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What is the difference between PID taxes vs. MUD taxes in developments in Texas?

Aug6

PID vs. MUD has been coming up a lot lately from my clients.

In rural area developments in Texas like Mustang Lakes and Lilyana, new buyers will hear the terms PID and MUD.

Mustang Lakes in Celina.

“The purpose for these “special assessments” is to fund new infrastructure to the development when the standard tax base alone is insufficient.”

MUD Taxes, or Municipal Utility District assessments, and PID Taxes, or Public Improvement District assessments are above the standard property taxation.

MUD taxes have no expiration date! They will stay with the Home from one owner to the next. As more homes are constructed in MUD districts, MUD taxes can decrease or be eliminated over time. But that rarely happens.

PIDs, unlike the tax rates for MUDs, are fixed once the bonds are sold.  This means a homeowner will know the annual assessment bill at closing.  PID assessments can be paid in full up front, versus prorating year by year during the years the PID is active. PID’s have a set time and can run out on a specific date.

Mustang Lakes and Lilyana, both are communities with PID assessments or MUD taxes, have slightly lower home pricing to reflect the added tax burden. Some developments eliminate PIDs and MUDs all together by adding the expense on to their lots.

At the rate the Prosper-Celina area is growing, there is an overage cost for new infrastructure that does not have a sufficient tax base to fund development.

Currently there are more than 900 municipal utility districts in Texas. They are not uncommon and also should not be a reason for buyers to choose a different community just because of them. New home buyers just need to be informed and educated about it.

There is one advantage for these taxes strangely. Both MUD taxes and PID assessments are tax deductible! So in a way, they really don’t affect your bottom line.

“For more on the newest developments in Frisco, Prosper or Celina like Mustang Lakes and Lilyana, text or call Brad Holden today at (469)733-2723.”

BRAD HOLDEN – HOLDEN NEW HOMES – LICENSED TEXAS REAL ESTATE BROKER

Mustang Lakes in Prosper ISD is more like a Resort!

May23

Mustang Lakes sits on close to 700 acres on a site where thoroughbred horses were bred, raised and trained. Owned by a former city of Dallas mayor, it was known as Twin Eagles Farms and many of the horses went on to win significant purses at races all around the country.

But as of today, there are 9 Luxury Builders currently building homes ranging from the $300’s up to more than $2 million. The builders are Highland Homes, Britton Homes, Coventry Homes, Dave R. Williams Homes, David Weekley Homes, Drees Homes , K Hovnanian Homes and Sharif and Munir.

From a location standpoint, Mustang Lakes is conveniently located on the Prosper/McKinney border and only 3 miles North of Hwy 380.

10 minute drive to the Dallas North Tollroad and this makes Mustang Lakes perfectly positioned away from the hustle and bustle and able to live in rolling hills and lakes.

The developer is Cambridge Communities. Mustang Lakes will be number 7 for them in DFW. Other notable communities they have developed are Westridge and Creekside. They do put a tremendous amount of thinking about usability to make sure the community is able to sustain for a long time.

The pools are stunning and laid out very well. They have a 20-acre Central Park with trails, mature trees, a lake, a play park and an island. This is not just an amenity center, it’s “The Club at Mustang Lakes!” See below the stunning pics of the entry, meeting rooms and state-of-the-art workout facility!

Residents can use the Club everyday and you can even rent the rooms out for special parties etc.

Mustang Lakes calls itself a new kind of Country Club. They also say that instead of a golf course (which could easily be done) but they wanted to give residents over 60 acres of open green space for everyone to enjoy!

“This includes 8 Lakes with waterfalls and fountains, nearly 10 miles of hike and bike trails along enhanced greenbelts and an island!”

I forgot to mention the Club at Mustang Lakes is over 12,000 square feet inside with extensive outdoor verandas and courtyards, interior lounges, meeting rooms, party areas, a kitchen and the state-of-the-art fitness center overlooking the pool and a lake.

Of the many models, Highland Homes model the 267 caught my eye, so I took a peek in.

In Mustang Lakes, Highland Homes builds on the larger 74 foot wide and 86 foot wide homesites.

The 267 plan immediately took my brain to the 269 model at Lawler Park which was the model. The layout is absolutely perfect!

The two main differences I saw between the two layouts was this one was not so high soaring and grandiose and the price was WAY much better!

This plan in Frisco would cost you around $800,000 but here, with their incentives and my discount you would be closer to under $600,000!! That’s a deal!

Mustang Lakes is definitely a very unique new development in its infancy stages which is always a great time to get in for the lowest prices and availability of Prime Lots!

“If you are interested in learning more about Mustang Lakes or any of the luxury builders text me today at (469)733-2723. And don’t forget to ask me how I can save you thousands on any new Home in the state of Texas!”

BRAD HOLDEN – HOLDEN NEW HOMES – LICENSED TEXAS REAL ESTATE BROKER