The progress continues when it comes to reducing property taxes in the state of Texas, but with that progress comes the seemingly constant realization that there's even more to do. This appears to be the case when it comes to special-purpose districts.
Senator Paul Bettencourt, who chairs the Local Government Committee in the Texas Senate, explained what these special-purpose districts are, saying, "Emergency services districts, Municipal Utility Districts (MUDs), they do water services, they also do roads—I could go on forever; there's a huge list."
He went on to say that the sheer number of these districts in Texas has risen quickly, primarily due to shifts in the municipal annexation laws. He said, "In Texas, we stopped forced annexations last decade, so that's why we're more MUD-based than we used to be."
Essentially, rather than voting to be annexed into major cities and townships across the state, more Texans are simply staying unincorporated and relying on special-purpose districts for their government services.
Bettencourt also pointed out that with other taxes—like those imposed by school districts and city and county governments—falling as a result of action from the legislature, the amount that special purpose districts contribute to the total tax bill has increased.