Tex. Transp. Code Section 173.306
Tax Increment Bonds and Notes Issued by Local Government Member in Certain Districts


(a)

This section applies only to a district created before January 1, 2005.

(b)

A local government member of a district creating a transportation infrastructure zone may issue tax increment bonds or notes, including refunding bonds, secured by revenue in the local government’s tax increment fund. Proceeds of bonds issued under this section may be used to:

(1)

pay project costs for the zone on behalf of which the bonds or notes were issued; or

(2)

satisfy claims of holders of the bonds or notes.

(c)

Tax increment bonds and notes are payable, as to both principal and interest, solely from the tax increment fund established for the transportation infrastructure zone. The local government may pledge irrevocably all or part of the fund for payment of tax increment bonds or notes. The part of the fund pledged in payment may be used only for the payment of the bonds or notes or interest on the bonds or notes until the bonds or notes have been fully paid. A holder of the bonds or notes or of coupons issued on the bonds has a lien against the fund for payment of the bonds or notes and interest on the bonds or notes and may protect or enforce the lien at law or in equity.

(d)

A tax increment bond or note is not a general obligation of the local government issuing the bond or note. A tax increment bond or note does not give rise to a charge against the general credit or taxing powers of the local government and is not payable except as provided by this section.

(e)

A local government’s obligation to deposit sales and use taxes into the tax increment fund is not a general obligation of the local government. An obligation to make payments from sales and use taxes does not give rise to a charge against the general credit or taxing powers of the local government and is not payable except as provided by this section. A tax increment bond or note issued under this section that pledges payments must state the restrictions of this section on its face.

(f)

A tax increment bond or note may not be included in any computation of the debt of the issuing local government.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1307 (H.B. 3030), Sec. 3, eff. September 1, 2011.

Source: Section 173.306 — Tax Increment Bonds and Notes Issued by Local Government Member in Certain Districts, https://statutes.­capitol.­texas.­gov/Docs/TN/htm/TN.­173.­htm#173.­306 (accessed Jun. 5, 2024).

173.001
Definition of Person
173.002
Definitions
173.003
Location of Municipality in County
173.004
Nature of District
173.051
Creation of District
173.052
Addition of Political Subdivision or Other Public Entity to District
173.101
Control of District
173.102
Composition of Board
173.103
Vacancy
173.104
Presiding Officer
173.105
Meetings
173.106
Board Meetings by Telephone or Videoconference
173.107
Rules for Proceedings
173.108
Compensation
173.109
Employees
173.110
Executive Committee
173.111
Retirement Benefits
173.151
General Powers of District
173.152
Rules
173.153
Agreements Generally
173.154
Agreements with Other Entities for Joint Use
173.155
Joint Ownership Agreements
173.156
Exclusive Development Agreements
173.157
Interlocal Agreements with Commission
173.158
Awarding Construction or Purchase Contracts
173.159
Eminent Domain
173.160
Suits
173.161
Changing Name of District
173.201
General Authority over Commuter Rail Facilities
173.202
Powers Relating to District Property
173.203
Use and Alteration of Property of Another Political Subdivision
173.204
Rules Governing System and Routings
173.205
Acquisition of Property
173.206
Acquisition of Rolling Stock and Other Property
173.207
Compensation for Use of System Facilities
173.208
Operation or Use Contracts
173.209
Rail Transportation Services Agreements with Other Political Subdivisions
173.251
Fiscal Year
173.252
Annual Budget
173.253
Grants and Loans
173.254
Depository
173.255
Purchase of Additional Insured Provisions
173.256
Financing of Certain Transportation Infrastructure
173.257
Tax Exemption
173.301
Revenue Bonds
173.302
Security for Payment of Bonds
173.303
Bonds as Authorized Investments and Security for Deposits of Public Funds
173.304
Limit on Power
173.305
Tax Increment Fund for Transportation Infrastructure Zone in Certain Districts
173.306
Tax Increment Bonds and Notes Issued by Local Government Member in Certain Districts
173.351
Tax Authorized
173.352
Tax Rate
173.353
Preemption of Other Sales and Use Taxes
173.354
Applicability of Tax Code
173.355
Notice to Comptroller
173.356
Notice to Local Governments
173.357
Acquisition of Additional Territory Subject to Tax
173.358
Duty of Comptroller
173.359
Effective Date of Tax

Accessed:
Jun. 5, 2024

§ 173.306’s source at texas​.gov