Sec. 3886.202. TAXES FOR BONDS. (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.
Added by Acts 2009, 81st Leg., R.S., Ch. 1077 (H.B. 4752), Sec. 1, eff. September 1, 2009.Section: Previous 3886.108 3886.109 3886.110 3886.111 3886.151 3886.152 3886.153 3886.154 3886.201 3886.202 3886.203 3886.204 3886.205 3886.251 3886.252 Next
Last modified: September 28, 2016