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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.
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).
Below is a graphic that was created for 2023/2024 to help illustrate the breakdown of services and costs for the two different assessments within the PID.
The fixed assessments levied against properties in the Highlands Public Improvement District (PID) pay for improvements to the properties that include the original:
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).
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.
Lot types are based on size:
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.
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.
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.