There are two types of districts.   The first is a Municipal Service Taxing Unit (“MSTU”), which provides for the levy of a property tax millage rate, and the second is a Municipal Service Benefit Unit (“MSBU”), which provides for the establishment of a fixed rate assessment.   These districts are created to provide services or improvements within a localized area, most typically a residential subdivision.   Some examples of services and improvements provided through MSTUs and MSBUs are street lighting, retention pond and lake maintenance, common area maintenance, water and wastewater line installation, and subdivision wall construction.

Most new districts are initiated with a citizen or developer request within a particular area of unincorporated Orange County.   After a favorable survey of affected property owners, a public hearing is held.   If approved and adopted by resolution of the Board of County Commissioners, the assessment is placed on the annual real estate tax bill and the service or project is initiated.