If a district’s resolution would lower a transit authority’s tax rate, the district must send the resolution to the authority before calling the election, and the authority must analyze the impact and notify the district within 30 days.
Sec. 335.0535. TRANSPORTATION AUTHORITY IMPACT ANALYSIS. (a) If the resolution contains a proposed sales and use tax under Subchapter D, Chapter 334, and imposition of the tax would result in the reduction of the tax rate of a rapid transit authority created under Chapter 451, Transportation Code, or a regional transportation authority created under Chapter 452, Transportation Code, the district shall send a copy of the resolution to the authority before calling an election on the resolution under Section 335.054. (b) Before the 30th day after the date the rapid transit authority receives the copy of the resolution, the authority shall: (1) perform an analysis to determine if implementation of the proposed sales and use tax and the resulting reduction in the authority's tax rate will: (A) have a significant negative impact on the authority's ability to provide services; or (B) impair any existing contracts; and (2) provide to the district written notice of the results of the analysis. (c) If the rapid transit authority determines that implementation of the resolution will have a significant negative impact on the authority's ability to provide services or will impair any existing contracts, the written analysis required under Subsection (b)(2) must include information on how to change the resolution so that implementation will not have a significant negative impact on the authority's ability to provide service or will not impair any existing contracts. (d) If the rapid transit authority does not complete the analysis and provide the notice before the 30th day after the date the authority receives the copy of the resolution, the authority is considered to have determined that implementation of the resolution will not have a significant negative impact on the authority's ability to provide services and will not impair any existing contracts. Added by Acts 1997, 75th Leg., ch. 551, Sec. 1, eff. Sept. 1, 1997.