The ten Municipal Utility Districts (MUDs) in The Woodlands managed by Woodlands Water recently approved new tax rates for 2025. The nine residential MUDs lowered their tax rate this year by an average of 2.8%. Metro MUD, which is comprised almost entirely of commercial customers, increased their rate by 6.8%. Woodlands Water MUD tax rates are now 86% lower than the average for all MUDs in Montgomery County. You can find your specific MUD tax rate by clicking HERE.
Municipal Utility Districts (MUDs) rely on both water and sewer fees and property taxes to finance water, sewer and drainage projects. You can determine how your water and sewer fees are calculated by referring to the back of your monthly bill or by checking out this “Interactive Guide to Understanding Your Water Bill”.
MUD taxes are calculated by applying a set rate, as determined by your elected MUD Board, to your home’s appraised value. Here’s a short video with more information on how MUD taxes are calculated.
Tax rates vary by MUD because each MUD has a different set of factors to deal with, including the age of their infrastructure. All other factors aside, MUD tax rates will lower as infrastructure ages because the bonds that financed the construction of all those pipes and pumps get paid off over time.
Certainly, our low MUD taxes are to be celebrated. However, because water and sewer infrastructure has a finite life span, components of our aging system will require reinvestment to maintain its quality and reliability. Funds for this renewal effort could come through a combination of higher water & sewer rate rates and/or higher MUD tax rates.
