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Texas Special District Local Laws Code - SDLL § 8024A.0202. Effect of Exclusion on Indebtedness and Taxes

Current as of January 01, 2024 | Updated by Findlaw Staff

(a) Until a property's pro rata share of the district's indebtedness is paid in full after the property is excluded from the district under Section 8024A.0201:

(1) the excluded property's pro rata share of the district's indebtedness remains the obligation of the owner of the excluded property and continues to be secured by statutory liens on the excluded property;

(2) the district shall continue to levy and collect debt service taxes each year on the excluded property at the same rate levied on other property in the district;  and

(3) the taxes collected under Subdivision (2) remain pledged as security for the district's indebtedness and shall be applied exclusively to the payment of the excluded property's pro rata share of the district's indebtedness.

(b) The contract for exclusion must state the amount of or a method of determining the excluded property's pro rata share of the district's indebtedness.

(c) The owner of any part of the excluded property at any time may pay in full the remaining unpaid portion of the excluded property's pro rata share of the district's indebtedness.

(d) On payment in full of the excluded property's pro rata share of the district's indebtedness, the excluded property is released from payment of the district's debt service taxes.

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Cite this article: FindLaw.com - Texas Special District Local Laws Code - SDLL § 8024A.0202. Effect of Exclusion on Indebtedness and Taxes - last updated January 01, 2024 | https://codes.findlaw.com/tx/special-district-local-laws-code/sdll-sect-8024a-0202/

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