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Municipal Development Districts

Chapter 377 of the Local Government Code authorizes cities to hold an election in all or part of a city, including its extra territorial jurisdiction, to create a municipal development district and to adopt a sales tax to fund it.

The district could undertake a variety of projects including a convention center, civic center, auditorium and other projects eligible under Tex. Rev. Civ. St. art. 5190.6 Sec. 4B(a). (Chapter 377, Local Government Code).

Sales Tax Options: one-eighth, one-fourth, three-eighths or one-half of 1 percent



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