Special Purpose District Financial and Tax Reporting

In 2017, the 85th Legislature passed Senate Bill 625 (SB 625), a transparency bill requiring certain special purpose districts to annually provide records and other information concerning district finances and tax rates to the Comptroller of Public Accounts. SB 625 also requires the Comptroller of Public Accounts to create the Special Purpose District Public Information Database on the Comptroller's Internet website, where information submitted by the districts will be assembled, updated, and made available to the public free of charge. (Texas Local Government Code §203.062; Texas Government Code §403.0241.)

New – In 2019, the 86th Legislature passed House Bill 3001 which removes duplicative reporting requirements by amending Local Government Code §140.008. Starting on September 1, 2019, special purpose districts, as described by Government Code §403.0241(b), that annually submit their Special Purpose District Financial and Tax Report to the Comptroller no longer have to also submit the Local Government Debt Report.

Information submitted by special purpose districts must be transmitted in the form and manner prescribed by the Comptroller. The Comptroller's office has developed an electronic reporting form to enable entities or their third-party representatives to submit the required information in the approved format.

Special Purpose District Public Information Database

As required by Section 403.0241, Government Code, the Comptroller’s office has posted an online database containing financial and tax information from various special purpose districts across the state. The database is updated continuously and provides self-reported information from the districts. Learn more about the Special Purpose District Public Information Database (SPDPID) below.

Online Reporting

All reporting is completed through the Comptroller's eSystems, a secure online portal for a variety of online transactions. If the reported information changes following the first report, entities can edit future reports any time prior to the start of the next reporting period.

New – Recent amended language also states the documents sent to the Comptroller’s office related to this reporting requirement will now need to comply with Texas EIR Accessibility statutes and rules. Due to this change, the Comptroller’s office will no longer accept Excel or PDF formats for reporting their debt information. Reporting entities will now have the choice of manually entering their debt information through the online portal or providing a direct link to the entity’s posted debt material on its website.

Special purpose districts that are classified as a water district under Texas Water Code §49.001 also have the option to physically maintain the required documentation at the district’s main office for inspection by any person. Contact information will be requested for public access.

Refer to Assistance for SPD Financial and Tax Reporting for details.

Reporting Requirements

All special purpose districts (SPDs), defined by §403.0241(b) as political subdivisions of the state with geographic boundaries that define their territorial jurisdiction, meeting certain criteria are required to report their information. Exempt are those political subdivisions defined as municipalities, counties, junior college districts, independent school districts, or political subdivisions with statewide jurisdiction.

SPDs meeting at least one of the following applicability criteria from each category below (1 and 2) are required to annually report their information to the Comptroller for inclusion in the Special Purpose District Public Information Database:

1. The SPD was authorized by the state by a general or special law during the most recent tax year to:
   1. impose an ad valorem tax and/or sales and use tax;
   2. impose an assessment; and/or
   3. charge a fee.
2. During the SPD’s most recent fiscal year it:
   1. had bonds outstanding;
   2. had gross receipts in excess of $250,000; and/or
   3. had cash and temporary investments in excess of $250,000.

To establish a more robust database, the Comptroller encourages all SPDs to provide their general information for inclusion in the public database, whether they meet the criteria above or not.

If an entity is unsure whether it is mandated to comply with these reporting requirements, the Comptroller recommends consulting with a legal or financial professional to make this determination. Agency staff are unable to advise in this regard.

Required Information

• Texas Taxpayer ID number (i.e., the SPD's 11-digit Texas Taxpayer ID)
  Note: If you do not have a Texas Taxpayer ID, please contact our office at 844-519-5676 to receive one.
• The SPD's contact information:
  • Name of the entity
  • The first and last name of each board member
  • The name and job title of any employee of the SPD serving as general manager, executive director, or in another position with comparable duties or functions
  • Physical address of the main office
  • Mailing address, if different
  • County or counties within the SPD's territorial jurisdiction
  • Main telephone number
  • Primary contact email address
  • Internet website address, if applicable
• Third-party contact information, if applicable
  • Firm name
  • Employee name
  • Job title
  • Mailing address
  • Telephone number
  • Email address
• The contact information for the SPD's tax assessor-collector, if applicable
  • Name of representative for the tax assessor-collector
  • Mailing address
  • Telephone number
  • Tax-assessor-collector's entity name
• The contact information for the SPD's utility operator, if applicable
  • Name of representative for the utility operator
  • Company name
  • Mailing address
  • Telephone number
• The sales and use tax rate that the district imposes for the most recent fiscal year, if applicable
• The total amount of bonds authorized by the voters of the SPD that are payable wholly or partly from ad valorem taxes, excluding refunding bonds if refunding bonds were separately authorized and excluding contract revenue bonds
• The aggregate initial principal amount of all bonds issued by the SPD that are payable wholly or partly from ad valorem taxes, excluding refunding bonds and contract revenue bonds
• Whether the SPD is classified as a water district under Texas Water Code §49.001
• In addition to the information set forth above, water districts must report:
  • The ad valorem tax rate imposed for the most recent tax year, if any
  • Financial information required to be reported to the Comptroller under Local Government Code §140.008 (b) or (g), including any revenue obligations
• Non-water districts must also report:
  • The table of ad valorem tax rates for the most recent tax year as described by Tax Code §26.16, in the form required by that section (if the SPD imposes an ad valorem tax)
  • Financial information required to be reported to the Comptroller under Local Government Code §140.008(b), including any revenue obligations

Reporting Deadlines

Special purpose districts are provided a 90-day window to gather and report the required information. The reporting period begins annually on January 1st and reports are due by April 1st.

FAQ's

For other questions regarding this reporting requirement, please email us at transparency@cpa.texas.gov or call 844-519-5676.