Texas Local Government Code Title 12, Chapter 504 - Type A Corporations

SUBCHAPTER A GENERAL PROVISIONS

• Texas Section 504.001 - Definition
  In this chapter, "authorizing municipality" means the municipality that authorizes the creation of a Type A corporation. Added by Acts 2007, 80th Leg., R.S., Ch....
• Texas Section 504.002 - Applicability Of Chapter
  This chapter applies only to a municipality that: (1) is located in a county that has a population of 500,000 or less; or (2) has...
• Texas Section 504.003 - Authority To Create Corporation
  (a) A municipality may authorize the creation under this subtitle of a Type A corporation. (b) A municipality may not authorize the creation of more...
• Texas Section 504.004 - Contents Of Certificate Of Formation
  The certificate of formation of a Type A corporation must state that the corporation is governed by this chapter. Added by Acts 2007, 80th Leg.,...

SUBCHAPTER B GOVERNANCE OF CORPORATION

• Texas Section 504.005 - Corporation Not Subject To Certain Provisions
  Sections 501.203, 501.205, 501.251-501.254, 501.255(a) and (b), 501.256, and 501.257 do not apply to a corporation under this chapter. Added by Acts 2007, 80th Leg.,...
• Texas Section 504.051 - Board Of Directors
  (a) The board of directors of a Type A corporation consists of at least five directors. (b) A director is appointed by the governing body...
• Texas Section 504.052 - Officers
  The board of directors of a Type A corporation shall appoint: (1) a president; (2) a secretary; and (3) other officers of the corporation that...
• Texas Section 504.053 - Quorum
  A majority of the entire membership of the board of directors of a Type A corporation is a quorum. Added by Acts 2007, 80th Leg.,...
• Texas Section 504.054 - Location Of Board Meetings
  (a) Except as provided by Subsection (b), the board of directors of a Type A corporation shall conduct each board meeting within the boundaries of...

SUBCHAPTER C GENERAL POWERS AND DUTIES

• Texas Section 504.055 - Restrictions On Registered Agent And Office
  (a) The registered agent of a Type A corporation must be an individual who is a resident of this state. (b) The registered office of...
• Texas Section 504.101 - Applicability Of Other Law; Conflicts
  A Type A corporation has the powers and is subject to the limitations of a corporation created under another provision of this subtitle outside of...
• Texas Section 504.102 - Contract With Other Private Corporation
  A Type A corporation may contract with another private corporation to: (1) carry out an industrial development program or objective; or (2) assist with the...
• Texas Section 504.103 - Limitation On Primary Purpose Of Project; Exceptions
  (a) Except as otherwise provided by this section, a Type A corporation may not undertake a project the primary purpose of which is to provide:...
• Texas Section 504.104 - Assumption Or Payment Of Preexisting Debt Prohibited
  A Type A corporation may not: (1) assume a debt that existed before the date the authorizing municipality authorized the creation of the corporation; or...
• Texas Section 504.105 - Limitation On Use Of Revenues For Promotional Purpose
  (a) Except as provided by Subsection (b), a Type A corporation may spend not more than 10 percent of the corporate revenues for promotional purposes....
• Texas Section 504.106 - Eminent Domain
  A Type A corporation may not exercise the power of eminent domain except by action of the governing body of the authorizing municipality. Added by...

SUBCHAPTER D AUTHORIZATION FOR ADDITIONAL PROJECTS

• Texas Section 504.107 - Liability
  (a) The following are not liable for damages arising from the performance of a governmental function of a Type A corporation or the authorizing municipality:...
• Texas Section 504.151 - Definitions
  In this subchapter: (1) "Related infrastructure" has the meaning assigned by Section 334.001. (2) "Sports venue" means an arena, coliseum, stadium, or other type of...
• Texas Section 504.152 - Election To Authorize Projects Applicable To Type B Corporations
  (a) An authorizing municipality may submit to the voters of the municipality a ballot proposition that authorizes the Type A corporation to use the sales...
• Texas Section 504.153 - Public Hearing Preceding Election
  Before an election may be held under Section 504.152, a public hearing must be held in the authorizing municipality to inform the municipality's residents of...
• Texas Section 504.154 - Limitation On Subsequent Election
  If a majority of the voters voting on the issue do not approve a specific project or a specific category of projects at an election...
• Texas Section 504.155 - Subsequent Approval Of Additional Projects
  Prior approval of a specific project at an election or completion of a specific project approved at an election does not prevent an authorizing municipality...
• Texas Section 504.156 - Applicability Of Chapter To Additional Project
  A project undertaken under this subchapter is governed by this chapter, including the provisions of this chapter relating to the authorization and expiration of a...

SUBCHAPTER E INVESTMENT AGREEMENTS

• Texas Section 504.171 - Authority Of Certain Corporations To Undertake Type B Projects
  (a) This section applies only to a Type A corporation the creation of which was authorized by a municipality: (1) that has also authorized the...
• Texas Section 504.201 - Definitions
  In this subchapter: (1) "Base taxable value" means the taxable value of property located in the defined area of a project as of January 1...
• Texas Section 504.202 - Agreement To Invest In Extraterritorial Project
  (a) A taxing unit may enter into an agreement with a Type A corporation to invest in a project that is undertaken by the corporation...
• Texas Section 504.203 - Required Agreement With Corresponding Taxing Unit
  A Type A corporation that enters into an agreement under Section 504.202 shall enter into an agreement with a corresponding taxing unit to recover the...

SUBCHAPTER F SALES AND USE TAX

• Texas Section 504.204 - Effect On Authority Under Other Law
  (a) This subchapter does not affect a taxing unit's authority to grant a tax abatement. (b) This subchapter does not affect a Type A corporation's...
• Texas Section 504.251 - Tax Authorized
  The authorizing municipality may adopt a sales and use tax for the benefit of a Type A corporation if the tax is approved by a...
• Texas Section 504.252 - Sales Tax
  (a) If the authorizing municipality adopts the tax under Section 504.251, a tax is imposed on the receipts from the sale at retail of taxable...
• Texas Section 504.253 - Use Tax
  (a) If the authorizing municipality adopts the tax under Section 504.251, an excise tax is imposed on the use, storage, or other consumption within the...
• Texas Section 504.254 - Combined Tax Rate
  (a) An authorizing municipality may not adopt a rate under this chapter that, when added to the rates of all other sales and use taxes...
• Texas Section 504.255 - Applicability Of Tax Code
  (a) Chapter 321, Tax Code, governs an election to approve the adoption of the sales and use tax under this chapter and governs the imposition,...
• Texas Section 504.256 - Ballot
  In an election to adopt the sales and use tax under this chapter, the ballot shall be printed to provide for voting for or against...
• Texas Section 504.257 - Limitation On Duration Of Tax
  (a) At an election held under Section 504.251 or 504.258, the authorizing municipality may also allow the voters to vote on a ballot proposition to...
• Texas Section 504.258 - Election To Reduce Or Increase Tax Rate
  (a) An authorizing municipality that has imposed a sales and use tax under this chapter may, in the same manner and by the same procedure...
• Texas Section 504.259 - Reduction Of Tax Within Regional Transportation Authority
  Notwithstanding any other provision of this chapter, a tax under this chapter imposed by an authorizing municipality that is located within the territorial limits of...
• Texas Section 504.260 - Limited Sales And Use Tax For Specific Project
  (a) At an election held under Section 504.251 or 504.258, the authorizing municipality may also allow the voters to vote on a ballot proposition to...
• Texas Section 504.261 - Concurrent Election With Election Under Tax Code
  (a) At an election to adopt, reduce, increase, or abolish the sales and use tax under this chapter, the authorizing municipality may also allow voters...

SUBCHAPTER G USE OF TAX PROCEEDS

• Texas Section 504.262 - Procedures On Expiration Of Tax
  (a) Before the 60th day before the date that a sales and use tax imposed under this chapter is to expire, the governing body of...
• Texas Section 504.301 - Delivery And General Use Of Tax Proceeds
  On the authorizing municipality's receipt from the comptroller of the proceeds of the sales and use tax imposed under this chapter, the authorizing municipality shall...
• Texas Section 504.302 - Payment Of Maintenance And Operating Costs; Election
  (a) The costs of a publicly owned and operated project purchased or constructed under this chapter include the maintenance and operating costs of the project....
• Texas Section 504.303 - Payment Of Bonds
  The proceeds of the sales and use tax imposed under this chapter may be used to pay the principal of, interest on, and other costs...
• Texas Section 504.304 - Payment For Cleanup Of Contaminated Property; Election
  (a) The economic development office, with the assistance of the Texas Commission on Environmental Quality, may encourage a Type A corporation to use proceeds from...

SUBCHAPTER H TERMINATION OF CORPORATION

• Texas Section 504.305 - Payment For Job Training
  The proceeds of the sales and use tax imposed under this chapter may also be used to pay expenses relating to job training incurred by...
• Texas Section 504.351 - Election To Terminate Existence Of Corporation On Petition
  (a) On petition of 10 percent or more of the registered voters of an authorizing municipality requesting an election on the termination of the existence...
• Texas Section 504.352 - Ballot
  The ballot for an election held under Section 504.351 shall be printed to provide for voting for or against the proposition: "Termination of the __________...
• Texas Section 504.353 - Termination Of Existence Of Corporation
  (a) If a majority of voters voting on the issue at an election held under Section 504.351 approve the termination, the Type A corporation shall:...

Last modified: September 28, 2016