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When land for sale advertises as "Low taxes and no MUD", what does the "no Municipal Utility District (MUD)" actully mean. Is there really a significant difference in taxes vs. city taxes. Thanks for any and all information.
 

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The Woodlands is an example of MUDs. My understanding is that to provide services such as water and sewer, a MUD is formed and bonds are sold. To repay the note on the bonds if you live in the area that is in the MUD, you are taxed to satisfy the note. The up side is that you don't have to drill a well or put in a septic system, but the down side is that the MUD taxes can sometimes be substancial.
 

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Yes, MUD taxes can easily be several thousand dollars (extra) per year which translates to several hundred extra dollars tacked on to your monthly house payment. Several hundred extra bucks a months can easily mean the difference in being able to buy a lot more house for the same amount of money as each $100/month payment incrament is said to be $10k worth of mortgage (ie. $150,000 = $1,500 mortgage payment roughly). The bad thing about MUDS is that many of them are financially insolvent and in a very bad position, thus resulting in municipalities being unwilling to annex them as the surrounding areas grow up. We are growing very rapidly where I live and there are still large neighborhoods in the middle of the city that we refuse to annex because their MUD is like 10 million bucks upside down. They get no city utilities or police services b/c of this. They technically fall under county services. I would avoid a MUD if you can as city utilities are usually cheaper which means you can buy more house.
 

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We purposely looked for a place with no HOA or MUD taxes.

As of this year, I only pay a total of 2.9% taxes/fees on my house.
 

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We purposely looked for a place with no HOA or MUD taxes.

As of this year, I only pay a total of 2.9% taxes/fees on my house.
Cant blame you there. I personally wouldnt live with an HOA breathing down my neck. I see the benefits, but they aint for me. Since I left the comforts of my dads house years ago, I dont need anyone to tell me when to mow my grass. I live in the Old Townsite. Any chance your place is off FM1128?
 
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