Statutory tax districts

Statutory tax districts are specially designated areas within which local governments can levy taxes to fund specific public services and infrastructure projects. These districts are established by legislation and can include mechanisms for tax collection, allocation, and regulation to ensure the targeted use of the generated funds.

2 Statutory tax districts examples

  • Description
    (c)         STATUTORY TAX DISTRICTS. If the Property is situated in a utility or other statutorily created district providing water, sewer, drainage, or flood control facilities and services, Chapter 49, Texas Water Code, requires Seller to deliver and Purchaser to sign the statutory notice relating to the tax rate, bonded indebtedness, or standby fee of the district prior to final execution of this Agreement.
    Document
    Lodging Fund REIT III, Inc.
  • Description
    (3) STATUTORY TAX DISTRICTS: If the Property is situated in a utility or other statutorily created district providing water, sewer, drainage, or flood control facilities and services, Chapter 49, Texas Water Code, requires Seller to deliver and Buyer to sign the statutory notice relating to the tax rate, bonded indebtedness, or standby fee of the district prior to final execution of this contract.
    Document
    SG BLOCKS, INC. (SGBX)

What is a Statutory Tax District?

A Statutory Tax District is a legally defined geographic area within which certain taxes are levied by a governing authority. These districts are established by law, and their purpose is typically to fund specific public services or infrastructure projects. Examples of statutory tax districts include school districts, water districts, and fire protection districts. The taxes collected within these districts are used exclusively for the designated services.

Example: A school district that levies a property tax to fund local schools.

When should I use a Statutory Tax District?

You should consider using a Statutory Tax District when:

  • There is a need to fund public services that provide a direct benefit to the community within a specific area.
  • Legislative or regulatory frameworks necessitate the creation of such districts to ensure compliance and appropriate allocation of tax revenues.
  • You need to ensure that tax revenues are collected and used exclusively for the intended purpose, such as improving infrastructure, maintaining public schools, or providing emergency services.

Example: Creating a fire protection district to fund firefighting services within a rural community.

How do I write a Statutory Tax District?

When writing about or establishing a Statutory Tax District, follow these steps:

  1. Identify the Purpose: Determine the specific public service or project that requires funding.
  2. Define the Geographic Boundaries: Clearly outline the area that will be included in the district.
  3. Legislative Approval: Ensure that the creation of the district is approved by the relevant legislative body or through a public vote, as required by law.
  4. Establish Tax Rates: Determine the tax rates to be levied within the district to meet the funding needs.
  5. Draft Legal Documentation: Prepare the necessary legal documents, including the district’s charter or bylaws, and ensure all legal requirements are met.

Example: Drafting a resolution to establish a water district within a municipality, including the specific tax rates and geographic boundaries.

Which contracts typically contain Statutory Tax District?

Contracts that typically contain references to or provisions for Statutory Tax Districts include:

  • Municipal Service Agreements: Contracts between local governments and service providers that stipulate the creation of districts to fund specific services.
  • Public-Private Partnership (PPP) Agreements: Contracts where private entities partner with public authorities to deliver services or infrastructure projects funded by tax districts.
  • Construction Contracts: Agreements for infrastructure projects that may require funding from statutory tax districts.
  • Educational Service Agreements: Contracts related to the operation and funding of schools within school districts.

Example: A public-private partnership contract for constructing a new recreational facility funded by a newly created park district.

Analyze your contracts.
Extract important clauses.

<

Try our AI contract analysis and extract important clauses and information from existing contracts.

< <
fynk app clause extraction screenshot

More Clauses from the Library

Dive deeper into the world of clauses and learn more about these other clauses that are used in real contracts.

Subordination of lease

The "Subordination of Lease" clause establishes that the tenant's lease is subordinate to the liens of any current or future mortgages on the property, giving the mortgage lender's rights priority over the tenant's rights. This means that if the property is foreclosed, the lease may be terminated unless the lender agrees otherwise.

20 example clauses

Tax disclaimer

A tax disclaimer clause states that the parties to the contract are responsible for their respective tax obligations and clarifies that the company providing a service or product will not be held liable for any tax-related issues or penalties incurred by the other party. This clause ensures that each party independently handles their tax liabilities in compliance with relevant laws.

12 example clauses

Tendering party

The "Tendering Party" clause refers to the party responsible for formally offering to supply goods or services as outlined in a contract. It establishes the obligations and timelines for this party to meet in ensuring that their delivery meets the contract requirements.

10 example clauses