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How special districts, legislative shortcuts, and taxing power intersect
Most residents assume that taxing and governing authority is exercised by elected officials — and only after a public vote.
In reality, Texas law allows several legal mechanisms through which private developments can obtain public powers without direct voter approval. These tools are widely used across the state and are often navigated by specialized law firms on behalf of developers.
Many residents don’t learn how these mechanisms work until a proposal appears in their own community.
That learning curve — and how it unfolded in Waller County — is what this page explains.
With the March primary approaching, voters have asked how special Districts, taxing authority, and recent legislative actions relate to representation in House District 85.
Questions Voters Are Asking This Primary (pdf)
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This issue did not begin with a ballot measure.
It began with a legislative proposal in Austin.
In May 2025, House Bill 5685 was introduced by Stan Kitzman, who represents Waller County in the Texas House.
HB 5685 proposed creating a project-specific improvement district tied to the TexasLand USA site. The district would have been granted taxing, borrowing, and self-governance authority for infrastructure associated with a single private development.
Required legal notice for HB 5685 appeared only in the Houston Chronicle, rather than in local Waller County newspapers, which contributed to residents learning of the bill only late in the legislative process.
When the bill became public, the community was blindsided. Residents raised urgent concerns about transparency, precedent, and whether extraordinary public powers were appropriate for a speculative private project. Following public scrutiny, HB 5685 was withdrawn and did not advance.
The withdrawal of HB 5685 did not end the pursuit of special-district authority.
After the bill was pulled, TexasLand USA representatives stated that they intend to pursue creation of a Municipal Management District (MMD) — a form of special district that can exercise taxing and borrowing authority without any voter involvement. This was conveyed during a July 2025 meeting with a small group of Citizens in Defense of Waller County (CDWC) representatives.
It is now understood that an MMD may be pursued either through legislative action or through administrative processes involving the Texas Commission on Environmental Quality, meaning this pathway remains available under state law.
The concern is not that nearby residents would pay these taxes directly.
It is that public taxing and governing authority could be transferred into a private, developer-controlled entity, setting a precedent that invites other large developments to follow the same model.


The County Assistance District (CAD) was not created for TexasLand USA.
Waller County first attempted to establish a CAD in 2022 as a way to claim the final 1% of available local sales-tax authority for county-controlled roads, drainage, and public safety in unincorporated areas. That effort did not pass.
In 2025, the CAD was placed before voters again.
This second attempt occurred against a very different backdrop. The failed effort to pass HB 5685 — and growing awareness of developer-controlled special districts — raised the stakes by clarifying what unclaimed taxing authority could be used for.
On November 4, 2025, voters in unincorporated Waller County rejected the CAD for a second time, by a margin of 684 FOR / 1,726 AGAINST, with approximately 16% turnout.
The vote settled that proposal.
It did not eliminate the underlying issue of who controls the final 1% of local taxing authority.
That final 1% of local sales-tax authority may sound small, but it adds up quickly.
Large destination developments generate enormous volumes of taxable spending — tickets, food, merchandise, lodging, fuel, and related retail. When those purchases occur inside a special district, 1% of every dollar spent is captured automatically, year after year.
Unlike a one-time incentive or grant, sales-tax authority compounds. It grows with attendance, inflation, and expansion — and it can be pledged to support long-term debt.
Over the life of a large development, one penny on the dollar can translate into tens of millions of dollars in taxing and borrowing power.
Large developments require roads, drainage, utilities, and public safety infrastructure.
The question is not whether those investments exist.
It is who controls them.
When taxing authority is claimed through a public, voter-approved mechanism, it is governed by elected officials and used for countywide priorities.
When that same authority is delegated to a developer-controlled district, the revenue can be directed primarily toward infrastructure serving a single private project — without voter approval and with limited public recourse.
Public authority comes with public responsibility.
Once delegated, it is rarely returned.
That distinction shapes communities for decades.
For now, nothing is moving forward — which is why understanding the issue still matters.
These materials remain useful for understanding how public and private taxing authority works in Texas:
Keep Our Penny Local - County Assistance District vs. Municipal Management District explained (pdf)
DownloadHow One Penny Decides $100 Million - Breaks down the math behind the CAD vote (pdf)
DownloadCase Study: Colony Ridge (Liberty County) (pdf)
DownloadCase Study: Fort Bend County CADs (pdf)
DownloadCitizens in Defense of Waller County supports development that is planned, transparent, and accountable to the public.
This experience showed how quickly public authority can be proposed — and how important it is for residents to understand the tools being used before decisions are made.
This page reflects conditions as of December 2025 and will be updated as additional public information becomes available.
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