(a) This section applies when:
(1) a municipality annexes for full purposes part of a district that imposes a sales and use tax; and
(2) the annexed area is not removed from the district.
(b) The municipality and the district may, before or after the annexation, agree on an allocation between the municipality and the district of revenue from the sales and use tax imposed in the annexed area.
(c) Under policies and procedures that the comptroller considers reasonable, the comptroller shall pay the amounts agreed to between the municipality and the district.
(d) A municipality that enters into an agreement under this section is not required to provide emergency services in that annexed territory. To the extent of a conflict between this subsection and Section 43.056, Local Government Code, or any other law, this subsection controls.
(e) Section 321.102(f), Tax Code, does not apply if the municipality and the district enter into an agreement under this section.