MUD is an acronym used for Municipal Utility District, and PID is an acronym used for Planned Improved District. These are special purpose taxation vehicles used for financing new or developing areas to fund the infrastructure like water-related infrastructure, utilities, parks, and, etc.,
MUD can be created by a majority of owners or by developers by working with the Texas Commission on Environmental Quality (TCEQ). MUD has an independent board of directors that manage and control the operations with supervision from TCEQ. As the tax burden decreases the MUD rate decline over a period of time. MUD within city limits will burden residents property tax as well as MUD taxes.
PID is another financial vehicle created under Title 12; Chapter 372 of the Texas Public Improvement District Assessment Act. Similar to the MUD, PID can be used to support water-related infrastructure, and in addition to building sidewalks, landscaping, etc., Unlike MUD, PID is governed locally by the city or by the county.
When purchasing a home these MUD and PID will add your monthly PITI. (Principle, Interest, Tax, and Insurance). Ask your real estate agent when purchasing home in newer developing communities.
If you are in the market to buy or sell, contact Poogle (972)4087402, an experienced and knowledgeable real estate.