Creation. The commissioners court may call an election on creating a district. More than one district may be created in a county, and a district may consist of noncontiguous tracts (387.003(a)).
Who decides. The election is held within the proposed district’s boundaries. The district is created if a majority of the votes received favor it (387.003(b), (d) and (e)).
Status. A district is a political subdivision of the state (387.004).
Governing body. The commissioners court either serves as the governing body or appoints one. An appointed board has five directors serving staggered two-year terms. Members are not paid but may be reimbursed for actual and necessary expenses (387.005).
What a district may do
A district may perform the following functions in the district (387.003(a-1)):
“the construction, maintenance, or improvement of roads or highways;”
“the provision of law enforcement and detention services;”
“the maintenance or improvement of libraries, museums, parks, or other recreational facilities;”
“the provision of services that benefit the public health or welfare, including the provision of firefighting and fire prevention services; or”
“the promotion of economic development and tourism.”
A district may also accept grants or loans, acquire and dispose of property, employ personnel, adopt rules, contract with others to carry out its functions, and make agreements with cities, including agreements about sales and use taxes (387.006(a) and (b)).
How the sales and use tax works
A district may impose a sales and use tax only if it is approved at the election that creates the district (387.007(a)).
The rate must be in increments of one-eighth of one percent (387.009).
A district may not adopt a tax that would raise the combined rate of all local sales and use taxes above the Tax Code maximum of 2% in any location in the district (387.007(b); Tax Code 321.101 and 323.101).
The tax applies to sales at retail of taxable items in the district, with a use tax at the same rate (387.011).
The Texas Comptroller administers and collects the tax under Tax Code Chapter 323, together with the state sales tax (387.008; Tax Code 323.301).
A new tax takes effect on the first day of the first calendar quarter after the end of the first full quarter after the Comptroller receives the district’s order (387.012).
What a district may not do
“A district may not levy an ad valorem tax.”
Texas Local Government Code 387.006(c)
An ad valorem tax is a tax based on the value of property, such as a property tax. A district also may not raise its sales and use tax above the rate voters approved without another election in the district (387.010(a)(3)).
Changing the rate or ending a district
A district may lower or repeal its tax by order without an election, but not below an amount pledged to pay district debt or contractual obligations (387.010(a)(1)).
It may raise the rate by order up to the rate approved at the election (387.010(a)(2)).
The commissioners court may dissolve a district after a public hearing if it votes unanimously that dissolution is in the best interests of the district, the county and the residents and landowners, and the district has no outstanding bonds payable from its revenue (387.013).
The three Waller County proposals
On August 5, 2026, the Commissioners Court ordered elections on creating Waller County Assistance District No. 1, No. 2 and No. 3. Each order sets a rate of one percent (1%) and says:
the district’s tax will apply only in areas within its boundaries where the current local sales and use tax is 1% or less;
the district does not include territory within the corporate limits or extraterritorial jurisdiction of a city; and
the boundaries are shown on the map attached as Exhibit A, with a copy available at the County Engineer’s Office and on file with the County Clerk.
Proposition A
Waller County Assistance District No. 1
On ballot styles for voting precincts 314 and 315.
In Texas, “CAD” often refers to a county’s appraisal district. A county assistance district is a different kind of district. It does not appraise property or set property values.
