Mud (Houston, Plano, McKinney: home sales, homebuyer, school district)

[usc619]

Originally Posted by theking_z

So, how do you figure out about when you MUD tax should end? I am in Harris-FB MUD 5 and I know that my subdivision is about 12 years or so old. Should I be able to see the light at the end of the tunnel anytime soon?

You will pretty much always have a operating budget, but if the residents are pro active in taking up the board seats, watch the expenses(budget), and don't get cozy with the vendors/accountant/attorneys... That would be a start.

[curbur]

I have no evidence to back up this claim, but I've heard in some newer mpc's, certain homes actually fall under two MUD districts, and have to pay on both of them. I would imagine, or hope, if this is true that they only pay a percentage portion of each, as having to pay the full price each year on both seems wrong.

[usc619]

Originally Posted by curbur

I have no evidence to back up this claim, but I've heard in some newer mpc's, certain homes actually fall under two MUD districts, and have to pay on both of them. I would imagine, or hope, if this is true that they only pay a percentage portion of each, as having to pay the full price each year on both seems wrong.

I doubt that is the case, Cinco for an example have several MUDs, you will only pat into the one your home falls into.

[curbur]

Originally Posted by usc619

I doubt that is the case, Cinco for an example have several MUDs, you will only pat into the one your home falls into.

I heard a rumor that one street in a subdivision was accidentally zoned and set up in a way where they receive services from both though. It's in Bridgeland if you wanted further clarification. Again, perhaps it's impossible and I really don't know, it certainly seems outrageous to me, but that's what I heard.

[crone]

All of the subdivision within the Houston ETJ had to go through the CoH Planning department and be in compliance with their regulations.

The plan was that the CoH would annex the MUDs and their subdivisions when they were about 3/4 built out. The city would absorb the MUD debt.

Problems arose when people figured out that the city could start taxing 2 years before they had to provide any services. IMO, that was not so much a deal killer because most of these communities only had a volunteer fire department, slim to none HCSO, no EMT's at all. Folks did not want their taxes to go up. They also forgot that their MUD taxes would have gone away. They now have so many special purpose districts plus their MUD taxes. My house and my kids house in the Heights had the same appraisal. His taxes were much less than mine w/ over 65 exemption.

Some of those MPC have MUDs and PUDs. Somebody has to pay for all that open space and water parks, etc.

[cheryjohns]

Originally Posted by curbur

I have no evidence to back up this claim, but I've heard in some newer mpc's, certain homes actually fall under two MUD districts, and have to pay on both of them. I would imagine, or hope, if this is true that they only pay a percentage portion of each, as having to pay the full price each year on both seems wrong.

That is true. Whenever I noticed it, I would ask the title companies, builders, etc. why - but no one knew. I then noticed that it took place only in the communities that had the extra water features - the fountains, manmade lakes, etc. I assume that when you move into one of those communities, they have two different systems for it - or at lease bill the taxes that way.

Your tax rate is your tax rate. For example, in Bridgeland you have a total of $1.50 MUD tax - $1 goes to one MUD and 50 cents to the other.

[curbur]

Ah, so they just split your money that you give. That actually makes sense, and is the most reasonable explanation I've heard. Thanks for clearing that up.

[newtopearland]

Hi Friends,

I'm late to the party, but had a MUD question. Also, I'm new to Texas and MUD taxes.

My MUD (Brazoria County 19) falls inside of the Pearland city limits and the 30-40 houses in our part of the development (not the whole development) are paying City of Pearland AND MUD 19 taxes. My tax rate is 3.33% right now.

I've done a bunch of research and it looks like we're one of the only developments with this problem. Most everyone else is around 2.5-2.8% property tax with EITHER Pearland OR MUD taxes.

Am I being screwed?

[usc619]

The reason I didn't buy into Woodcreek Reserves or Falls of Green Meadow within the city of Katy is because they still have a MUD tax. So in short, anyone living in a city limit and still paying City & MUD taxes is getting screwed.

If you were to buy a house in the cities of Plano, Frisco, Allen, Dallas, Denton, McKinney, etc..... you will have a overall tax rate of 2.2 (avg) due to the city picking up the water.

Here in the Houston area (City limits) just about all new developments get a MUD tax added to it bringing your overall tax rate 3.4(avg), relieving the city of any responsibility of your water while you keep paying into City taxes & sales taxes. It's a Win/Win for the City, Developers, and MUD attorneys (Racket!)

When I would attend the AWBD conferences I've always wondered why most of the MUD in Texas were located in and around Houston and very few around DFW area.

[jasonamd]

MUD taxes mainly cover water distribution, sewer and storm water drainage. City taxes cover everything it takes to run the city...police, fire, roads, etc. So yes, if you are in a MUD you will still pay city taxes if you are within city limits.