(a) In this section:
(1) "Highway project" means the acquisition, design, construction, improvement, or beautification of a state or local highway, turnpike, or road project.
(2) "Transportation corporation" means a corporation created under Chapter 431, Transportation Code.
(b) A local government may contract with another local government, a state agency, or a transportation corporation to pay jointly all or part of the costs of a highway project, including the cost of an easement or interest in land required for or beneficial to the project.
(c) A local government and a transportation corporation, in accordance with a contract executed under this section, may:
(1) jointly undertake a highway project;
(2) acquire an easement, land, or an interest in land, in or outside a right-of-way of a highway project, as necessary for or beneficial to a highway project; or
(3) adjust utilities for the project.
(d) If a contract under this section provides for payments over a term of years, a local government may levy ad valorem taxes in an amount necessary to make the payments required by the contract as they become due.