Housing study meeting begins Municipal Development District talks

Staff Writer

At the recent joint meeting of the City Commission and SEED meeting regarding the Municipal Development District (MDD), much was discussed on the concept of an MDD.
A Municipal Development District is a special. purpose district created for the purpose of generating economic development and growth opportunities within the boundaries of the district.
A Municipal Development District (MDD) sales tax is an optional city sales tax that closely resembles a Type B economic development sales tax. It can be levied within a specified area of the city or its extraterritorial jurisdiction or both.
How an MDD Compare to a 4A or 4B EDC is like this. The nature of an entity such as Type A involves miscellaneous limiting provisions, is a corporation which administers the sales and use tax,Files Articles of Incorporation, Corporation is governed by the Development Corporation Act of 1979 found now in Chapters 501-505 of the Local Gov’t Code (“LGC”) and the Texas Non-Profit Corporation Act (Business Organizations Code formerly Art. 1396-1.01. V.T.C.S), while a B Type involves all cities, is a corporation which administers the sales and use taxes, it files Articles of Incorporation and is basically the same as Type A. An MDD involves all cities, like Type B but where it differs is that it is not a corporation, but a district and political subdivision of the state and the city. It does not file Articles of Incorporation, as it is not a corporation. It is created by Local Government Code, Chapter 377...To read more, please see our print or online edition.