Texas § SD.9018.058 - TAX LIABILITY OF EXCLUDED TERRITORY

§ SD.9018.058. TAX LIABILITY OF EXCLUDED TERRITORY

TAX LIABILITY OF EXCLUDED TERRITORY; BONDS OUTSTANDING. (a) Territory excluded by an election is not liable for any obligations voted by the district after the election. (b) The excluded territory remains liable for the payment of taxes to pay obligations incurred before the exclusion until: (1) all of the holders of outstanding bonds: (A) consent to the release of the excluded territory; and (B) file the consent in writing with the secretary of the district; or (2) the obligations are paid or refunded. (c) The territory assuming the obligations is first subject to taxes for the payment of the obligations. The taxes against the excluded territory are levied only to prevent default on the obligations, except the district may levy taxes against the territory to create and maintain a reserve for that contingency. The reserve may not exceed the proportionate amount, based on tax valuations, of the average annual principal and interest requirements on the outstanding obligations. (d) If the bonds are refunded, the resolution must expressly provide for the release of the excluded territory from the obligation to pay further taxes. Added by Acts 2013, 83rd Leg., R.S., Ch. 112 (S.B. 1026 ), Sec. 1.06, eff. April 1, 2015. SUBCHAPTER C. BOARD OF DIRECTORS