“While TAB works constantly to ensure fair and equitable property tax policies, we fully support development of public infrastructure and utilities to meet the demands of the citizens of Texas. We understand that infrastructure is not free and that bonds are often the best and only mechanism to pay for capital improvements, not only for MUDs, but for other forms of local government as well…”
Homebuyers receive and execute TWO notices informing them that the home they are purchasing is in a MUD. The 1st notice is given with the earnest money contract & the 2nd is given at closing.
No other local government in Texas is required to give such notice.
The notice contains the MUD’s current or anticipated tax rate, voted bond authorization and total amount of bonds issued.
The Notice to Purchasers, required by law, ensures that every MUD resident purchases their home with full knowledge of the existence of the MUD, its taxes and bonds.
At closing, documents outlining property taxes paid & owed on the home, which include MUD taxes, are given to the buyer.
The HUD-1 Settlement Statement clearly shows the proration of MUD property taxes between buyer & seller.
In addition to the information that all taxing units are required to post on the Internet as mandated by the Property Tax Reform Act of 2019, districts are required to post on the Internet a host of information including, the names and contact information for the district, its directors and consultants, tax information, meeting agendas and minutes and financial information.
All of these requirements, combined with the MUD regulatory oversight by the TCEQ, laws regarding open meetings, public information, conflicts of interest and financial reporting, create a highly accountable and effective neighborhood government.