HBA-CMT H.B. 2123 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2123
By: Tillery
Transportation
3/22/2001
Introduced



BACKGROUND AND PURPOSE 

When the cities of Dallas and Fort Worth announced the creation of
Dallas/Forth Worth International Airport, smaller municipalities began
annexing airport property.  Dallas and Fort Worth invested millions of
dollars building the airport project, and all the surrounding communities
benefit economically from its presence.  Since the opening of the airport,
it has been subject to the sales taxes, property taxes, and hotel taxes of
the municipalities in which it is located, yet the airport is responsible
for providing its own municipal services.  House Bill 2123 requires
non-constituent municipalities to reimburse an airport for the expenses it
incurs in providing municipal services that would normally be provided by a
municipality collecting tax revenue. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 2123 amends the Transportation Code to provide that if one or
more county or municipal airport passenger terminal buildings owned jointly
by populous home-rule municipalities that are constituent agencies are
located within the boundaries of a municipality that is not a constituent
agency, the municipality that is not a constituent agency is required to
reimburse the airport for expenses incurred by the airport in providing one
or more specified municipal services.   

The bill authorizes the governing body to require the municipality that is
not a constituent agency to reimburse the airport or the constituent
agencies for the expenses incurred by the airport in an amount equal to the
lesser of either the total cost to the airport of providing one or more of
the municipal services provided within the corporate boundaries of the
municipality that is not a constituent agency, or the sum of the amounts
collected, credited to, or received by a municipality in any calendar year
that are generated from that part of the municipality lying within the
geographic boundaries of an airport subject to the authority of a joint
board from: 

_the annual maintenance and operation portion of the ad valorem tax levy on
real and personal property, excluding the portion necessary for general
obligation debt service of the municipality; 

_sales and use taxes, excluding sales and use tax levies dedicated for
specific purposes authorized by law; 

_utility franchise taxes;

_municipal court revenues;

_mixed beverage taxes;
 _ hotel occupancy taxes; and 

_all other general revenue tax levies.

The bill requires reimbursements under the provisions of the bill to be
paid yearly by March 31 of the calendar year following the calendar year in
which the expenses were incurred.  The provisions of the bill apply only to
a municipality that has not entered into a revenue sharing agreement with
an airport's joint board and constituent agencies. 

EFFECTIVE DATE

January 1, 2002.