Tex. Spec. Dist. Local Laws Code Section 3896.160
Taxes for Bonds and Other Obligations

(a)

At the time bonds or other obligations payable wholly or partly from ad valorem taxes are issued:

(1)

the board shall impose a continuing direct annual ad valorem tax, without limit as to rate or amount, for each year that all or part of the bonds are outstanding; and

(2)

the district annually shall impose an ad valorem tax on all taxable property in the district in an amount sufficient to:

(A)

pay the interest on the bonds or other obligations as the interest becomes due;

(B)

create a sinking fund for the payment of the principal of the bonds or other obligations when due or the redemption price at any earlier required redemption date; and

(C)

pay the expenses of imposing the taxes.

(b)

Bonds or other obligations that are secured by and payable from ad valorem taxes may not be issued unless the bonds and the imposition of the taxes are approved by:

(1)

a majority of the district voters voting at an election held for that purpose; and

(2)

the governing body of the city.

(c)

The district shall hold an election required by this section in the manner provided by Chapter 54 (Municipal Utility Districts), Water Code.
Added by Acts 2011, 82nd Leg., R.S., Ch. 699 (H.B. 427), Sec. 1, eff. June 17, 2011.

Source: Section 3896.160 — Taxes for Bonds and Other Obligations, https://statutes.­capitol.­texas.­gov/Docs/SD/htm/SD.­3896.­htm#3896.­160 (accessed Jun. 5, 2024).

3896.001
Definitions 3896.002
Creation and Nature of District 3896.003
Purpose 3896.004
Findings of Benefit and Public Purpose 3896.005
District Territory 3896.006
Eligibility for Reinvestment or Enterprise Zones 3896.007
Applicability of Municipal Management Districts Law 3896.008
Liberal Construction of Chapter 3896.051
Board of Directors 3896.052
Appointment of Directors 3896.053
Nonvoting Directors 3896.054
Conflicts of Interest 3896.055
Director’s Oath or Affirmation 3896.056
Officers 3896.057
Compensation of Directors 3896.059
Quorum 3896.101
General Powers and Duties 3896.102
Improvement Projects 3896.103
General Powers Regarding Contracts 3896.104
Competitive Bidding 3896.105
Economic Development 3896.106
Rules 3896.107
Name Change 3896.108
Adding or Removing Territory 3896.109
No Eminent Domain Power 3896.110
District Employees 3896.151
General Powers Regarding Financial Matters 3896.152
Borrowing Money 3896.153
Impact Fees and Assessments 3896.154
Certain Residential Property Not Exempt 3896.155
Maintenance and Operation Tax 3896.156
Use of Surplus Maintenance and Operation Money 3896.157
Bond Issuance Plan Required Before Issuing Bonds 3896.158
Bonds and Other Obligations 3896.159
Bond Maturity 3896.160
Taxes for Bonds and Other Obligations 3896.161
Project Development Agreement Required to Impose Taxes or Borrow Money, Including Bonds 3896.162
City Not Required to Pay District Obligations 3896.201
Dissolution by City Ordinance 3896.202
Collection of Assessments and Other Revenue 3896.203
Assumption of Assets and Liabilities
Green check means up to date. Up to date

Accessed:
Jun. 5, 2024

§ 3896.160’s source at texas​.gov