You ask our opinion about the constitutionality of House Bill No. 2571, Acts 1987, 70th Legislature, chapter 600, at 4700, which authorizes municipal utility districts operating under chapter 54 of the Water Code to issue "defined area bonds" to provide for facilities serving only a defined area or designated real property within the district. You note that the legislation requires that the bonds be approved by voters within the defined area or and that & property within the designated property, area is to be subject to an ad valorem tax to pay the interest and principal due on the bonds issued to pay for (The property within the defined area, of improvements. course, remains subject to taxes levied to pay for entire district.) See improvements benefitting generally Water Code §§54.801-54.812.

Specifically, you ask whether taxes levied & on certain property within a district to repay bonds issued to finance improvements benefitting & that property "equally distributed" within the are, by their nature, meaning of article XVI, section 59, of the constitution. that such taxes are equally distributed as We conclude required by the constitution.

In Dallas Countv Levee District No. 2 v. Loonev 207 S.W. 310 (Tex. 1918), the Supreme Court provided what'must be considered a classic explanation of the nature of the of article XVI, section "equal distribution" requirement 59:

p. 4023 *2 LM-836) The declaration [in article XVI, section 591 that the taxes shall be 'equally dis- tributed' simply means that they must be fairly proportioned according to benefit to the property taxed. . . . In a word, they must fairly represent the benefit to the property. . . .

The measure of benefit that will accrue to property from a local improvement is at best an approximation, and hence there is no general principal of constitutional law that in the imposition of such taxes limits the legislative power to the exact amount of pecuniary benefit which the particular property derives. While in some instances the benefit may be generally distributed throughout the district, in others it may be more confined. . . .

. . . . The effect of [article XVI, section 591 simply is that [a tax] shall be justly laid If it is in fair proportion to the benefit. then there can be no so proportioned, question but that an 'equal distribution' of the taxes will be accomplished within full meaning of the term.

207 S.W. at 312-13.

All that House Bill No. 2571 does, then, is to make plain a constitutional principal which has long governed the execution by a district of its constitutional mandate. Acts 1987, 70th Legis- Accordingly, House Bill No. 2571, lature, chapter 4700 and Water Code sections 600, at 54.801-54.812, provides for the equal distribution of a defined area or designated property tax as required by article XVI. section 59, of the Texas Constitution. JIM MATTOX

. Attorney General of Texas *3 UM-836) MARYKELLeR

Executive Assistant Attorney General

JUDGE ZOLLIE STEAKLEY

Special Assistant Attorney General

RICK GILPIN

Chairman, Opinion Committee

Prepared by Karen C. Gladney

Assistant Attorney General