Sec. 3916.254.  TAX AFTER ANNEXATION.  (a)  This section  applies to the district after a municipality annexes part of the  territory in the district and imposes the municipality's sales and  use tax in the annexed territory.
(b)  If at the time of annexation the district has outstanding  debt or other obligations payable wholly or partly from district sales and use tax revenue, Section 321.102(g), Tax Code, applies to the district.
(c)  If at the time of annexation the district does not have  outstanding debt or other obligations payable wholly or partly from district sales and use tax revenue, the district may:
(1)  exclude the annexed territory from the district, if  the district has no outstanding debt or other obligations payable  from any source; or
(2)  reduce the sales and use tax in the annexed territory by resolution or order of the board to a rate that, when added to the sales and use tax rate imposed by the municipality in the annexed territory, is equal to the sales and use tax rate imposed by the district in the district territory that was not  annexed by the municipality.
Added by Acts 2013, 83rd Leg., R.S., Ch. 1112 (H.B. 3860), Sec. 1, eff. June 14, 2013.