Mt. Zion Business Development District No. 1

What is a Business Development District (BDD)?

A Business Development District (BDD) is a designated area within a community where an additional, locally controlled sales tax is applied to support economic development. The funds generated stay within the district and are used to enhance infrastructure, attract new businesses, and support existing commercial activity.

How Does a BDD Work?

Within the boundaries of the district, a small additional sales tax (commonly up to 1%) is collected on eligible retail purchases. This funding is:

• Restricted in use to improvements within the district
• Locally managed by the municipality
• Reinvested directly into the business area

The goal is to create a self-sustaining funding source that supports growth without impacting property taxes.

Eligible Uses of BDD Funds

BDD revenues can typically be used for a wide range of economic development activities, including:

• Roadway, sidewalk, and utility improvements
• Parking lot construction and upgrades
• Stormwater management and drainage improvements
• Site preparation and land assembly
• Streetscape enhancements (lighting, landscaping, signage)
• Rehabilitation of existing commercial structures

Benefits of a BDD

Supports Local Businesses
Provides funding to improve accessibility, visibility, and overall business conditions.

Encourages Economic Growth
Helps attract new development and investment to underutilized or strategic areas.

Reduces Reliance on Property Taxes
Generates revenue through consumer activity rather than increasing property tax burdens.

Improves Infrastructure
Funds critical improvements that benefit both businesses and the public.

Why Establish a BDD?

Communities establish Business Development Districts to:

• Revitalize commercial corridors
• Promote retail and service expansion
• Address infrastructure needs tied to development
• Create jobs and strengthen the local economy

A BDD is a proactive tool that allows municipalities to partner with the private sector to enhance economic vitality.

District Boundaries & Governance

Each BDD has clearly defined geographic boundaries established by ordinance. The municipality oversees the administration of funds and ensures that expenditures align with state statutes and local development goals.