The Argyle Town Council has called for a special election to consider a proposed Municipal Development District, which could generate sales tax revenue outside the town’s limits.
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. The proposed Argyle MDD boundaries are generally a half-mile beyond the town limits of Argyle and includes the Extra-Territorial Jurisdiction if not otherwise included in an adjacent city or another city’s ETJ, according to a news release from the town of Argyle.
The town currently has a Type B Economic Development Corporation, which imposes a 0.25% sales tax within town limits. The proposed MDD would be able to continue imposing the same sales tax rate but extend the boundaries to include the town’s ETJ, according to the town.
The MDD will be able to perform the same types of projects as are currently allowed by the Type B EDC, such as retail, restaurant, parking, transportation, roads, public parks and other improvements.
Voters within town limits will vote on two propositions regarding the MDD during the May 2 election. For an MDD to be created, residents in both Argyle town limits and the Argyle ETJ must vote to authorize the district. Subject to the passing of this proposition, voters within town limits must then vote to terminate the existing Type B EDC.
If approved by vote in May, the MDD tax would become effective within approximately six months, according to the town.
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