What Are Taxing Districts?

What Are Taxing Districts?

A taxing district is the area whose boundaries define the taxing jurisdiction for a group of taxing bodies, according to the Galesburg, Illinois assessor. A taxing body, as defined by the assessor, is an organization or government body having the statutory right to fund itself through the property tax system.

The terminology relating to taxing districts varies from state to state. For example, Texas uses the term "taxing units." The Texas comptroller’s website explains that taxing units in Texas, including the county, cities, school districts and special districts, decide how much money they spend each year, and this determines the tax rates they need to set.

Special districts can also have taxing powers. Although no universal definition exists, according to the

Encyclopedia of Chicago, special districts are units of government that are in addition to the traditional units, such as municipalities, townships and counties. As independent governments, special units may have the power to levy taxes and issue bonds, the encyclopedia explains.

In Texas, special tax districts are local government units aside from the county or incorporated municipality that have the power to raise revenue by taxation, special assessment or charges for services, according to the Texas State Historical Association.