mud and pid tax

Guest 0.10 Dollars($)

we want to get a bigger house next year, year and 1/2

presently we are in subdivision where we have MUD tax and are looking to get house in a community which has PID tax

just curious to know how it all works

saleslady says that rate was 2.30 & base is lot sq footage

whats difference between the two

blue · Posted: Tue Jun 12, 2007 4:35 pm Post subject:

Hi Jfboylan,

Welcome to Mortgagefit discussion board.

Public Improvement District or PIDs are created to provide limited special services & improvements beyond what is normally provided by the city such as enhanced security, landscaping etc. Property owners in Public Improvement Districts have to pay special property assessments into one kind of fund which is administered by the City.

Municipal Utility District (MUD), is a governmental entity. As a public entity it has powers to exercise certain operations like levy & collection of property taxes, charging for authorized services & adoption and enforcement of rules as felt appropriate for accomplishing purposes for which district is created.

MUD tax rates, like other property tax rates, differ as per property values & debt requirements. Such rates normally decline over time as the MUD is built out & operating and debt service costs are shared by more homeowners.

Do let me know if you have any other questions.

Thanks
Blue

Guest 0.10 Dollars($)

I know a few things about the MUD tax. It refers to taxes assessed on an area for those services. MUD taxes can be quite higher in newer neighborhoods for paying for the initial infrastructure development work.

If you are to move into a new neighborhood which pays certain $ per $100 of valuation then it could be heavy tax burden in comparison to any already established neighborhood where infrastructure is already developed.

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