Tex.
Tax Code Section 311.014
Tax Increment Fund
(a)
In addition to the deposits required by Section 311.013 (Collection and Deposit of Tax Increments), all revenues from the sale of tax increment bonds or notes, revenues from the sale of any property acquired as part of the tax increment financing plan, and other revenues to be used in the reinvestment zone shall be deposited in the tax increment fund for the zone.(b)
Money may be disbursed from the fund only to satisfy claims of holders of tax increment bonds or notes issued for the zone, to pay project costs for the zone, to make payments pursuant to an agreement made under Section 311.010 (Powers and Duties of Board of Directors)(b) dedicating revenue from the tax increment fund, or to repay other obligations incurred for the zone.(c)
Subject to an agreement with the holders of tax increment bonds or notes, money in a tax increment fund may be temporarily invested in the same manner as other funds of the municipality or county that created the zone.(d)
After all project costs, all tax increment bonds or notes issued for a reinvestment zone, and any other obligations incurred for the zone have been paid, and subject to any agreement with bondholders, any money remaining in the tax increment fund shall be paid to the municipality or county that created the zone and other taxing units levying taxes on property in the zone in proportion to the municipality’s or county’s and each other unit’s respective share of the total amount of tax increments derived from taxable real property in the zone that were deposited in the fund during the fund’s existence.(e)
A taxing unit that levies taxes on real property in a reinvestment zone may make a loan to the board of directors of the zone for deposit in the tax increment fund for the zone if the governing body of the taxing unit determines that the loan is beneficial to, and serves a public purpose of, the taxing unit. The loan is payable on the terms agreed to by the taxing unit, or an instrumentality of the taxing unit if applicable, and the board of directors of the zone. A loan under this subsection:(1)
is not considered to be a tax increment bond or note under Section 311.015 (Tax Increment Bonds and Notes); and(2)
is considered to be:(A)
an authorized investment under Chapter 2256 (Public Funds Investment), Government Code; and(B)
an obligation incurred for the zone.(f)
Money in the tax increment fund for a reinvestment zone may be transferred to the tax increment fund for an adjacent zone if:(1)
the taxing units that participate in the zone from which the money is to be transferred participate in the adjacent zone and vice versa;(2)
each participating taxing unit has agreed to deposit the same portion of its tax increment in the fund for each zone;(3)
each participating taxing unit has agreed to the transfer; and(4)
the holders of any tax increment bonds or notes issued for the zone from which the money is to be transferred have agreed to the transfer.
Source:
Section 311.014 — Tax Increment Fund, https://statutes.capitol.texas.gov/Docs/TX/htm/TX.311.htm#311.014 (accessed Jun. 5, 2024).
