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Company Loan Type APR Est. Pmt.

mud and pid tax

Posted on: 12th Jun, 2007 03:50 pm
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
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
Posted on: 12th Jun, 2007 04:35 pm
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.
Posted on: 12th Jun, 2007 05:20 pm
I think this is called Mella Roos in California
Posted on: 09th Oct, 2009 06:22 pm
I live in League Ciy, Texas. I pay my property tax through my escrow account. My question is, I paid separately PID (public improvement district) tax. My question PID is tax deductible or not?
Posted on: 08th Apr, 2010 10:41 am
Hi Barun!

Welcome to forums!

As far as I know the Public Improvement District (PID) tax is not deductible. Some of the deductible real estate taxes include state, local, or foreign taxes on real property. In order to be tax deductible, such taxes should be charged uniformly against all the properties in the jurisdiction. Also, the taxes must be based on the assessed "value" of the property and not on the square footage on which the PID is assessed.

Feel free to ask if you've further queries.

Sussane
Posted on: 08th Apr, 2010 11:45 pm
I have to pay pid taxes in a Desoto, TX subdivision. I am a disable vet and am totally tax exempted by the federal government. I am told by the city of Desoto I still have to pay this tax. Can you tell me if this is correct or should I look into it further.
Posted on: 13th Aug, 2012 10:41 am
You should contact a tax adviser and take his opinion in this regard. He will be able to help you better in this regard.
Posted on: 14th Aug, 2012 04:19 am
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