Sec. 49.3076. EXCLUSION FOR FAILURE TO PROVIDE SUFFICIENT SERVICES; BONDS OUTSTANDING

(a) The board of a district that has a total area of more than 5,000 acres shall call a hearing on the exclusion of land from the district on a written petition filed with the secretary of the board by a landowner whose land has been included in and taxable by the district for more than 28 years if any bonds issued by the district payable in whole or in part from taxes of the district are outstanding and the petition:

(1) includes a signed petition evidencing the consent of the owners of a majority of the acreage proposed to be excluded, as reflected by the most recent certified tax roll of the district;

(2) includes a claim that the district has not provided the land with retail utility services;

(3) describes the property to be excluded;

(4) provides facts necessary for the board to make the findings required by Subsection (b); and

(5) is filed before August 31, 2007.

(a-1) The board of a district that has a total area of more than 1,000 acres and not more than 5,000 acres shall call a hearing on the exclusion of land from the district on a written petition filed with the secretary of the board by a landowner whose land has been included in and taxable by the district for more than 40 years if any bonds issued by the district payable in whole or in part from taxes of the district are outstanding and the petition complies with the requirements of Subsection (a).

(b) The board of a district may exclude land under this section only on finding that:

(1) the district has never provided retail utility services to the land described by the petition;

(2) the district has imposed a tax on the land for more than:

(A) 28 years if the board calls a hearing under Subsection (a); or

(B) 40 years if the board calls a hearing under Subsection (a-1); and

(3) all taxes the district has levied and assessed against the land and all fees and assessments the district has imposed against the land or the owner that are due and payable on or before the date of the petition are fully paid.

(c) Unless the district presents evidence at the hearing that conclusively demonstrates that the requirements and grounds for exclusion described by Subsection (a) or (a-1), as appropriate, and Subsection (b) have not been met, the board shall enter an order excluding the land from the district and shall redefine in the order the boundaries of the district to embrace all land not excluded.

(d) A copy of an order excluding land and redefining the boundaries of the district shall be filed in the deed records of each county in which the district is located.

(e) The exclusion of land under this section does not impair the rights of holders of any outstanding bonds, warrants, or other certificates of indebtedness of the district.

(f) After any land is excluded under this section, the district may issue any unissued additional debt approved by the voters of the district before exclusion of the land under this section without holding a new election. Additional debt issued after land is excluded from the district may not be payable from and does not create a lien against the taxable value of the excluded land.

(g) This section does not apply to irrigation districts governed by Chapter 58.

(h) For purposes of this section and Section 49.3077, "land" includes any improvements to the land, and when used in the context of property taxes, "land" has the meaning assigned to "real property" by Section 1.04, Tax Code.

Added by Acts 2003, 78th Leg., ch. 853, Sec. 1, eff. June 20, 2003. Amended by: Acts 2005, 79th Leg., Ch. 1041 , Sec. 1, eff. June 18, 2005.