[ Click here to return to list of articles ] League City PID Tax Real Estate Development TaxJanuary 28, 2007 There has been an increase in newly developed subdivisions in League City over the last couple of years. In a few of these communities there is a PID Tax that is assessed in addition to your normal yearly property taxes. PID stands for Public Improvement District and is created by the city to typically help developers build Master Planned Communities. The purpose of these districts is to make available water, distribution and waster water collection lines, storm water drainage facilities, landscaping, paving, fencing, engineering, signage, legal, and administrative services to the property owners within the district. You may be wondering why some communities have this League City PID tax and others don’t. This is a newer tax which means you will not find this tax applied on older established subdivisions, but it is a growing trend on newer master planned communities. This tax can be paid off up front when the home is purchased or paid out on a yearly basis for a term of 15-20 years set by The City of League City. With the growing cost of materials, engineering, labor, flood control, insurance, and advertising developers are looking for ways to keep their lot prices at reasonable levels. Builders then benefit because they can build and market their homes at more reasonable prices, selling out communities much faster. There is much debate on whether this method of developing is really a benefit to the buyer due to the fact that 20,000 to 30,000 dollars will be paid over the average 20 year taxable term. This can eat away at some of the appreciation that most people are planning on enjoying for investing or retirement. On the other hand, many buyers are ok with paying the tax because it has given the developer the ability to build grand communities, some having country clubs, golf courses, and beautiful pool & common areas. Ryson Real Estate can assist you further with pros and cons on the League City PID Tax and help find the right subdivision for you! For more information, contact us now! [ Click here to return to list of articles ]   Bookmark this website!

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