Houston
Sponsored by

MUD extortion?

3,305 Views | 19 Replies | Last: 8 yr ago by Zobel
MouthBQ98
How long do you want to ignore this user?
AG
The city of houston really extracts (extorts) 70 million a year out of non-incorporated MUD districts who agree to pay to avoid incorporation into Houston? That money definitely doesn't get spent outside houston, but it all comes from outside houston. Sort of a taxation without representation by proxy, eh?
CrossBowAg99
How long do you want to ignore this user?
AG
Ain't Texas great
Chuck Gay
How long do you want to ignore this user?
AG
The MUD out in Fairfield where the outlet mall is on 290 made a deal with the City of Houston that involved raising the sales tax from 7.25% to 8.25%. It has been a while since I heard the story, so I don't remember all the details but I remember it being very shady. Every time I drive by it, I think how pathetic it is that the people who have all the new activity and traffic by their homes are not getting the benefit of all the new tax dollars being raised at the front of their community. Maybe someone knows the details because I don't remember them all.
The Original AG 76
How long do you want to ignore this user?
AG
To make a VERY long and complicated story short.....
Whats happening up in Fairfield and on a lot of FM1960 is a scheme where the locals have VOTED ( usually a .5% turnout on an obscure stealth election kinda like school boards/bonds) to allow the COH to collect sales tax in their unincorporated area in exchange for a promise NOT to annex...........................
SEE EXTORTION or BRIBE
What most don't understand, and the COH never tells anyone, is that any further annexation by the COH of predominant WHITE hoods will come under all sorts of DOJ review and hassles. It is likely that damn near ALL of the COH attempts to grab hoods like Fairfield or Copperfield etc would be stopped by the fed overlords. We stopped one of these tax districts down on HWY 6 near Copperfield and the COH tucked their slimy tails and went away.
Ags #1
How long do you want to ignore this user?
AG
The ITLers thank you for your tax money. Keep it coming.
Chuck Gay
How long do you want to ignore this user?
AG
I'm not in the Fairfield MUD, but do recall a vote a few years ago in mine that was on the same day as a larger county / state election. I noticed that the MUD election was not on my ballot where I vote at a school. I later found out that to vote on the MUD issue you had to go to a separate location where the MUD issue was the only one on the ballot. So at the school there where literally 100 items on the ballot and then the single MUD item was at a location by itself. If there was some minority's angle to the MUD election, the DOJ would be all over it.
IrishTxAggie
How long do you want to ignore this user?
AG
Sure wish they'd put that money towards the roads!!!
Post removed:
by user
88jrt06
How long do you want to ignore this user?
AG
quote:
To make a VERY long and complicated story short.....
Whats happening up in Fairfield and on a lot of FM1960 is a scheme where the locals have VOTED ( usually a .5% turnout on an obscure stealth election kinda like school boards/bonds) to allow the COH to collect sales tax in their unincorporated area in exchange for a promise NOT to annex...........................
SEE BRIBE!!!!
Why do y'all allow your locals to screw you?
Doesn't sound like a COH problem...The Tine's annexation policies are ancient and well-known (though, as noted, subject to unwanted Federal oversight).
Chuck Gay
How long do you want to ignore this user?
AG
The problem is literally 98% of the people who could vote don't even know there is an election. There is no media to speak of (tv or print). People aren't aware of what is going on and no one is held accountable after this because no one knew about it in the first place.. I don't understand why there are no other groups that make people aware of things like this. Same with our school districts. If it is happening in HISD, it gets discussed and addressed. If it happens OTL, it gets hidden and buried.
88jrt06
How long do you want to ignore this user?
AG
Fair point.
RebelE91
How long do you want to ignore this user?
AG
These are called Special Purpose Annexations and the City will share a half cent of the sales tax with the local entity. Whether it's a MUD emergency services district, etc. That can be a significant source of revenue for the local entity, and they jump at the opportunity to have those agreements with the City.
malenurse
How long do you want to ignore this user?
AG
Rebel is correct. The limited annexation is a win-win for a MUD. They share in the additional tax revenues, and get a guarantee of non-annexation. You people should check your facts before ranting.
Chuck Gay
How long do you want to ignore this user?
AG
A 1% increase in your sales tax is a win-win for the people of the MUD? And then to top it off, half of the increase is going to an entity totally unrelated to you.
JJxvi
How long do you want to ignore this user?
AG
There is no MUD of significance that is "unrelated" to the COH.
ScottBowen
How long do you want to ignore this user?
AG
Christ, what a disaster. Houston needs to be broken up into a dozen smaller cities.
AggieKig
How long do you want to ignore this user?
Doesn't the MUD have a choice on whether or not it gets annexed? I'm not that familiar with local politics/laws.
Zobel
How long do you want to ignore this user?
AG
quote:
City of Houston doesn't even want to annex most MUDs. MUDs have lots of debt that the city has to assume if they annex. It doesn't make any financial sense to annex a MUD which has a tax rate higher than the city tax rate, because it's a net negative to their coffers.

So unless you're a very mature MUD with a sub 0.7% tax rate, you aren't at much risk anyway.
That's what I assumed, but I don't think that's true.

The MUD I live in was annexed by the City of Pearland, and I don't believe Pearland assumed the debt. I pay all of the city taxes as well as the MUD, and an extra monthly fee on my water bill to boot.
RebelE91
How long do you want to ignore this user?
AG
^
^
Sounds like you live in an "in-city" MUD. If a MUD is created inside the city limits, residents get the pleasure of paying both a MUD and a city property tax. If a MUD is created outside the city limits and is later annexed into the city, the MUD is dissolved and the City assumes all of the MUD's assets and liabilities. In that case the residents will only pay the city tax.

And yes MUDs have to agree to the special purpose annexations, but not the full annexations (where the MUD is dissolved).
BBRex
How long do you want to ignore this user?
AG
I used to work at the Chronicle, and they (at least used to) write multiple stories to put in the paper, write editorials and put recommendations on the Opinion page for pretty much each election. They also usually print and distribute a voter's guide from the League of Women Voters or some such, too. So the information is out there. A lot people just don't care until it affects them.
Zobel
How long do you want to ignore this user?
AG
Why on earth is that legal? How can a city tax a jurisdiction at the same rate that they don't provide the same services for?
Refresh
Page 1 of 1
 
×
subscribe Verify your student status
See Subscription Benefits
Trial only available to users who have never subscribed or participated in a previous trial.