Tex. Local Gov't Code Section 382.202
Authority to Impose Taxes of Assessments After Partial or Complete Annexation

(a)

After a district has been annexed by a municipality wholly or partly for general purposes, the county may not authorize the district to impose an ad valorem tax, hotel occupancy tax, or sales and use tax, or collect an assessment in the area that the municipality overlaps the district, except as provided by Subsection (b) or Section 382.201 (Liabilities; Assumption of Assets After Complete Annexation by Municipality)(b).

(b)

A district may continue to impose a tax in an area that the municipality annexes for limited purposes and in which the municipality does not impose taxes. If the municipality annexes an area for limited purposes and imposes some of the taxes which the district is imposing but not all of them, the district may continue to impose taxes only to the extent that the level of taxation of the municipality and the district combined, calculating the hotel tax, the sales tax, and the ad valorem tax independently, is equal to or less than the tax level of the municipality as to fully annexed areas.

(c)

The legislature intends that the level of taxation of areas where the district and the municipality overlap do not exceed the level of taxation of fully annexed areas.
Transferred from Local Government Code, Subchapter C, Chapter 372 and amended by Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969), Sec. 15.009, eff. September 1, 2009.

Source: Section 382.202 — Authority to Impose Taxes of Assessments After Partial or Complete Annexation, https://statutes.­capitol.­texas.­gov/Docs/LG/htm/LG.­382.­htm#382.­202 (accessed May 26, 2025).

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May 26, 2025

§ 382.202. Auth. to Impose Taxes of Assessments After Partial or Complete Annexation's source at texas​.gov