Grayson County officials weigh county assistance district to capture estimated $4 million in uncollected sales tax

Grayson County officials discussed forming a county assistance district (CAD) that would add a local sales tax in unincorporated parts of the county and could return an estimated $4,000,000 a year now being retained by the state.

The proposal, discussed at a county workshop, would require voter approval in the unincorporated areas and faces technical complications where municipal extraterritorial jurisdictions (ETJs) and existing special districts already levy local sales taxes. No formal vote was taken at the workshop.

The issue matters because county leaders said the revenue could finance county services strained by rapid residential growth, including road construction and repair, fire and emergency medical services (EMS) and public safety. Commissioners repeatedly framed the CAD as a way to shift some funding burden away from property taxes and onto consumers who purchase goods in unincorporated areas, including visitors and nonresidents.

"Low estimate is we're losing about $4,000,000 in uncollected sales tax in the unincorporated areas," the Grayson County judge said during opening remarks, describing that figure as "conservative." The judge said the county would seek to place the proposal before voters in November.

Commissioners discussed two main rate…