Tex. Local Government Code § 363.154
This is the official text of Tex. Local Government Code § 363.154, part of Texas’s Local Government Code — governs the powers and operations of Texas cities and counties.
Not legal advice. This page reproduces the official text of a government statute for reference only. Laws change, and how a statute applies depends on your specific facts. For advice about your situation, consult a licensed attorney in your state.
§ 363.154. USE OF REVENUE.
Official statutory text
(a) In a district created by a county, the board, from the sales and use tax revenue distributed to the district under Section 323.105, Tax Code, must budget, to the extent practicable:
(1) not less than 49.75 percent of the revenue to finance programs for which applications are submitted under Section 363.209(a);
(2) not less than 24.87 percent of the revenue to finance programs for which applications are submitted under Section 363.209(b); and
(3) not less than 24.87 percent of the revenue to be distributed under Subsection (b) or (d).
(b) In a district containing more than one municipality, the funds under Subsection (a)(3) shall be apportioned to the municipalities of the district based on a formula that averages the proportionate percentage of:
(1) the population of a municipality to the total population of the district;
(2) the index crime reported in each municipality in the district to the total index crime reported in the district; and
(3) the sales tax generated by each municipality to the total sales tax generated in the district based on the amount collected during the preceding year.
(c) The regional council of governments of a county shall compute the formula described by Subsection (b). The regional council of governments shall provide the population estimates and the index crime statistics that are required to compute the formula. The regional council of governments shall provide the district with a statement of the amounts that the district must make available to each municipality in a district before the board adopts the budget and at that time also shall provide the district with a detailed summary of the computation.
(d) In a district containing only one municipality, the funds under Subsection (a)(3) shall be apportioned to the municipality.
(e) In a district created by a municipality, the board may spend the revenue derived from the sales and use tax distributed under Section 321.108, Tax Code, only for a purpose authorized by Section 363.151.
(f) The budget distribution described by Subsection (a) or (e) shall be computed after a county or municipality has been properly reimbursed for expenses described by Section 363.062.
(1) not less than 49.75 percent of the revenue to finance programs for which applications are submitted under Section 363.209(a);
(2) not less than 24.87 percent of the revenue to finance programs for which applications are submitted under Section 363.209(b); and
(3) not less than 24.87 percent of the revenue to be distributed under Subsection (b) or (d).
(b) In a district containing more than one municipality, the funds under Subsection (a)(3) shall be apportioned to the municipalities of the district based on a formula that averages the proportionate percentage of:
(1) the population of a municipality to the total population of the district;
(2) the index crime reported in each municipality in the district to the total index crime reported in the district; and
(3) the sales tax generated by each municipality to the total sales tax generated in the district based on the amount collected during the preceding year.
(c) The regional council of governments of a county shall compute the formula described by Subsection (b). The regional council of governments shall provide the population estimates and the index crime statistics that are required to compute the formula. The regional council of governments shall provide the district with a statement of the amounts that the district must make available to each municipality in a district before the board adopts the budget and at that time also shall provide the district with a detailed summary of the computation.
(d) In a district containing only one municipality, the funds under Subsection (a)(3) shall be apportioned to the municipality.
(e) In a district created by a municipality, the board may spend the revenue derived from the sales and use tax distributed under Section 321.108, Tax Code, only for a purpose authorized by Section 363.151.
(f) The budget distribution described by Subsection (a) or (e) shall be computed after a county or municipality has been properly reimbursed for expenses described by Section 363.062.
Status: in_force · Read it on the official government site
Need a lawyer in Texas?
Find a Texas lawyer
About this page: Statute text is reproduced from official government publishers via the
Open US Law dataset
(Vaquill AI, snapshot v2026.08, CC BY 4.0). Primary legislative text like this is public domain under the government-edicts doctrine
(Georgia v. Public.Resource.Org, 2020). We link every section back to its official source so you can verify it independently.