03-04-04 La Porte Development Corporation Minutes

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Economic Development Sales W (96-302) Page 7 of8 the election results in meeting minutes not earlier than the third day, nor later than the sixth day, following the election. The city secretary must send the certified copy of the resolution or ordinance with the election results to the Revenue Accounting, Tax Allocation Section of the Comptroller's office. The information sent to the Comptroller must include: . the date the election was held; . the proposition voted on; . number of votes cast for adoption; . number of votes cast against adoption; . number of votes by which the proposition was approved; and . a statement that the proposition did pass. The law states that the Comptroller's office must receive this information from the city secretary through U.S. certified or registered mail. The Comptroller's office will later notify the city secretary when it is ready to handle the administration of the tax. Effective Date The tax becomes effective after one complete calendar quarter elapses from the date the Comptroller's office receives notification of voter approval. For example, if voters approve the tax in February 2004, and the Comptroller's office receives notification in March, then the tax becomes effective on July 1,2004, after the calendar quarter of April-May-June has elapsed. The Comptroller's office will notify area merchants to begin collecting the new tax rate on July 1. The city will then begin receiving revenue from the tax in September 2004. Propositions and Effective Dates for a ~4A Tax or ~4B Tax With a Tax to Reduce the Property Tax Rate If a city wants to adopt the S4A sales tax and a sales tax to reduce the property tax rate in the same election, the city may address them in a single ballot proposition. If the proposition passes, the sales tax to reduce the property tax rate must take effect on October 1 after one complete calendar quarter has elapsed. The S4A tax would start at the beginning of the first calendar quarter after the completion of one full calendar quarter. If a city wants to adopt a sales tax under S4B and a sales tax to reduce the property tax rate in the same election, the city must address them as two separate ballot propositions. If voters approve both of these propositions, they both become effective on October 1. Method of Payment The Comptroller's office will issue a payment for the total city tax and a letter with the first payment (that includes the economic development sales tax) with instructions explaining how to calculate the portion due the city and what is due the development corporation. After a city receives the sales and use tax revenues from the Comptroller's office, the city must deliver the revenue to the development corporation. Need more information on the economic development sales tax? Comptroller representatives can provide presentations on matters related to the local sales http://www.window.state.tx.us/taxinfo/taxpubs/tx96 _302 .html 8/17/2004