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Ex: McKinney ISD, NTX Municipal Water District, Nevada Special Utility District, Hospital District
1. School districts, which provide public education in a designated area
2. Nonschool special districts, which consist of any other special district other than a school district, such
municipal utility districts and hospital districts (electricity, water, sewage)
-Property taxes are the primary source of revenue for special districts, with user fees the second largest. (and user fees assessed based on the value of ones property)
Problems with Special Districts
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-The obscurity of special districts makes them easy to abuse,
especially since they often have the ability to issue public debt that is the obligation of residents who live in the special district.
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