely board and
discharge passengers without impeding the flow of traffic. The
location, design, and construction standards of an area
constructed under this subsection must be approved by the
department to ensure the safety of the traveling public.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Amended by:
Acts 2005, 79th Leg., Ch.
1281, Sec. 1, eff. June 18, 2005.
Sec. 453.108. ROUTES. A transit department shall determine each
route, including route changes, as the board considers advisable.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 453.109. TORT LIABILITY AND GOVERNMENTAL IMMUNITY. (a) A
transit department is a separate governmental unit for purposes
of Chapter 101, Civil Practice and Remedies Code, and operations
of a transit department are essential governmental functions and
not proprietary functions for all purposes, including the
purposes of that chapter.
(b) This chapter does not create or confer any governmental
immunity or limitation of liability on any entity that is not a
governmental unit, governmental entity or authority, or public
agency or a subdivision of one of those persons. In this
subsection "governmental unit" has the meaning assigned by
Section 101.001, Civil Practice and Remedies Code.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 453.110. TAX EXEMPTION. The assets of a transit department
are exempt from any tax of the state or a state taxing authority.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
SUBCHAPTER D. TRANSIT DEPARTMENT TAX ELECTION
Sec. 453.151. BOARD TO ORDER TAX ELECTION. (a) If the board
determines that implementation of a mass transit plan developed
by the transit department is feasible, the board shall order an
election to approve a local sales and use tax at the rate
determined by the board under Section 453.401 unless the
municipality that created the transit department imposes an
additional sales and use tax under Section 321.101(b), Tax Code.
(b) The board may not order an election under this section to be
held on the same day as an election held by the creating
municipality to approve an additional sales and use tax under
Section 321.101(b), Tax Code.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 453.152. NOTICE OF ELECTION. (a) Notice of the election
must include a description of the nature and rate of the proposed
tax.
(b) The board shall send a copy of the notice to the Texas
Department of Transportation and to the comptroller.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 453.153. BALLOT PROPOSITION. At an election under this
subchapter, the ballots shall be prepared to provide for voting
for or against the proposition: "Levy of a proposed local sales
and use tax at the rate of _____ (insert appropriate rate)
percent."
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 453.154. RESULTS OF ELECTION. (a) If a majority of the
votes received at the election favor the proposition, the board
shall:
(1) record the result in its minutes; and
(2) adopt an order requiring implementation of the mass transit
plan.
(b) If a majority of the votes received at the election do not
favor the proposition, the board shall:
(1) record in its minutes an order declaring the result; and
(2) dissolve the transit department as soon as practicable.
(c) The board shall file a certified copy of an order under this
section with the Texas Department of Transportation, with the
comptroller, and in the deed records of the county.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
SUBCHAPTER E. SPECIAL TRANSPORTATION PROGRAMS
Sec. 453.201. TRANSPORTATION FOR JOBS PROGRAM PARTICIPANTS. (a)
A transit department shall contract with the Texas Department of
Human Services to provide, in accordance with federal law,
transportation services to a person who:
(1) resides in the area served by the transit department;
(2) is receiving financial assistance under Chapter 31, Human
Resources Code; and
(3) is registered in the jobs opportunities and basic skills
training program under Part F, Subchapter IV, Social Security Act
(42 U.S.C. Section 682).
(b) The contract must include provisions to ensure that:
(1) the transit department is required to provide transportation
services only to a location:
(A) to which the person travels in connection with participation
in the jobs opportunities and basic skills training program; and
(B) that the transit department serves under the transit
department's authorized rate structure and existing services;
(2) the transit department is to provide directly to the Texas
Department of Human Services trip vouchers for distribution by
the Texas Department of Human Services to a person who is
eligible under this section to receive transportation services;
(3) the Texas Department of Human Services reimburses the
transit department for allowable costs, at the applicable federal
matching rate; and
(4) the Texas Department of Human Services may return
undistributed trip vouchers to the transit department.
(c) A transit department shall certify the amount of public
funds spent by the transit department under this section for the
purpose of obtaining federal funds under the jobs opportunities
and basic skills training program.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 453.202. WAIVER OF FEDERAL REQUIREMENTS. If, before
implementing Section 453.201, the Texas Department of Human
Services determines that a waiver or authorization from a federal
agency is necessary for implementation, the Texas Department of
Human Services shall request the waiver or authorization, and the
Texas Department of Human Services and a transit department may
delay implementing Section 453.201 until the waiver or
authorization is granted.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
SUBCHAPTER G. BONDS
Sec. 453.301. DEFINITION. In this subchapter, "bond" includes a
note.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 453.302. POWER TO ISSUE BONDS. (a) A transit department
may issue revenue bonds at any time and for any amounts it
considers necessary or appropriate for:
(1) the acquisition, construction, repair, equipping,
improvement, or extension of its transit system; or
(2) the construction or general maintenance of streets of the
creating municipality.
(b) Bonds payable solely from revenues may be issued by
resolution of the board.
(c) Bonds, other than refunding bonds, any portion of which is
payable from tax revenue, may not be issued until authorized by a
majority vote of the voters of the municipality voting in an
election.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 453.303. BOND TERMS. (a) A transit department's bonds are
fully negotiable.
(b) The transit department may make the bonds redeemable before
maturity at the price and subject to the terms and conditions
that are provided in the resolution authorizing the bonds.
(c) A revenue bond indenture may limit a power of the transit
department provided by Sections 453.101-453.108 or 453.109(b) as
long as the bond containing the indenture is outstanding and
unpaid.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 453.304. SALE. Bonds may be sold at a public or private
sale as determined by the board.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 453.305. APPROVAL; REGISTRATION. (a) A transit
department's bonds and the records relating to their issuance
shall be submitted to the attorney general for examination before
the bonds may be delivered.
(b) If the attorney general finds that the bonds have been
issued in conformity with the constitution and this chapter and
that the bonds will be a binding obligation of the issuing
transit department, the attorney general shall approve the bonds.
(c) After the bonds are approved by the attorney general, the
comptroller shall register the bonds.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 453.306. INCONTESTABILITY. Bonds are incontestable after
they are:
(1) approved by the attorney general;
(2) registered by the comptroller; and
(3) sold and delivered to the purchaser.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 453.307. SECURITY PLEDGED. (a) To secure the payment of a
transit department's bonds, the transit department may:
(1) pledge all or part of revenue received from any tax that the
transit department may impose;
(2) pledge all or part of the revenue of the transit department
system; and
(3) mortgage all or part of the transit department system,
including any part of the system subsequently acquired.
(b) Under Subsection (a)(3), the transit department may, subject
to the terms of the bond indenture or resolution authorizing the
issuance of the bonds, encumber a separate item of the transit
department system and acquire, use, hold, or contract for any
property by lease, chattel mortgage, or other conditional sale,
including an equipment trust transaction.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 453.308. PLEDGE OF REVENUE LIMITED. The expenses of
operation and maintenance of a transit department system,
including salaries, labor, materials, and repairs necessary to
provide efficient service and every other proper item of expense,
are a first lien and charge against any revenue of a transit
department that is encumbered under this chapter.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 453.309. REFUNDING BONDS. A transit department may issue
refunding bonds for the purposes and in the manner authorized by
Chapter 1207, Government Code, or other law.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.397, eff. Sept.
1, 2001.
Sec. 453.310. BONDS AS AUTHORIZED INVESTMENTS. (a) A transit
department's bonds are authorized investments for:
(1) a bank;
(2) a trust company;
(3) a savings and loan association; and
(4) an insurance company.
(b) The bonds, when accompanied by all appurtenant, unmatured
coupons and to the extent of the lesser of their face value or
market value, are eligible to secure the deposit of public funds
of this state, a political subdivision of this state, and any
other political corporation of this state.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 453.311. INTEREST EXEMPTION. Interest on bonds issued by a
transit department is exempt from any tax of the state or a state
taxing authority.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
SUBCHAPTER H. TAXES
Sec. 453.401. SALES AND USE TAX. (a) The board may impose for
the transit department a sales and use tax at a permissible rate
that does not exceed the rate approved by the voters at an
election under this chapter.
(b) The board by order may:
(1) decrease the rate of the sales and use tax for the transit
department to a permissible rate; or
(2) call an election for the increase or decrease of the sales
and use tax to a permissible rate.
(c) The permissible rates for a sales and use tax imposed under
this chapter are:
(1) one-quarter of one percent; and
(2) one-half of one percent.
(d) Chapter 322, Tax Code, applies to a transit department's
sales and use tax.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 453.402. MAXIMUM TAX RATE. (a) A board may not adopt a
sales and use tax rate, including a rate increase, that when
combined with the rates of all sales and use taxes imposed by all
political subdivisions of this state having territory in the
municipality exceeds two percent in any location in the
municipality.
(b) An election by a transit department to approve a sales and
use tax or increase the rate of the transit department's sales
and use tax has no effect if:
(1) the voters of the transit department approve the
department's sales and use tax rate or rate increase at an
election held on the same day on which the municipality or county
having territory in the jurisdiction of the transit department
adopts a sales and use tax or an additional sales and use tax;
and
(2) the combined rates of all sales and use taxes imposed by the
transit department and all political subdivisions of this state
would exceed two percent in any part of the territory in the
jurisdiction of the transit department.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 453.403. ELECTION TO CHANGE TAX RATE. (a) At an election
ordered under Section 453.401(b)(2), the ballots shall be
prepared to permit voting for or against the proposition: "The
increase (decrease) of the local sales and use tax rate of (name
of transit department) to (percentage)."
(b) The increase or decrease in the tax rate becomes effective
if it is approved by a majority of the votes cast.
(c) A notice of the election and a certified copy of the order
canvassing the election results shall be:
(1) sent to the Texas Department of Transportation and the
comptroller; and
(2) filed in the deed records of the county.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 453.404. SALES TAX: EFFECTIVE DATES. (a) A transit
department's sales and use tax takes effect on the first day of
the second calendar quarter that begins after the date the
comptroller receives a copy of the order required to be sent
under Section 453.154.
(b) An increase or decrease in the rate of a transit
department's sales and use tax takes effect on:
(1) the first day of the first calendar quarter that begins
after the date the comptroller receives the notice provided under
Section 453.403(c); or
(2) the first day of the second calendar quarter that begins
after the date the comptroller receives the notice if within 10
days after the date of receipt of the notice the comptroller
gives written notice to the presiding officer of the board that
the comptroller requires more time to implement tax collection
and reporting procedures.
(c) The presiding officer of the board of a transit department
that imposes a sales and use tax under this chapter shall send to
the comptroller by United States registered or certified mail a
certified copy of each order of the municipality that created the
transit department that adds territory to, or removes territory
from, the municipality unless notice of the boundary change is
given under Chapter 321, Tax Code. The order must give the
effective date of the change and be accompanied by a map of the
municipality clearly showing the territory added or removed. The
tax is effective in the added territory or is excluded from the
removed territory in the same manner as provided for a change of
tax rate in Subsection (b).
(d) If the notice of a boundary change is given as provided by
Chapter 321, Tax Code, the tax imposed under this chapter takes
effect at the same time that the municipal tax takes effect under
that notice.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
SUBCHAPTER I. DISSOLUTION OF TRANSIT DEPARTMENT
Sec. 453.451. ELECTION TO DISSOLVE TRANSIT DEPARTMENT. (a) A
board may order an election on the question of dissolving the
transit department.
(b) The board shall dissolve the transit department if the
dissolution is approved by a majority of the votes cast.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 453.452. ELECTION PROCEDURES. (a) The provisions of
Subchapter D that relate to the notice and conduct of an election
under that subchapter apply to an election to dissolve a transit
department unless a different requirement is specified in this
subchapter.
(b) The board shall send a notice of the election to the Texas
Department of Transportation and the comptroller.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 453.453. BALLOTS; NOTICE OF ELECTION RESULTS. (a) At the
election, the ballots shall be prepared to provide for voting for
or against the proposition: "Dissolution of (name of transit
department)."
(b) The board shall send a certified copy of the order
canvassing the election results to the Texas Department of
Transportation and the comptroller and file a copy in the deed
records of the county.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 453.454. EFFECTIVE DATE OF DISSOLUTION. The repeal of a
transit department's sales and use tax under this subchapter
takes effect on:
(1) the first day of the first calendar quarter that begins
after the date the comptroller receives the notice of the
dissolution of the transit department; or
(2) the first day of the second calendar quarter that begins
after the date the comptroller receives the notice, if within 10
days after the date of receipt of the notice the comptroller
gives written notice to the presiding officer of the board that
the comptroller requires more time to implement the repeal of the
tax.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.