Name: Special Tax Districts

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Description: The creation of such a special taxing district allows the County to issue low-interest, tax-exempt bonds that are used to finance the infrastructure improvements needed to allow the development to proceed. Taxes or other assessments are levied on the property within the district, the revenues from which are used to pay the debt service on the bonds. Development is, therefore, allowed to proceed, and improvements are built in a timely manner. Only the additional, special tax revenues from the development district are pledged to repayment of the bonds. The County's general tax revenues are not pledged. The construction of improvements funded with development district bonds is required by law to follow the County's usual process for constructing capital improvements, and thus must be included in the Capital Improvements Program. Credit: Mary E. Casciotti- Senior Management and Budget Specialist Department of Finance Montgomery County, MD 101 Monroe Street, 15th floor Rockville, MD 20850 mary.casciotti@montgomerycountymd.gov

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