Tex. Spec. Dist. Local Laws Code Section 3972.0603
Taxes for Bonds and Other Obligations

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 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; and

(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.
Added by Acts 2019, 86th Leg., R.S., Ch. 1010 (H.B. 4730), Sec. 1, eff. January 1, 2020.

Source: Section 3972.0603 — Taxes for Bonds and Other Obligations, https://statutes.­capitol.­texas.­gov/Docs/SD/htm/SD.­3972.­htm#3972.­0603 (accessed May 26, 2025).

3972.0101
Definitions 3972.0102
Creation and Nature of District 3972.0103
Purpose 3972.0104
Findings of Benefit and Public Use 3972.0105
Initial District Territory 3972.0106
Eligibility for Inclusion in Special Zones 3972.0107
Applicability of Municipal Management District Law 3972.0108
Enforceability of Municipal Consent Agreement 3972.0109
Consent of Municipality and Entitlement Agreement Required 3972.0110
Construction of Chapter 3972.0201
Governing Body 3972.0202
Qualifications of Directors 3972.0203
Appointment of Directors 3972.0204
Vacancy 3972.0205
Officers 3972.0206
Compensation 3972.0207
Liability Insurance 3972.0208
No Executive Committee 3972.0209
Board Meetings 3972.0210
Initial Directors 3972.0301
General Powers and Duties 3972.0302
Improvement Projects and Services 3972.0303
Improvement Project and Service in Definable Area 3972.0304
Economic Development Programs 3972.0305
Parking Facilities 3972.0306
Adding or Removing Territory 3972.0307
No Eminent Domain Power 3972.0401
Division of District 3972.0402
Law Applicable to New District 3972.0403
Division Procedures 3972.0404
Contract Authority of New Districts 3972.0501
Disbursements and Transfers of Money 3972.0502
Tax and Assessment Abatements 3972.0601
Bonds and Other Obligations 3972.0602
Operation and Maintenance Tax 3972.0603
Taxes for Bonds and Other Obligations 3972.0701
Applicability 3972.0702
Conflict of Laws 3972.0703
Written Agreement Regarding Special Appraisals 3972.0704
Requirements for Advertising Bond Issue 3972.0705
Requirements for Bond Issue 3972.0706
Requirements for Collection of Revenue to Pay Bonds 3972.0901
Dissolution by City
Green check means up to date. Up to date

Verified:
May 26, 2025

§ 3972.0603. Taxes for Bonds & Other Obligations's source at texas​.gov