TRANSPORTATION CODE
CHAPTER 256. FUNDS AND TAXES FOR COUNTY ROADS
SUBCHAPTER A. FUNDS USED FOR COUNTY ROADS; GENERAL PROVISIONS
§ 256.001. USE OF COUNTY ROAD AND BRIDGE
FUND. (a) Money in the road and bridge fund of a county may be
used only for working public roads or building bridges, except as
otherwise provided by law.
(b) Money in the fund may be spent only by order of the
commissioners court of the county. The court may make the necessary
orders for using the money for the purposes provided by this
section.
Acts 1995, 74th Leg., ch. 165, § 1, eff. Sept. 1, 1995.
§ 256.002. DISTRIBUTION OF COUNTY AND ROAD DISTRICT
HIGHWAY FUND. (a) The comptroller shall distribute to the
counties on or before October 15 of each year the money appropriated
from the county and road district highway fund for that fiscal year.
(b) The money appropriated under Subsection (a) shall be
allocated among the counties as follows:
(1) one-fifth according to area, determined by the
ratio of the area of the county to the area of the state;
(2) two-fifths according to rural population,
determined by the ratio of the rural population of the county to the
rural population of the state; and
(3) two-fifths according to lateral road mileage,
determined by the ratio of the mileage of lateral roads in the
county to the mileage of lateral roads in the state as of January 1
of the year of the allocation as shown by the records of the
State-Federal Highway Planning Survey and the department.
(c) On its own motion or at the request of a county, the
commission may have a survey made of the county's lateral road
mileage. If a survey is made, its results shall be substituted for
the corresponding government information to be used under
Subsection (b)(3). The governmental entity that requests the
survey shall pay for it.
(d) Except as provided by Section 153.503(3)(A), Tax Code,
the comptroller may not deposit tax receipts or other money to the
credit of the county and road district highway fund.
Acts 1995, 74th Leg., ch. 165, § 1, eff. Sept. 1, 1995. Amended
by Acts 1997, 75th Leg., ch. 1423, § 18.02, eff. Sept. 1, 1997;
Acts 2001, 77th Leg., ch. 943, § 2, eff. Sept. 1, 2001.
§ 256.003. USE OF REVENUES FROM COUNTY AND ROAD DISTRICT
HIGHWAY FUND. (a) A county may use the money it receives under
Section 256.002 only for:
(1) purchasing right-of-way for lateral roads,
farm-to-market roads, or state highways;
(2) constructing and maintaining lateral roads,
including the hiring of labor and the purchase of materials,
supplies, and equipment; or
(3) paying the principal, interest, and sinking fund
requirements maturing during the fiscal year on bonds, warrants, or
other legal obligations incurred to finance activities described in
Subdivisions (1) and (2).
(b) Repealed by Acts 2003, 78th Leg., ch. 1310, §
121(29).
(c) Repealed by Acts 2003, 78th Leg., ch. 1310, §
121(29).
(d) A county may require that bids for construction funded
in whole or part by money received under Section 256.002 be
submitted to the commission in the manner provided for bids for
construction of a state highway.
(e) On the request of a county, the commission shall provide
technical and engineering assistance in making surveys, preparing
plans and specifications, preparing project proposals, and
supervising construction. The county shall pay the costs of
providing the assistance.
Acts 1995, 74th Leg., ch. 165, § 1, eff. Sept. 1, 1995. Amended
by Acts 1997, 75th Leg., ch. 1423, § 18.03, eff. Sept. 1, 1997;
Acts 2003, 78th Leg., ch. 1310, § 121(29), eff. June 20, 2003.
§ 256.004. DEPOSITS OF TAXES TO COUNTY FARM-TO-MARKET
AND LATERAL ROAD FUND AND FLOOD CONTROL FUND. (a) The
commissioners court of a county shall credit taxes collected under
Section 256.054 to the credit of separate funds called the
farm-to-market and lateral road fund and the flood control fund.
(b) If the voters at an election held under Section 256.054
approved separately a farm-to-market and lateral road tax and a
flood control tax, the court shall credit the taxes collected to
those funds in proportion to the allocation adopted at the
election.
Acts 1995, 74th Leg., ch. 165, § 1, eff. Sept. 1, 1995.
§ 256.005. USE OF FARM-TO-MARKET AND LATERAL ROAD
FUND. (a) The farm-to-market and lateral road fund of a county is
under the jurisdiction and control of the commissioners court.
Money in the fund may be used only for the construction and
maintenance of farm-to-market and lateral roads in the county.
(b) All or part of the money in the fund may be used in
cooperation with the department in acquiring rights-of-way and in
constructing and maintaining farm-to-market and lateral roads.
(c) Money in the fund shall be spent to equitably distribute
as nearly as possible the benefits derived from the expenditures to
the commissioners' precincts in accordance with the taxable value
of property in each precinct.
Acts 1995, 74th Leg., ch. 165, § 1, eff. Sept. 1, 1995.
§ 256.006. USE OF FLOOD CONTROL FUND. (a) The flood
control fund of a county is under the jurisdiction and control of
the commissioners court. Money in the fund may be used only for
flood control purposes in the county and political subdivisions of
the county, including:
(1) any soil conservation activity such as contouring,
terracing, or tank building; or
(2) any other activity that controls or conserves
moisture or water.
(b) Money in the fund shall be spent to equitably distribute
as nearly as possible the benefits derived from the expenditures to
the commissioners' precincts in accordance with the taxable value
of property in each precinct.
(c) All or part of the money in the fund may be used in
connection with the plans and programs of:
(1) the United States Soil Conservation Service;
(2) the Texas Agricultural Extension Service;
(3) a state soil conservation district, conservation
and reclamation district, drainage district, water control and
improvement district, navigation district, flood control district,
or levee improvement district; or
(4) a municipality.
(d) Plans for an improvement constructed with money from the
fund must be approved by the county and, if applicable, the affected
political subdivision.
(e) The commissioners court may hire a federal or state soil
conservation engineer or personnel of the Texas Agricultural
Extension Service to plan a soil, water, erosion, and drainage
program for flood control under this section and may acquire the
machinery, equipment, or material useful in carrying out the
program. The machinery and equipment shall be made available to the
owner of a farm or ranch for purposes consistent with the purposes
of this section. A farm or ranch owner using the machinery or
equipment shall compensate the county for the use according to the
actual expenses incurred by the county, not including depreciation.
Acts 1995, 74th Leg., ch. 165, § 1, eff. Sept. 1, 1995.
§ 256.007. TRANSFERS OF SURPLUS REGISTRATION FEE
REVENUE. The commissioners court of a county that does not impose
a tax for the construction and maintenance of roads and bridges may
transfer surplus money derived from motor vehicle registration fees
to any county fund that the court designates and may spend that
money for any purpose authorized by Section 7-a, Article VIII,
Texas Constitution.
Acts 1995, 74th Leg., ch. 165, § 1, eff. Sept. 1, 1995.
§ 256.008. STATE FUNDING OF FARM-TO-MARKET
ROADS. (a) Money in the farm-to-market road fund may be used only
to finance the construction, improvement, and maintenance of
farm-to-market roads by the department.
(b) The department shall use money made available for the
construction, improvement, and maintenance of farm-to-market roads
so that not less than $23 million is used each year for those
purposes on farm-to-market roads selected under Subsection (c).
(c) The money spent under Subsection (b) shall be used for a
system of roads selected by the department after consultation with
the commissioners courts of the counties to identify the most
needed roads in the counties. The department shall make the
selections in a manner intended to ensure equitable and judicious
distribution of money and work among the counties.
(d) To be selected, a road must have the following general
characteristics:
(1) it may not be a potential addition to the federal
aid primary highway system;
(2) it must serve rural areas primarily and must
connect farms, ranches, rural homes, sources of natural resources
such as oil, mines, timber, and water loading points, schools,
churches, and points of public congregation, including community
developments and villages;
(3) it must be capable of contributing to the creation
of economic values in the areas it serves;
(4) it must preferably serve as a public school bus
route or rural free delivery postal route; and
(5) it must be capable of early integration into the
improved state road system, and at least one end of the road should
connect with an improved road or a road that is soon to be improved
that is in the state road system.
Acts 1995, 74th Leg., ch. 165, § 1, eff. Sept. 1, 1995.
§ 256.009. REPORT TO COMPTROLLER. (a) Not later than
January 30 of each year, the county auditor or, if the county does
not have a county auditor, the official having the duties of the
county auditor shall file a report with the comptroller that
includes:
(1) an account of how the money allocated to a county
under Section 256.002 during the preceding year was spent;
(2) a description, including location, of any new
roads constructed in whole or in part with the money allocated to a
county under Section 256.002 during the preceding year;
(3) any other information related to the
administration of Sections 256.002 and 256.003 that the comptroller
requires; and
(4) the total amount of expenditures for county road
and bridge construction, maintenance, rehabilitation, right-of-way
acquisition, and utility construction and other appropriate road
expenditures of county funds in the preceding county fiscal year
that are required by the constitution or other law to be spent on
public roads or highways.
(b) The report must be in a form prescribed by the
comptroller.
(c) The comptroller may distribute money under Section
256.002(a) to a county only if the most recent report required by
Subsection (a) has been filed.
(d) A county official or employee shall provide to the
comptroller on request any information necessary to determine the
legality of the use of money allocated under Section 256.002.
Added by Acts 1997, 75th Leg., ch. 165, § 30.17(a), eff. Sept. 1,
1997; Acts 1997, 75th Leg., ch. 917, § 3, eff. Sept. 1, 1997.
Amended by Acts 2003, 78th Leg., ch. 1310, § 119, eff. Sept. 1,
2003.
§ 256.010. APPLICABILITY OF CHAPTER TO COUNTY OPERATING
UNDER SPECIAL ROAD TAX LAW. A county operating under a special
road tax law may take any action authorized by this chapter.
Added by Acts 1999, 76th Leg., ch. 227, § 22, eff. Sept. 1, 1999.
SUBCHAPTER B. TAXES FOR COUNTY ROADS
§ 256.051. COUNTY, PRECINCT, AND ROAD DISTRICT BOND
TAXES. (a) In each year in which bonds issued under Chapter 1471,
Government Code, are outstanding, the county, precinct, or road
district that issued the bonds shall impose taxes in an amount
sufficient to pay the principal of and interest on the bonds.
(b) The taxes shall be imposed in the manner provided by
Sections 51.502 through 51.506, Water Code. A reference in Chapter
257 or in Chapter 1471, Government Code, to ad valorem taxes applies
to a tax levied by the commissioners court under this section on a
basis other than the ad valorem basis.
(c) Taxes for bonds issued on the full faith and credit of
the county shall be assessed and collected by the county
assessor-collector in the manner provided by law for the assessment
and collection of other county taxes.
(d) Taxes for bonds issued for and on the full faith and
credit of a precinct or road district shall be assessed and
collected by the county assessor-collector in the manner provided
for the assessment and collection of common school district taxes.
(e) The county assessor-collector shall pay taxes collected
under this section to the county treasurer in the manner that other
taxes are paid.
Acts 1995, 74th Leg., ch. 165, § 1, eff. Sept. 1, 1995. Amended
by Acts 2001, 77th Leg., ch. 1420, § 8.374, eff. Sept. 1, 2001.
§ 256.052. ADOPTION OF SPECIAL ROAD TAX. (a) At an
election held under this section, a county or political subdivision
or defined district of a county may adopt the additional ad valorem
tax not to exceed 15 cents on the $100 valuation of property
provided by Section 9, Article VIII, Texas Constitution, for the
further maintenance of the county roads.
(b) On a petition signed by a majority of the registered
voters of a political subdivision or other specified portion of a
county, the commissioners court of the county by order shall
declare the political subdivision or specified portion of the
county to be a defined district and shall record the order in the
court's minutes. The petition must define by metes and bounds the
territory requested to be included in the proposed defined
district.
(c) The commissioners court shall order an election to adopt
the tax if it receives a petition requesting the election that is
signed by:
(1) at least 200 registered voters of the county, if
the petition requests an election to approve a tax for the county;
or
(2) at least 50 registered voters of the political
subdivision or defined district, if the petition requests an
election to approve a tax for a political subdivision or defined
district.
(d) The commissioners court shall set the rate of the tax in
the election order. The court shall order the election to be held
on the first authorized uniform election date prescribed by
Subchapter A, Chapter 41, Election Code, that occurs after the 20th
day after the date the election is ordered.
(e) The county judge shall issue an election proclamation.
(f) The ballot for the election shall be printed to permit
voting for or against the proposition: "Adopting a road tax."
(g) If a majority of the votes received in the election
favor adoption of the tax, the commissioners court shall impose the
tax in the amount specified in the order for the election in the
same manner as it imposes other taxes. If the election is held in
time, in the year of the election the court shall impose the tax at
the same time as other county taxes. Otherwise, the court may
impose the tax at any time before the tax roll is made out. If a
greater rate is not imposed for a year, the court may lower the rate
for the next year without a petition for that action.
(h) A petition calling for an election to adopt a tax under
this section may not be granted on or before the first anniversary
of the date of an election held under this section at which the
voters do not approve the adoption of the tax.
(i) This section does not authorize the issuance of bonds.
Acts 1995, 74th Leg., ch. 165, § 1, eff. Sept. 1, 1995.
§ 256.053. REPEAL OF SPECIAL ROAD TAX. (a) The
commissioners court of a county may order and conduct an election to
repeal a tax adopted under Section 256.052 in the manner provided
for an election to adopt the tax.
(b) A petition requesting an election to repeal the tax may
not be granted on or before the second anniversary of the date of
the election at which the tax is adopted.
(c) The commissioners court may grant a petition calling for
an election to repeal the tax only if satisfactory proof is
presented to the court that:
(1) there is great dissatisfaction with the tax; and
(2) it is probable that a majority of the residents of
the county, political subdivision, or defined district who are
qualified to vote for the tax would vote for repeal of the tax.
Acts 1995, 74th Leg., ch. 165, § 1, eff. Sept. 1, 1995.
§ 256.054. ADDITIONAL COUNTY TAXES FOR COUNTY ROADS AND
FLOOD CONTROL; BONDS. (a) A county may impose ad valorem taxes
as provided by Section 1-a, Article VIII, Texas Constitution, for
the construction and maintenance of farm-to-market and lateral
roads or for flood control, not to exceed the maximum tax rate
established by that section, only if the taxes are approved at an
election held under this section.
(b) The commissioners court of the county may order an
election under this section on its own motion. The court shall
order an election under this section if it receives a petition
requesting the election signed by a number of registered voters of
the county equal to at least 10 percent of the number of voters who
voted in the most recent general election in the county. The court
may adopt the order only at a regular session of the court. The
order must specify the maximum rate of the tax to be voted on.
(c) The proposition submitted to the voters at the election
may provide that the tax may be used for the construction and
maintenance of farm-to-market and lateral roads, for flood control
purposes, or for both, as determined by the commissioners court. At
an election to adopt a tax for only one of those purposes, the
ballot shall be printed to permit voting for or against the
proposition: "Adopting a tax not exceeding ___ cents on each $100
valuation," specifying the purpose of the tax to be voted on. At an
election to adopt a tax for each of those purposes, the ballot shall
be printed to permit voting for or against the proposition:
"Adopting a farm-to-market and lateral roads tax not exceeding ___
cents and a flood control tax not exceeding ___ cents on each $100
valuation."
(d) In addition to the notice of the election required by
Section 4.003, Election Code, the county judge shall post a copy of
the election order at a public place in each county election
precinct not later than the 14th day before the date of the
election.
(e) If a majority of the votes received in the election
favor adoption of the tax, the commissioners court shall impose the
tax each year in the same manner as other county ad valorem taxes.
(f) The commissioners court may call a subsequent election
to change the maximum rate of a farm-to-market and lateral road tax
or flood control tax previously adopted by the county in the manner
provided by this section for an election to adopt a tax.
(g) The commissioners court of a county that adopts a tax as
provided by this section may issue negotiable county bonds or
county time warrants for the construction or improvement of
farm-to-market and lateral roads or the construction of permanent
improvements for flood control purposes if the bonds or warrants
are authorized by a majority of the votes received in an election
ordered by the commissioners court. The commissioners court shall
submit each proposition separately at the election. The
commissioners court shall issue the bonds or warrants and impose
the taxes for those bonds or warrants as provided by Subtitles A and
C, Title 9, Government Code.
Acts 1995, 74th Leg., ch. 165, § 1, eff. Sept. 1, 1995. Amended
by Acts 2001, 77th Leg., ch. 1420, § 8.375, eff. Sept. 1, 2001.
