Page 15 - ABHR MUD BOOK 2022
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MUD “Truth-in-Taxation”:
• In 2003, the MUD Truth-in-Taxation process was reformed.
o The goal was a more user friendly, easily understood calculation and
publication.
o Instead of using “effective tax rate” (now known as “no-new-revenue tax
rate”) and other calculations, MUDs look at the change in the tax bill of
the average residence.
o MUDs report in dollar and percentage terms the increase or decrease in
the tax bill of the average residence.
• The 2003 reforms have worked well.
• Senate Bill 2, “The Texas Property Tax Reform and Transparency Act of 2019,”
made significant enhancements to the Truth-in-Taxation process for all local
taxing entities, including water districts.
• The Legislature recognized the unique aspects of water districts and ensured the
water district property tax process was preserved.
Association of Water Board Directors -- Texas
