Municipal Utility District (MUD)
A Texas special district that finances and operates water, sewer, drainage, and similar utilities, often by levying its own property tax on the homes inside it.
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What does Municipal Utility District (MUD) mean on the Texas real estate exam?
Answer: A Texas special district that finances and operates water, sewer, drainage, and similar utilities, often by levying its own property tax on the homes inside it.
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Municipal Utility District (MUD) definition
A municipal utility district, or MUD, is a special-purpose political subdivision in Texas that provides utilities such as water, wastewater, and drainage, commonly in newly developed areas outside existing city services. A MUD can issue bonds for infrastructure and levy a property tax on the parcels within its boundaries to repay that debt and fund operations.
A MUD is a separate taxing unit, so its rate is combined with the other taxing-unit rates that apply to the parcel. The statutory purchaser notice applies when the conditions in Texas Water Code Section 49.452 are met.
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Special Topics (Texas) (5 of 40 Texas State Law)
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