INTERIM. Private Property Rights. 3 Trends Changing the Definition of Special District.

• New IRS regulations
  • will make it harder for special districts to borrow money tax-free
  • IRS says special districts are benefitting by a tax rgulations meant for cities, not for special districts
• Special District Growth
  • 39,000 special districts in the U.S.
  • spending more revenue than all cities in the U.S. combined
• Changing the defintion of local government
  • ​IRS standard is any 1 of these 3 makes an entity a municipality:
    • Does it have the power of taxation?
    • Does it have the power of eminent domain?
    • Does it have police power?

Governing | Redefining ‘Special Districts’ Could Have Big Taxing Consequences