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1. What is a Public Improvement District (PID)?

A Public Improvement District is a special district created by a City or County under the authority of Chapter 372 of the Texas Local Code. The statute allows for a city or county to levy a special assessment against properties within the District to pay for improvements to the properties within the District.

2. What are Public Improvement District (PID) Assessments?

PID Assessments are payments made to cover the costs associated with improvements and services in the District. There are 2 types of assessments in The Town of Trophy Club Public Improvement District Number 1 (The Highlands at Trophy Club). 

1. The first type of assessment is a fixed assessment that is allocated to each lot located within the District to pay for improvements that provide a special benefit to the properties within the District. 
2. The second type of assessment is an annual emergency services assessment that pays the District's proportionate share of fire services to the District.

Below is a graphic that was created for 2022/2023 to help illustrate the breakdown of services and costs for the two different assessments within the PID. 

3. What do the Public Improvement District (PID) Assessments pay for?

The fixed assessments levied against properties in the Highlands Public Improvement District (PID) pay for improvements to the properties that include the original: 

• Drainage Improvements
• Entry Features
• Landscaping and Irrigation
• Monuments
• Open Space
• Parks
• Roads
• Trails
• Wastewater Collection Lines
• Water Distribution Lines

4. How are the Assessments calculated?

Fixed assessments are based on size of the lots located within the District. The Annual Emergency Services Assessment is based on the appraised value of the lot and any improvements (just like a property tax).

5. How do residents pay their assessments?

Public Improvement District (PID) Assessments can be paid in full at any time by contacting DTA at 800-969-4382, or through annual installments in conjunction with your annual property taxes. The Town contracts with Denton County for annual collection, so residents may pay their annual PID Assessments along with there regular ad valorem tax payments.

6. How are the lot types determined?

Lot types are based on size:

• Lot Type 1 - lots for single family dwellings with a minimum size of 12,000 square feet
• Lot Type 2 - lots for single family dwellings with a minimum size of 10,000 square feet
• Lot Type 3 - lots for single family dwellings with a minimum size of 8,400 square feet
• Lot Type 4 - lots for single family dwellings with a minimum size of 7,200 square feet
• Lot Type 5 - lots for single family dwellings with a minimum size of 3,000 square feet

7. Can you pay off a PID?

They are more common in some states than others. If your home is in a PID, you will be taking on an extra tax obligation, but this obligation will generally be paid off when the specific infrastructure improvement is paid for. This is generally in 20 to 40 years. A buyer may also pay off the entire bill up front.

8. Is the PID tax deducible?

Here is a link on what the PID tax is for: MunicCap, Inc. Public Finance. Yes, you can deduct the special assessment if it was for maintenance and repairs. According to the IRS: Local benefit taxes are deductible only if they are for maintenance, repair, or interest charges related to those benefits.

9. What is the difference between a PID and a MUD?

The MUD is a political entity that can levy taxes, but a PID is not a political entity and a PID uses assessments to pay off the bonds.