The way they work is that developers borrow money by issuing tax-free bonds based on the value of the taxes they will be able to collect. They use the money to build roads, sewers and amenities. The developers collect the taxes and pay the bonds off over a number of years.

Under the Georgia proposal, developers must get county or city approval before forming a district, and the government would get to appoint one person to the board of the improvement district for oversight.

Developers could pass the infrastructure on to the government after completion, as usually happens now with developer-built roads.

Staton said legislators are tinkering with his bill to protect home buyers. He wants to make sure the district boards are subject to state open records laws, that homeowners are protected if the developer goes bankrupt, and that tax rates are capped. The House bill as now written would allow a tax of 15 mills, or $1,500 per year on a $250,000 house.

That would be on top of local government taxes.

"The great thing about this is nobody is forced to do this," Staton said. Local governments would choose whether or not to allow it, and those who live in such a district would choose to do so, knowing they will be liable for the extra taxes.