HomeMy WebLinkAboutResolution No. 03-07 CITY OF THE COLONY, TEXAS
RESOLUTION NO. ~) 3- O '7
A RESOLUTION OF THE CITY COUNCIL OETHE CITY OF
THE COLONY REQUESTING CONSIDERATION BY THE
TEXAS LEGISLATURE OF CERTAIN POINTS WITH
REGARD TO THE PROPOSED AMENDMENTS TO THE
DEVELOPMENT CORPORATION ACT (THE "ACT")
WHEREAS, there has been consideration given to possible amendments to the Development
Corporation Act (thc "Act"), some of which, if enacted into law, could have a devastating effect on
the local economy in many Texas cities; and
WHEREAS, the City Council of thc City of The Colony is seriously concerned about this
matter; and
WHEREAS, this Council supports the right of cities to determine the use of their 4A/4B sales
tax revenue as long as that use builds their economy and is not for general fund purposes; and
WHEREAS, thc City of The Colony, along with many other Texas cities, should have the right
under the Act to build its commercial tax base on corporate office and retail development; and
WHEREAS, this City does not have land that can be utilized for manufacturing or industrial
purposes; and
WHEREAS, this City cannot compete with larger cities for corporate office and retail
development without utilizing sales tax as a major component in our incentive program; and
WHEREAS, thc definition of the term Project in the 2002 Attorney General's handbook "appears
to authorize" the use of 4A tax proceeds to promote "certain commercial and retail business development"
and we believe that term should be more clearly defined using Standard Industrial Classification (SIC)
codes to define qualified industries; and
WHEREAS, this Council believes that Texas cities should be allowed to utilize their 4A/4B funds
to recruit companies already located in the state if that company has expressed an interest in relocating
from its city of residence; and
WHEREAS, the voters believe that the sales tax was approved to improve their local economy
and this Council would not support an amendment that 4A/4B sales tax can ONLY be used to recruit a
company located outside the State of Texas; and
WHEREAS, this council does not support eliminating the 4A/4B sales tax, nor do we support an
amendment that would channel 4A and 4B revenue into a city's general fund.
WHEREAS, this Council does not support amending the Act so that 4A and 4B sales tax can be
used ONLY for the recruitment of manufacturing and/or industrial companies.
Sales Tax Issues 1
NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF THE COLONY, TEXAS:
Section 1. That the City Council of the City o£the Colony, Texas
hereby requests the members of the Texas Legislature to consider
the points included herein when proposing amendments to the
Development Corporation Act (The "Act")
Section 2. This recommendation shall be communicated to all members of the Texas
Legislative Delegation and other appointed and elected officials for consideration.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF THE
COLONY, TEXAS, TO BE EFFECTIVE this 17th day of March 2003.
Bemetta l-lenville-Shannon, Mayor
Patti A. Hicks, TRMC
City Secretary
APPROVED AS TO FORM:
Sales Tax Issues 2