ATTORNEY GENERAL OF TEXAS 

GREG ABBOTT 

The Honorable Jeff Wentworth 

Chair, Committee on Jurisprudence 

Texas State Senate 

Post Office Box 12068 

Austin, Texas 78711 

Dear Senator Wentworth: 

June 29, 2009 

Opinion No. GA-0724 

Re: Authority of local taxing units or central 

appraisal districts to collect special assessments 

imposed in public improvement districts 

(RQ-0774-GA) 

You ask whether a central appraisal district or a local taxing unit, such as a county, may 

contract to collect assessments imposed by a public improvement district ("district").! The Public 

Improvement District Assessment Act (the "Act"),2 Local Government Code chapter 3 72, subchapter 

A, authorizes a municipality to establish a district to help finance public improvements within the 

district's boundaries. See TEx. Loc. GOV'T CODE ANN. § 372.003 (Vernon 2005). The municipal 

governing body "shall apportion the cost of an improvement to be assessed against property" in the 

district "on the basis of special benefits accruing to the property because of the improvement." 

Id § 372.015(a). The governing body levies and collects assessments, also known as "special 

assessments," on property within the district. See id §§ 372.016, .017, .018(b). If a land ownerin 

the district does not pay the assessment against his property, "[a]n assessment ... , with interest, the 

expense of collection, and reasonable attorney's fees, if incurred, is a first and prior lien against the 

property assessed, superior to all other liens and claims except liens or claims for state, county, 

school district, or municipality ad valorem taxes." Id § 372.018(b). The lien "maybe enforced by 

the governing body in the same manner that an ad valorem tax lien against real property may be 

enforced by the governing body," and "[ d]elinquent installments of the assessment shall incur 

interest, penalties, and attorney's fees in the same manner as delinquent ad valorem taxes." Id. 

You first inquire whether Tax Code section 6.24 authorizes a contract between a municipality 

and a central appraisal district or a local taxing unit to collect special assessments imposed in a 

public improvement district. See Request Letter at 1,3. Section 6.24 is found in the Property Tax 

Code, Texas Tax Code title 1, which applies to local entities authorized to impose ad valorem taxes 

IRequest Letter at 1 (available at http://www.texasattorneygeneral.gov). 

2TEX. Loc. Gov'T CODE ANN. § 372.001 (Vernon 2005). 
The Honorable Jeff Wentworth - Page 2 (GA-0724) 

on property.3 See TEX. TAX CODE ANN. §§ 1.01 (short title), 1.02 (applicability of title 1 to taxing 

units), 1.04(12) (defining "taxing unit" as a political unit of the state authorized to impose ad 

valorem taxes) (Vernon 2008). Section 6.24 of the Tax Code authorizes the governing body ofa 

taxing unit to contract with another taxing unit or with an appraisal district board "to perform duties 

relating to the assessment4 or collection of taxes." Id. § 6.24(a) (footnote added); see also id. 

§ 6.24(b) (procedure for county contracts). Section 6.24, read in its statutory context, relates to the 

assessment and collection of ad valorem taxes. See TEx. GOV'T CODE ANN. § 311.011(a) (Vernon 

2005) (words and phrases shall be read in context). An "appraisal district" appraises property in the 

district "for ad valorem tax purposes of each taxing unit that imposes ad valorem taxes on property 

in the district." TEx. TAX CODE ANN. § 6.01(b) (Vernon 2008). Accordingly, section 6.24 

authorizes contracts to perform duties relating to the assessment or collection of ad valorem property 

taxes. 

A special assessment, such as an assessment within the Act, is imposed under the taxing 

power, but it is not an ad valorem property tax. See City of Wichita Falls v. Williams, 26 S.W.2d 

910,911-13 (Tex. 1930). An ad valorem property tax is imposed throughoutthe taxing jurisdiction 

for the general support of its government, while a special assessment is imposed only upon the 

property that is specially benefitted by the improvement, and its amount is based on the special 

benefits accruing to the property. See id.; Henry v. Kaufman County Dev. Dist. No.1, 150 S. W.3d 

498,504-05 (Tex. App.-Austin 2004, pet. dism'd by agr.); see also City of Houston v. Blackbird, 

394 S.W.2d 159, 162 (Tex. 1965) (amount of assessment for paving improvements cannot exceed 

benefit to property owner). Special assessments are not ad valorem taxes within the Texas 

Constitution. See City of Wichita Falls, 26 S.W.2d at 915; Higgins v. Bordages, 31 S.W. 52, 54-55 

(Tex. 1895). Moreover, "it has been uniformly held that the word taxes, whether used in an act of 

the legislature, or the charter of a company exempting it from taxation, does not embrace such local 

assessments, unless there be something in the statute or charter to indicate such an intention." City 

of Cisco v. Varner, 16 S.W.2d 265,266 (Tex. Comm'n App. 1929,judgm't affd); see Allen v. City 

of Galveston, 51 Tex. 302, 320 (1879). Nothing in section 6.24 indicates that the Legislature 

intended it to encompass special assessments. An assessment imposed under the Act is accordingly 

not a tax within Tax Code section 6.24. Based on the plain language of section 6.24, we conclude 

3"An ad valorem tax is levied against property on its value." State v. Wynne, 133 S. W.2d 951,957 (Tex. 1939). 

4The Legislature has defmed the term "assessment" in the Property Tax Code as "a function described by 

Chapter 26, Tax Code, performed by an employee of a political subdivision or by a person acting on behalf of a political 

subdivision to determine an amount of ad valorem tax for the political subdivision." TEX. Occ. CODE ANN. § 

1151.002(2) (Vernon 2004) ( defining "assessment" for purposes ofthe Property Taxation Professional Certification Act, 

Id. § 1151.001-.253 (Vernon 2004 & Supp. 2008». See also Bexar County v. Connell Leasing Co., 611 S.W.2d 496, 

498 (Tex. Civ. App.-San Antonio 1981, no writ) (defming "assessment" in Texas Constitution article VIII, section 15 

as "the sum that has been ascertained as the apportioned part of the tax to be charged against the particular piece of 

property," and that it "includes the procedure on the part of officials by which the property is listed, valued, and fmally 

the pro rata tax declared"). 
The Honorable Jeff Wentworth - Page 3 (GA-0724) 

that section 6.24 does not authorize contracts between a municipal governing body and another 

taxing unit or an appraisal district board to collect special assessments imposed under the Act. 5 

You also ask whether authority other than Tax Code section 6.24 would permit a central 

appraisal district or a local taxing unit to collect assessments imposed by a municipality on property 

in a public improvement district. See Request Letter at 1,2. Government Code chapter 791, the 

Interlocal Cooperation Act, authorizes a local government to contract with another local government 

"to perform governmental functions and services in accordance with this chapter." TEx. GOy'T 

CODE ANN. § 791.011(a) (Vernon Supp. 2008), see id. §§ 791.001-.033 (Vernon 2004 & Supp. 

2008); Ben Bolt-Palito Blanco Consolo Indep. Sch. Dist. v. Tex. Political Subdivisions Prop.lCas. 

Joint Self Ins. Fund, 212 S.W.3d 320 (Tex. 2006) (addressing self insurance pools authorized by 

chapter 791 and other statutes). A local government includes a "county, municipality, special 

district, junior college district, or other political subdivision of this state or another state." TEX. 

GOy'TCODEANN. § 791.003(4)(A)(Vernon Supp. 2008). The term "[g]overnmental functions and 

services" is defined as "all or part of a function or service" in any of several areas listed in section 

791.003(3). Id. § 791.003(3). The list does not expressly include collecting assessments, and no 

judicial decision or attorney general opinion has considered whether chapter 791 authorizes contracts 

for collecting special assessments. The language of chapter 791 is, however, broad enough to 

include contracts to collect assessments. The statute authorizes contracts for "administrative 

functions," defined as "functions normally associated with the routine operation of government, 

including tax ... collection." Id. § 791.003(1); see also id. § 791.003(1) (defining "administrative 

functions"); see also id. § 791.003(3)(K) (administrative functions are governmental functions). In 

our opinion, the collection of assessments, like the expressly-mentioned tax collection, is a function 

"normally associated with the routine operation of government." Id. § 791.003(1). In addition, the 

statute authorizes local governments to contract for "other governmental functions in which the 

contracting parties are mutually interested." Id. § 791.003(3)(N). This broad category could include 

the collection of special assessments. 

An interlocal contract under chapter 791 may "provide a governmental function or service 

that each party to the contract is authorized to perform individually." Id. § 791.011(c)(2); see Tex. 

Att'y Gen. Op. No. GA-O 150 (2004) at 2 (Interlocal Cooperation Act permits an agreement whereby 

the peace officers of one local government serve as law enforcement officers of another local 

government that has law enforcement authority). Thus, a municipality could not contract with an 

appraisal district board for collection of assessments. We believe, however, that a court would find 

that the Interlocal Cooperation Act authorizes a municipality to contract with another local 

government for collecting special assessments imposed in a public improvement district. The local 

government must also have authority to collect assessments for public improvements. Whether a 

particular local governmental entity has the required authority may be determined by examining the 

applicable law. 

5you also ask if a contract under Tax Code section 6.24 for collection of special assessments would have to be 

approved by the comptroller. See Request Letter at 5. In view of our answer to your fIrst question, we need not address 

this question. 
The Honorable Jeff Wentworth - Page 4 (GA-0724) 

SUMMARY 

A special assessment to finance a public improvement is 

imposed only upon the property that is specially benefitted by the 

improvement, and its amount is based on the special benefits accruing 

to the property. A special assessment is imposed under the taxing 

power, but it is not an ad valorem property tax within the Texas 

Constitution, nor does the term "taxation" in statutes ordinarily 

include special assessments. 

Tax Code section 6.24 authorizes contracts between a 

municipal governing body and another taxing unit or an appraisal 

district board to collect ad valorem taxes, but it does not authorize 

contracts to collect special assessments imposed under the Public 

Improvement District Assessment Act, Local Government Code 

chapter 372, subchapterA. 

Pursuant to the Interlocal Cooperation Act, a municipal 

governing body may contract for the collection of a special 

assessment it imposes in a public improvement district with another 

local governmental entity that is authorized to collect assessments for 

public improvements. 

ANDREW WEBER 

First Assistant Attorney General 

JONATHANK. FRELS 

Deputy Attorney General for Legal Counsel 

NANCY S. FULLER 

Chair, Opinion Committee 

Susan L. Garrison 

Assistant Attorney General, Opinion Committee