Tex.
Health & Safety Code Section 775.055
Administration of Property, Debts, and Assets After Dissolution
(a)
After a vote to dissolve a district, the board shall continue to control and administer the property, debts, and assets of the district until all funds are disposed of and all district debts are paid or settled.(b)
The board may not dispose of the district’s assets except for due compensation unless the debts are transferred to another governmental entity or agency within or embracing the district and the transfer will benefit the district’s residents.(c)
After the board issues the dissolution order, the board shall:(1)
determine the debt owed by the district; and(2)
impose on the property included in the district’s tax rolls a tax that is in proportion of the debt to the property value.(d)
Each taxpayer may pay the tax imposed by the district under this section at once.(e)
The board may institute a suit to enforce payment of taxes and to foreclose liens to secure the payment of taxes due the district.(f)
When all outstanding debts and obligations of the district are paid, the board shall order the secretary to return the pro rata share of all unused tax money to each district taxpayer. A taxpayer may request that the taxpayer’s share of surplus tax money be credited to the taxpayer’s county taxes. If a taxpayer requests the credit, the board shall direct the secretary to transmit the funds to the county tax assessor-collector.(g)
After the district pays all its debts and disposes of all its assets and funds as prescribed by this section, the board shall file a written report with the commissioners court of each county in which the district is located setting forth a summary of the board’s actions in dissolving the district. Not later than the 10th day after the date it receives the report and determines that the requirements of this section have been fulfilled, the commissioners court of each county shall enter an order dissolving the district.(h)
Each emergency services commissioner is discharged from liability under the emergency services commissioner’s bond on entry of the order prescribed by Subsection (g).
Source:
Section 775.055 — Administration of Property, Debts, and Assets After Dissolution, https://statutes.capitol.texas.gov/Docs/HS/htm/HS.775.htm#775.055 (accessed Jun. 5, 2024).
