6.__Expenditure of revenue, billing and payment schedule.__ Municipalities imposing charges on otherwise tax-exempt entities for direct benefit services provided shall expend the accrued revenues only to fund those municipal services for which the tax-exempt entities are being charged. Bills for the payment of direct benefit service charges must be sent at the same time and in the same manner as property tax bills. A municipality may in its implementing ordinance establish a payment schedule that is annual, semiannual, quarterly or monthly.

7.__Appeals process.__Appeals of valuation or the calculation of the direct benefit service charge are allowed and must be conducted in the same manner provided for appeals by taxable entities in subchapter 8.

8.__Collection of unpaid charges.__Collection of unpaid municipal charges for direct benefit services must be conducted in the same manner as provided in subchapter 9 for the collection of unpaid property taxes, and municipalities and their officials or agents have the same rights and authority conferred by that subchapter.

9.__Implementing ordinances.__A municipality that imposes charges for direct benefit services pursuant to this section may adopt any ordinances necessary to implement the charges and other purposes of this section.

SUMMARY

This bill allows a municipality to charge an entity that is exempt from property tax for "direct benefit services" provided in that municipality, such as: fire and police protection; water and sewer services; trash collection and disposal; and public works department services, including sidewalk and road construction and maintenance. Only a tax- exempt entity that derives at least 50% of its annual revenue from charges such as service fees, rents, rates or tuitions imposed on a client group served by that tax-exempt entity, regardless of the source of