Sanger council calls May 2 special elections to create municipal development district, transfer half‑cent sales tax
Loading...
Summary
The Sanger City Council unanimously approved two related ordinances to put a joint proposition on the May 2, 2026 ballot: to abolish the current Type A economic development sales tax and to create a municipal development district (MDD) that would capture a one‑half of one percent sales tax within the city and its extraterritorial jurisdiction, contingent on each other.
The Sanger City Council unanimously approved two related ordinances on Jan. 5 to place a joint proposition before voters on May 2, 2026 that would create a municipal development district and transfer the existing Type A economic development sales tax to that district.
City staff told council the ballot language would ask voters whether to abolish the 0.5 percent sales and use tax currently collected for the Sanger Industrial Development Corporation (Type A) contingent on establishing an MDD that would levy the same one‑half of one percent rate within the city's corporate limits and extraterritorial jurisdiction (ETJ). Staff said the change would not add a new tax on residents but would redirect the current revenue stream to the MDD if the MDD is approved by voters.
Staff said the special elections would be presented as two related ballot propositions to ensure a clear delineation of voters in the city and in the ETJ while allowing aggregated results to determine creation and tax transfer. The city manager’s office and communications staff will prepare factual materials for the public and distribute information via the city website, advertisements in the Denton Chronicle and council‑produced videos prior to the election, staff said.
Council discussed voting thresholds and was told a simple majority is required for approval. Staff described the MDD structure as providing additional authority and structure for economic development and infrastructure projects—comparing the change to having expanded EDC capabilities—and said some projects previously supported by Type B funds (for example, Porter Park) illustrate how local development boards can contribute to infrastructure.
Councilmembers voiced the need for clear public outreach so voters in the ETJ and city limits receive consistent information. The council made the motions and voted to approve ordinance 010326 (calling the citywide joint ballot proposition) and ordinance 010426 (calling the ETJ proposition) without objection.
Next steps: city staff will finalize ballot language and begin the public‑information process ahead of the May 2 special election.
