Tex. Tax Code Section 321.510
Reallocation of Municipal or Local Governmental Entity Tax Revenue


(a)

In this section, “local governmental entity” includes any governmental entity created by the legislature that has a limited purpose or function, that has a defined or restricted geographic territory, and that is authorized by law to impose a local sales and use tax the imposition, computation, administration, enforcement, and collection of which is governed by this chapter.

(b)

This section applies only if:

(1)

the comptroller:

(A)

reallocates local tax revenue from a municipality or local governmental entity to another municipality or local governmental entity; or

(B)

refunds local tax revenue that was previously allocated to a municipality or local governmental entity; and

(2)

the amount the comptroller reallocates or refunds is at least equal to the lesser of:

(A)

$200,000;

(B)

an amount equal to 10 percent of the revenue received by the municipality or local governmental entity under this chapter during the calendar year preceding the calendar year in which the reallocation or refund is made; or

(C)

an amount that increases or decreases the amount of revenue the municipality or local governmental entity receives under this chapter during a calendar month by more than 15 percent as compared to revenue received by the municipality or local governmental entity during the same month in any previous year.

(c)

Subject to the criteria provided by this section, a municipality or local governmental entity may request a review of all available sales tax returns and reports in the comptroller’s possession filed by not more than five individual taxpayers doing business in the municipality or local governmental entity that are included and identified by the municipality or local governmental entity from the information received from the comptroller under Section 321.3022 (Tax Information) and that relate to a reallocation or refund in an amount described by Subsection (b).

(d)

The comptroller shall provide the returns and reports requested under Subsection (c) for review regardless of whether the information in the returns or reports is confidential under state law, including Sections 111.006 (Confidentiality of Information) and 151.027 (Confidentiality of Tax Information).

(e)

The provision of confidential information to a municipality or local governmental entity under this section does not affect the confidential nature of the information in the returns or reports. A municipality or local governmental entity shall use the information only in a manner that maintains the confidential nature of the information and may not disclose or release the information to the public.

(f)

A municipality or local governmental entity must submit the request under Subsection (c) not later than the 90th day after the date the municipality or local governmental entity discovers a reallocation or refund described by Subsection (b).

(g)

Not earlier than the 30th day or later than the 90th day after the date the comptroller receives a request under Subsection (c), the comptroller shall provide the requested returns and reports to the requesting municipality or local governmental entity for review.

(h)

The comptroller may set and collect from a municipality or local governmental entity a reasonable fee to cover the expense of compiling and providing information under this section.
Added by Acts 2011, 82nd Leg., R.S., Ch. 942 (H.B. 590), Sec. 2, eff. September 1, 2011.

Source: Section 321.510 — Reallocation of Municipal or Local Governmental Entity Tax Revenue, https://statutes.­capitol.­texas.­gov/Docs/TX/htm/TX.­321.­htm#321.­510 (accessed Jun. 5, 2024).

321.001
Short Title
321.002
Definitions
321.003
Other Portions of Tax Applicable
321.004
References to Sales or Use Tax
321.101
Tax Authorized
321.102
Effective Dates: New Tax, Tax Repeal, Boundary Change
321.103
Sales Tax
321.104
Use Tax
321.105
Residential Use of Gas and Electricity
321.106
Fire Control District Tax
321.107
Administration of Local Sales and Use Taxes Imposed by Other Governmental Entities
321.108
Municipal Crime Control and Prevention District Tax
321.201
Computation of Sales Taxes
321.202
Method of Reporting: Retailers Having Sales Below Taxable Amount
321.203
Consummation of Sale
321.204
Computation of Use Tax
321.205
Use Tax: Municipality in Which Use Occurs
321.206
Incidence of Additional Municipal Sales and Use Tax
321.207
Local Tax Inapplicable When No State Tax
321.208
State Exemptions Applicable
321.209
Transition Exemption: General Purpose Sales and Use Tax
321.210
Telecommunications Exemption
321.301
Comptroller to Collect and Administer Taxes
321.302
Comptroller’s Reporting Duties
321.303
Sales Tax Permits and Exemption and Resale Certificates
321.304
Discounts for Prepayment and Tax Collection
321.305
Penalties
321.306
Comptroller’s Rules
321.307
Delinquent Taxes: Limitations
321.308
Seizure and Sale of Property
321.309
Suit for Tax Collection
321.310
Disapproval of Municipal Suit
321.311
Judgments in Municipal Suit
321.312
Retention of Certain Municipal Sales Taxes
321.401
Calling of Election
321.402
Deadlines After Petition
321.403
Time of Election
321.404
Ballot Wording
321.405
Official Results of Election
321.406
Frequency of Election
321.407
Election Contest: Notice
321.408
Election Contest: Delayed Effective Date
321.409
Combined Municipal Sales Tax Ballot Propositions
321.501
Trust Account
321.502
Distribution of Trust Funds
321.503
State’s Share
321.504
Amounts Retained in Trust Account
321.505
Interest on Trust Account
321.506
Use of Tax Revenue by Municipality
321.507
Use of Additional Municipal Sales and Use Tax
321.508
Pledge of Tax Revenue
321.509
Tax Powers of Municipality Not Limited
321.510
Reallocation of Municipal or Local Governmental Entity Tax Revenue
321.1025
Annexation to Certain Regional Transportation Authorities
321.1045
Imposition of Sales and Use Tax in Certain Federal Military Installations
321.1055
Imposition of Fire Control or Crime Control District Tax on the Residential Use of Gas and Electricity
321.2091
Transition Exemption: Additional Municipal Sales and Use Tax
321.3022
Tax Information
321.3025
Disposition of Amount Erroneously Collected
321.5025
Distribution of Trust Funds to Defunding Municipality

Accessed:
Jun. 5, 2024

§ 321.510’s source at texas​.gov