§ 22-29-407 — Disposition of assets

(a) Any surplus funds remaining to the credit of the
district, after payment of the indebtedness of the district,
shall be transferred to the county treasurer. If the assets of
the district are insufficient to pay the indebtedness, the board
of trustees shall levy taxes, within the limits of the authority
of the district, for the liquidation of the indebtedness.
(b) Notwithstanding subsection (a) of this section, if the
property of a district is located within the corporate limits of
a city, the property shall, upon dissolution of the district,
vest in the city in which located and the property of the
district lying outside the corporate limits of any city shall
vest in the county until the formation of a city embracing the
territory, at which time it shall vest in the city.
(c) In each year that the county receives surplus funds to
the credit of the district under subsection (a) of this section,
any funds in the account of the district on June 30, in excess
of six thousand dollars ($6,000.00) retained by the county for
administration, shall be certified to the county assessor and
shall be disposed of as provided under one (1) of the following
procedures, as selected by the county assessor:
(i) The funds may be offset against that portion of
the levies of taxing units levied against the property values of
property within the dissolved district. If the funds are offset
as provided under this paragraph, the funds shall be distributed
to each taxing unit in the amount of that taxing unit's offset;
(ii) The amount may be credited to each property
appearing on the tax roll for the year for which the credit
applies within the dissolved district on the basis of current
assessed value. If the surplus funds are distributed under this
paragraph, the surplus funds shall be deposited in the
unsegregated tax collections account established and distributed
in the same manner as other funds in that account.