Special Districts
Many New Subdivisions Have an Extra Tax Line for a MUD or PID
Many new neighborhoods in Collin County have an extra charge on top of regular property taxes. It pays for water lines, roads, and parks built by the developer.
A Municipal Utility District (MUD) is a special district the state allows to build water, wastewater, and drainage systems for new neighborhoods. It sells bonds to pay for that work, then charges homeowners a property tax to pay the bonds back. MUD tax rates vary, but they can add a meaningful amount on top of your city and school taxes. Bond repayment periods can span many years.
A Public Improvement District (PID) works differently. It charges a special annual fee — not a separate tax rate — to pay for things like landscaping, parks, and trails. MUDs and PIDs are both common in fast-growing parts of Collin County, including areas of Prosper, Frisco, Allen, and Princeton. Before you buy a home, check the seller's disclosure for any MUD or PID. Ask what the current annual cost is so there are no surprises.
Source to confirm: CC MUD No. 1 – About