MUD districts in the Houston area. SKY HIGH TAXES

[bu2]

Without MUDs, house prices would be much higher up front. Fewer people could afford homes.

And if you get the county involved in providing city services, you get the massive corruption and dysfunction you have in Georgia where counties and cities start suing each other, both using your tax dollars.

[usc619]

Originally Posted by LocalPlanner

PIDs are created by cities, so in North Texas you pay city taxes and PID assessments.

There's not that many in-city MUDs in the Houston area. Developers are aware of how the extra-high taxes could hurt marketability.

You have them in Katy, Pearland, Mo city, Sugarland, Houston,...I would have to disagree.

Here's an example from Katy (Houston area)

Green Meadows
KATY CITY OF: 0.4867 %
B-K DRAINAGE DIST: 0.0720 %
WALLER COUNTY: 0.6540 %
WALLER COUNTY FM: 0.0329 %
KATY ISD: 1.5166 %
HARRIS WALLER MUD #2: 0.9500 %
Total Tax Rate: 3.7122 %

Here's an example from Frisco (DFW)

Hollyhock
CITY OF FRISCO: 0.4466 %
DENTON COUNTY: 0.2256 %
FRISCO ISD: 1.4400 %
Total Tax Rate: 2.1122 %

Both homes are similar and in the same price range. Having served on a MUD board, I would say it's a legal racket set up by the developers and attorneys. The running joke is "It's going to be paid off" lol.

My question again is how can DFW cities do it without PIDs and MUDs and we can't?

[fnh]

Our total Houston property tax rate, inside the beltway and yes including a MUD tax, is nominally 2.65%.* For comparison, I looked up a friend's home in 77019 (no MUD, central Houston) and their total tax rate is 2.42%. Not a large difference. I wouldn't advise people to avoid neighborhoods with MUDs as a rule. It depends, like everything.

*With the CFISD Homestead Exemption, our effective tax rate falls to 2.11%. Honestly it's less than I thought. I understand CFISD has a higher homestead exemption than other area ISDs, though.

[jd433]

Yes, I have noticed this too. Taxes are lower in North Texas I have never seen a house with more than 3% tax burden in North Texas. Actually I only see this in the Houston area. Why is this? Why are the taxes o high around here? I guess it is better to buy an older house and remodel it. The older houses are probably closer to town anyway

Originally Posted by usc619

You have them in Katy, Pearland, Mo city, Sugarland, Houston,...I would have to disagree.

Here's an example from Katy (Houston area)

Green Meadows
KATY CITY OF: 0.4867 %
B-K DRAINAGE DIST: 0.0720 %
WALLER COUNTY: 0.6540 %
WALLER COUNTY FM: 0.0329 %
KATY ISD: 1.5166 %
HARRIS WALLER MUD #2: 0.9500 %
Total Tax Rate: 3.7122 %

Here's an example from Frisco (DFW)

Hollyhock
CITY OF FRISCO: 0.4466 %
DENTON COUNTY: 0.2256 %
FRISCO ISD: 1.4400 %
Total Tax Rate: 2.1122 %

Both homes are similar and in the same price range. Having served on a MUD board, I would say it's a legal racket set up by the developers and attorneys. The running joke is "It's going to be paid off" lol.

My question again is how can DFW cities do it without PIDs and MUDs and we can't?

[LocalPlanner]

Originally Posted by usc619

You have them in Katy, Pearland, Mo city, Sugarland, Houston,...I would have to disagree.

Here's an example from Katy (Houston area)

Green Meadows
KATY CITY OF: 0.4867 %
B-K DRAINAGE DIST: 0.0720 %
WALLER COUNTY: 0.6540 %
WALLER COUNTY FM: 0.0329 %
KATY ISD: 1.5166 %
HARRIS WALLER MUD #2: 0.9500 %
Total Tax Rate: 3.7122 %

Here's an example from Frisco (DFW)

Hollyhock
CITY OF FRISCO: 0.4466 %
DENTON COUNTY: 0.2256 %
FRISCO ISD: 1.4400 %
Total Tax Rate: 2.1122 %

Both homes are similar and in the same price range. Having served on a MUD board, I would say it's a legal racket set up by the developers and attorneys. The running joke is "It's going to be paid off" lol.

My question again is how can DFW cities do it without PIDs and MUDs and we can't?

DFW cities do use PIDs. Those are eventually paid off once the developer is fully reimbursed and debt is retired. Are you sure this Hollyhock area doesn't have a PID? It's not technically a tax, so it may not show up on appraisal district records, though of course the homeowner will still consider it one anyway.

Without a MUD or PID, if substantial water / sewer / drainage infrastructure is still required, either the developer can charge more for the lots and homes up front (reduces affordability in that regard), or the rest of the city's property owners can chip in to fund it. There's also TIRZs, which can also do developer remibursements for infrastructure.

[usc619]

Originally Posted by LocalPlanner

DFW cities do use PIDs. Those are eventually paid off once the developer is fully reimbursed and debt is retired. Are you sure this Hollyhock area doesn't have a PID? It's not technically a tax, so it may not show up on appraisal district records, though of course the homeowner will still consider it one anyway.

Without a MUD or PID, if substantial water / sewer / drainage infrastructure is still required, either the developer can charge more for the lots and homes up front (reduces affordability in that regard), or the rest of the city's property owners can chip in to fund it. There's also TIRZs, which can also do developer remibursements for infrastructure.

I’m not sure about the PID, from my understanding the city takes on the infrastructure.

[crone]

Originally Posted by usc619

The thing about MUD taxes in the Houston region is how cities are able to get away with slapping a MUD within the city limits. Cities in the DFW region do not use MUD taxes and the infrastructure seem to be superior than ours. I really don’t see why the cities down here couldn’t do the same. I do agree, MUD is pretty much a racket in these parts.

The trouble is there are no cities in unincorporated Harris County Texas. Take out all the incorporated areas and you'd have left over population of the 5th largest city n the country.

With no system for providing water and sewer for new construction. The county won't put in the streets. They may extend an existing county road for certain consideration. Or in some cases even put one side of a bridge over Cypress Creek so development can happen.

But MUDS are certainly a lifetime employment contract for the lawyer, accountant and engineering firms.

[houston-nomad]

If people don't like MUDs, can't they just buy in an older area? Seems like it's just the cost of doing business. You want to pave a prairie so you can have a new house with a water park and a Cinema Brew House nearby, you have to pay for it.