HB 735 Summary

• Amends section 163.31801 to authorize counties, municipalities, school districts, and special districts to use existing impact fees to construct new capital facilities or improve, alter, or replace existing capital facilities to meet service level requirements.

• Creates section 201.032 to allow counties, municipalities, and school districts to impose a discretionary surcharge on documents taxable under the documentary stamp tax (section 201.02) as an alternative to impact fees, with a maximum combined rate of $1 per $100 of property transfer consideration.

• Requires surcharge ordinances to be proposed at a regular meeting at least 2 weeks before adoption, take effect only on January 1, terminate only on December 31, and be approved by majority vote; counties must notify the Department of Revenue within 10 days of adoption and no later than September 1 before the effective date.

• Authorizes surcharge revenues to fund utilities, water and sewer systems, transportation facilities, parks and recreational facilities, libraries, health systems, and educational facilities; requires revenues to be deposited into separate trust funds and reported annually in financial statements.

• Prohibits local governments and school districts from imposing both a surcharge and an impact fee for the same purpose while the surcharge is in effect; effective date is July 1, 2016.