CHAPTER 256. FUNDS AND TAXES FOR COUNTY ROADS

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TRANSPORTATION CODE

TITLE 6. ROADWAYS

SUBTITLE C. COUNTY ROADS AND BRIDGES

CHAPTER 256. FUNDS AND TAXES FOR COUNTY ROADS

SUBCHAPTER A. FUNDS USED FOR COUNTY ROADS; GENERAL PROVISIONS

Sec. 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, Sec. 1, eff. Sept. 1, 1995.

Sec. 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.

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, Sec. 1, eff. Sept. 1, 1995.

Amended by Acts 1997, 75th Leg., ch. 1423, Sec. 18.02, eff. Sept.

1, 1997; Acts 2001, 77th Leg., ch. 943, Sec. 2, eff. Sept. 1,

2001.

Sec. 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, Sec. 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, Sec. 1, eff. Sept. 1, 1995.

Amended by Acts 1997, 75th Leg., ch. 1423, Sec. 18.03, eff. Sept.

1, 1997; Acts 2003, 78th Leg., ch. 1310, Sec. 121(29), eff. June

20, 2003.

Sec. 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, Sec. 1, eff. Sept. 1, 1995.

Sec. 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.

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, Sec. 1, eff. Sept. 1, 1995.

Sec. 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.

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, Sec. 1, eff. Sept. 1, 1995.

Sec. 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, Sec. 1, eff. Sept. 1, 1995.

Sec. 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).

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, Sec. 1, eff. Sept. 1, 1995.

Sec. 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.

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, Sec. 30.17(a), eff. Sept.

1, 1997; Acts 1997, 75th Leg., ch. 917, Sec. 3, eff. Sept. 1,

1997. Amended by Acts 2003, 78th Leg., ch. 1310, Sec. 119, eff.

Sept. 1, 2003.

Sec. 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, Sec. 22, eff. Sept. 1,

1999.

SUBCHAPTER B. TAXES FOR COUNTY ROADS

Sec. 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.

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, Sec. 1, eff. Sept. 1, 1995.

Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.374, eff. Sept.

1, 2001.

Sec. 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.

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, Sec. 1, eff. Sept. 1, 1995.

Sec. 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.

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, Sec. 1, eff. Sept. 1, 1995.

Sec. 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.

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, Sec. 1, eff. Sept. 1, 1995.

Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.375, eff. Sept.

1, 2001.

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

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