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A Municipal Utility District is a political subdivision, usually outside of city limits, organized to provide water and sewer facilities for homes using bonds to pay for the facilities. Homeowners then pay a MUD tax to pay off the debt.

A MUDs primary function is to finance, purchase, construct, operate and maintain improvements, facilities and plants necessary for:
(1) The supply and distribution of water
(2) The collection, transportation and treatment of waster water
(3) The control and diversion of storm water.

MUDS are empowered to issue bonds and other forms of indebtedness to purchase or construct these facilities.

 Municipal Utility Districts are also authorized to annex property into the district, serve properties outside of the district, enter into contracts and provide fire protection, policing, waste hauling service and recreational services.

 
NO STATE INCOME TAX IN TEXAS
Texas does not have a state income tax, so the burden to pay for schools, roads and other amenities falls upon the taxpayer. MUD taxes are only one of the entities of assessment that homeowners pay in the greater Houston Area and they differ according to location.

 Below is an example of Tax Rates per $100 for a property in a MUD District assessed at $109,360.

Tax Entity/Collector

Tax Rate

Bonds

Bonds

Estimated Tax

 

Tax Rates

(per $100.00)

Authorized

Issued

(before exemptions)

 

CLEAR CREEK ISD

1.32000000

 

 

$1,443.55

 

HARRIS CO

0.39239000

 

 

$429.12

 

HARRIS CO DPT EDUC

0.00585000

 

 

$6.40

 

HARRIS CO FLOOD CONTRL

0.03106000

 

 

$33.97

 

HARRIS CO HOSPITAL

0.19216000

 

 

$210.15

 

HARRIS CO MUD 55

0.52000000

$44,240,000.00

$44,240,000.00

$568.67

 

PORT OF HOUSTON AUTH

0.01437000

 

 

$15.72

 

Total:

2.47583000

$44,240,000.00

$44,240,000.00

$2,707.57

 

 
Call or email me if you would like more information regarding MUD taxes in the Friendswood, Pearland, League City or Clear Lake area. It will make a difference in your house payment.
Alinda Martin
 

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