Why Jacksonville’s MDD Proposal Failed — And What Comes Next

JACKSONVILLE, Texas (TXAN 24) — Jacksonville voters recently rejected the proposal to create a Municipal Development District (MDD), a move that pauses a plan aimed at using local sales tax revenue to fund economic development. The MDD would have allowed the city to collect up to a half-cent in sales tax within its extraterritorial jurisdiction (ETJ), with funds directed toward projects like infrastructure upgrades, commercial recruitment, and downtown revitalization.

While supporters saw the MDD as a strategic tool to stimulate growth and attract business investment, opponents cited concerns over transparency, fiscal responsibility, and a lack of public outreach. Some voters felt unclear about how funds would be spent or which areas would benefit, while others questioned whether the timing was right for a new taxing entity.

The failure of the proposal leaves city leaders with important decisions ahead. Without the MDD, Jacksonville must look to other funding mechanisms or grants to support economic initiatives. However, the conversation sparked by the proposal may open the door to more community input and refined development plans in the future.

TXAN 24 News will continue tracking how the city adjusts its approach in the wake of the vote.