Tex. Spec. Dist. Local Laws Code § 3886.202 · Subchapter E. BONDS AND OTHER OBLIGATIONS
TAXES FOR BONDS.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) At the time the district issues bonds payable wholly or partly from ad valorem taxes, the board shall provide for the annual imposition of an ad valorem tax, without limit as to rate or amount, as required by Section 54.601, Water Code.
(b) The board shall annually impose the tax while all or part of the bonds are outstanding. Sections 54.601 and 54.602, Water Code, govern the amount and rate of the tax.
(c) The district annually shall impose the tax on all taxable property in the district in an amount sufficient to:
(1) pay the interest on the bonds or other obligations as the interest becomes due;
(2) 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
(3) pay the expenses of imposing the tax.
(d) The district may not issue bonds or other obligations that are secured by and payable from ad valorem taxes unless the bonds and the imposition of taxes are approved by:
(1) a majority of the district voters voting at an election for that purpose; and
(2) the governing body of the town.
(e) The district shall hold an election required by this section in the manner provided by Chapter 54, Water Code.
Notes and commentary — not statutory text
History
Added by Acts 2009, 81st Leg., R.S., Ch. 1077 (H.B. 4752), Sec. 1, eff. September 1, 2009.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/SD/htm/SD.3886.htm
- Text hash
- sha256 dc8171a2adf1313363ed82fed67c235f164f396b4a8ee4c5d17dd5c0feea5c71
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
This section cites
Provisions in this library that the text above cites, as it prints each citation. A range cited as “ss. 61.13-61.16” links its first and last provisions.
Water Code
- Tex. Water Code ch. 54MUNICIPAL UTILITY DISTRICTSPrinted as Chapter 54, Water Code
- Tex. Water Code § 54.601TAX LEVY FOR BONDS.Printed as Section 54.601, Water Code | Sections 54.601 and 54.602, Water Code
- Tex. Water Code § 54.602ESTABLISHMENT OF TAX RATE IN EACH YEAR.Printed as Sections 54.601 and 54.602, Water Code
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.