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DFW MUD and PID Taxes, Are They a Factor in How You Chose Where To Buy?

Posted by Mike Askins on Wednesday, January 3rd, 2018 at 9:36am.

What are PID and MUD Taxes?

MUD Taxes, or Municipal Utility District Taxes, and PID Taxes, or Public Improvement District tax are additional assessments above standard property taxation. MUD taxes generally have no expiration date, but as more homes are constructed in MUD districts, MUD taxes can decrease or be eliminated over time. PID taxes can also be paid in full up front, versus prorated year by year during the years the PID is active. PID's can run from 20 to 40 years in duration.

The purpose for these "special assessments" is to fund new infrastruture development when the standard tax base alone is insufficient. The various online Tax Appraisal Districts (links below) will reveal if MUD or PID taxes apply. Many times, communities with PID's or MUD taxes, have slightly lower competitive home pricing to reflect the added tax burden. Some communities eliminate PID or MUD taxation by charging more for their lots. Bottom line, there is an overage cost for new infrastructure in locations that do not have a sufficient tax base to fund development.

View Dallas Fort Worth Property Tax Table

Tax Reform Has Passed with a Property Tax Deduction Maximum of $10,000. Does that make you more or less likely to avoid MUD and PID Communities where property taxes are higher?
Yes, more likely to avoid
No, won't matter
Undecided, I have to see the numbers first
made over here
 
Mike Askins

Mike Askins, Realtor, Owner ARG
Got questions for Realtor Mike? Call me at 214-727-3686 (mobile)

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