Tex. Spec. Dist. Local Laws Code Section 3945.0604
Tax After Municipal Annexation

(a)

This section applies to the district after a municipality annexes part of the territory in the district and imposes the municipality’s sales and use tax in the annexed territory.

(b)

If at the time of annexation the district has outstanding debt or other obligations payable wholly or partly from district sales and use tax revenue, Section 321.102 (Effective Dates: New Tax, Tax Repeal, Boundary Change)(g), Tax Code, applies to the district.

(c)

If at the time of annexation the district does not have outstanding debt or other obligations payable wholly or partly from district sales and use tax revenue, the district may:

(1)

exclude the annexed territory from the district, if the district has no outstanding debt or other obligations payable from any source; or

(2)

reduce the sales and use tax in the annexed territory by resolution or order of the board to a rate that, when added to the sales and use tax rate imposed by the municipality in the annexed territory, is equal to the sales and use tax rate imposed by the district in the district territory that was not annexed by the municipality.
Added by Acts 2021, 87th Leg., R.S., Ch. 752 (H.B. 4612), Sec. 1, eff. September 1, 2021.

Source: Section 3945.0604 — Tax After Municipal Annexation, https://statutes.­capitol.­texas.­gov/Docs/SD/htm/SD.­3945.­htm#3945.­0604 (accessed Jun. 5, 2024).

3945.0101
Definitions 3945.0102
Creation and Nature of District 3945.0103
Purpose 3945.0104
Findings of Benefit and Public Purpose 3945.0105
Initial District Territory 3945.0106
Eligibility for Inclusion in Special Zones 3945.0107
Applicability of Municipal Management Districts Law 3945.0108
Construction of Chapter 3945.0109
Conflicts of Law 3945.0201
Governing Body 3945.0202
Compensation 3945.0203
Temporary Directors 3945.0204
Disqualification of Directors 3945.0301
General Powers and Duties 3945.0302
Improvement Projects and Services 3945.0303
Recreational Facilities 3945.0304
Authority for Road Projects 3945.0305
Conveyance and Approval of Road Project 3945.0306
Nonprofit Corporation 3945.0307
Law Enforcement Services 3945.0308
Membership in Charitable Organizations 3945.0309
Economic Development Programs 3945.0310
Strategic Partnership Agreement 3945.0311
Regional Participation Agreement 3945.0312
Parking Facilities 3945.0313
Adding or Excluding Land 3945.0314
Disbursements and Transfers of Money 3945.0315
Audit Exemption 3945.0316
No Eminent Domain Power 3945.0401
Petition Required for Financing Services and Improvements with Assessments 3945.0402
Method of Notice for Hearing 3945.0403
Assessments 3945.0501
Tax Election Required 3945.0502
Operation and Maintenance Tax 3945.0503
Authority to Borrow Money and to Issue Bonds and Other Obligations 3945.0504
Bonds Secured by Revenue or Contract Payments 3945.0505
Bonds Secured by Ad Valorem Taxes 3945.0506
Consent of Municipality Required 3945.0601
Applicability of Certain Tax Code Provisions 3945.0602
Election 3945.0603
Sales and Use Tax Rate 3945.0604
Tax After Municipal Annexation 3945.0605
Notification of Rate Change 3945.0606
Use of Revenue 3945.0607
Abolition of Tax 3945.0901
Dissolution
Green check means up to date. Up to date

Accessed:
Jun. 5, 2024

§ 3945.0604’s source at texas​.gov