1. (a) A municipality may not issue bonds under this subchapter creating a debt against the municipality or an improvement district unless the municipality provides for the imposition of an annual ad valorem tax on property in the improvement district at a rate sufficient to:

   1. (1) pay the interest on the bonds; and
   2. (2) create a sinking fund of at least two percent on the bonds.
2. (b) The rate of the tax may not exceed 50 cents on the $100 valuation of property taxable by the municipality.
3. (c) The tax is in addition to other taxes imposed by the municipality or authorized to be imposed by the municipal charter.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999.