New North Texas Homeowners Hit With Unexpectedly High Tax Bills

A PID allows a city or county to charge a builder to develop roads, water, sewage, sidewalks, etc. A builder can pass that cost on to buyers and you'll see it on your property taxes.

[@amdg2023]

Assume everything's a scam unless otherwise proven.

[@michaelktm6061]

This is how the builder kept the price of the homes artificially low by not including the true cost of the house at closing and letting the new homeowner pay the rest of the cost after they have committed to buying the house.

[@clsm2836]

This is the best answer I’m a builder my self and I hate how the big companies do this We as small companies have to pay all upfront before build

[@Swagalious689]

Builder should be sued .

[@ab935]

Nice houses in a new area. Unfortunately many buyers don't realize somebody has to pay for those improvements. Why should the poor family on the old side of town have to help pay for streets in the new development? If I want a paved road out to my camp property I have to pay for it. There should be a requirement to post this info on the door of a house for sale however and it should be a line item that the buyer can pay up front.

[@jeisen6878]

@@ab935 Paying is not the issue, knowledge is! The issue is not if these fees are paid, it is to be told they are due. The buyer may agree to pay the fees or not to buy at that price. If they don't know the fees exist, they cannot decide and wind up stuck with the fees after purchase.

[@ab935]

@@jeisen6878 thus "post information on the door"

[@migueralliart]

Never buy in HOA communities. Retain your freedom.

[@AMD1]

Off topic, but okay.....

[@migueralliart]

@@AMD1 it's actually on point. These are scams on TOP of their HOAs. Horton homes builds only HOA communities.

[@joelpalos8293]

shut the fuck up moron

[@migueralliart]

@@joelpalos8293 you sound like a person that lives in one of thos HOA places and can't leave. You fit that profile.

[@stevethomas5209]

So I bought a home in a non HOA. After 23 years it seems neighbors are getting laxed and allowing dogs to bark excessively among other things.... Solution: be upfront and confront your ignorant neighbor make him/her the discussion of the neighborhood it embarrasses them to be called out they know everyone is talking about them... as for me I'm a truck driver so I'm already used to people talking about me anyway so I have no problem w embarrassing pencil pushing liberals. In fact I kind of make a sport out of it.

[@DIVISIONINCISION]

Another reason not to buy from Dr Horton. Heard nothing but bad reviews about them. Unethical builder.

[@TheCarnivoreSoprano]

Exactly. As soon as I saw that name I knew it was fraud.

[@dergluckliche4973]

You mean DR HORRIBLE? Shitty "houses," too. My parents bought one brand new built and it has been one problem after another. I can only hope when they sell it, it will be to some other blind rubes too stupid to do their due diligence and who enjoy quirks like no 90 degree angles and crappy workmanship where Helen Keller was subcontracted everything out to the _nth_ degree using the guys one sees loitering in the Home Depot parking lot.

[@samanthapryor7972]

Omg I said the same thing we are about to build and this builder was #1 to stay away from

[@dergluckliche4973]

@Slim Pickens I wouldn't buy a new built house in the US for all the tea in China. I've lived in Europe now for years anyway and am in no hurry to move back to the states.

[@northernfoxtraveler9646]

They tried that in Winnipeg Canada. They took it to court and the home owners won.

[@mrtee3477]

Beach front property in Venice is free.

[@grantr5417]

And if I am correct, that was for homes built 50 years ago, and the improvements was for construction of a new subdivision, not their benefit

[@arthurspooner36]

But now they took your gun rights away. Canada another rotten Commie country

[@meysammosaheb5556]

never buy a property in a subdivision. between HOA, the mortgage and taxes you only think you own the overappraised house.

[@sfrealestatedealmaker6001]

Yes HOA is trash. 👎🏼

[@guidedmeditation2396]

No worries. With Biden and "THE GREAT RESET" no private property will be allowed. They brag about this on their official website. We will no longer own anything. If we need it we will just rent it and we will be HAPPY they assure us. There is a reason Biden took over a Billion in bribes from the communist chinese. And what do they communist chinese get for a billion dollars? A communist America. COMMUNISM: a society in which all property is publicly owned and each person works and is paid according to their abilities and needs

[@TonyM-zi9rq]

@@guidedmeditation2396 You're an idiot...

[@meysammosaheb5556]

@@guidedmeditation2396 you are absolutely right

[@Cordycep1]

great idea, but not easy to find a quality home and peaceful neighbor within the suburb. Any agent will tell you no-HOA home the TX neighborhoods are eye sore

[@Mrs.Bell860]

Not in texas: It took us 3 days to close on our house in a subdivision. My husband read every single line. Attorneys were pissed! When it was all said and done we walked away from the closing table with $17K because of a breach in contact!

[@frotobaggins7169]

lol, i bet they were pissed. good for you. serves them right.

[@Swagalious689]

Your husband's a smart man.

[@mpowe123]

Hearing a win like this makes me so happy. 😃

[@TheGrandHistorians]

@Lashawnda Stephens Please explain further and consider making a video to illuminate the foul play these people play. Thank you.

[@TT-yf4kp]

Most of the paperwork we signed at closing was the same they had given us earlier which i read at home but still looked through before signing. I did not hesitate to hold things up as i read before signing. I am not going to be rushed on signing my name on anything.

[@DarthAzrel]

HOA's were bad enough but PID's seem, if anything, even worse.....

[@Sahadi420]

this is what happens in America when the news harps on moronic things. "fucked up taxes" is nothing new.....screaming about "racist America" is.

[@richardscathouse]

Nothing is worse than HOAs 🤭🤭🤭🤭😿

[@r.d.9399]

They shouldn't be legal to begin with.

[@jasonandersen5975]

@The Sun Goddess just because you are a racist, don’t assume the rest of the country is.

[@hse6144]

Texas is turning into California.

[@cghappy6782]

This is NOT full disclosure on all cost before closing and morally unethical. Sounds like CA mello-Roos tax! 😱😱😳

[@thomaswayneward]

hire a lawyer before buying anything as expensive as a house.

[@wanaraz]

My MelloRoos was only $500 bucks a year. That was disclosed long before I purchased. But these Texas PIDs are an outrage.

[@joek7031]

But everyone in ca knows about mello roos and competent buyer ask about it even before looking at a house. Never head of pid tho...

[@swdupree1]

It’s crazy the audacity all of that should have been built into the sell price of the home

[@theothertroll]

Racist fucker ~

[@ab935]

Nice houses in a new area. Unfortunately many buyers don't realize somebody has to pay for those improvements. Why should the poor family on the old side of town have to help pay for streets in the new development? If I want a paved road out to my camp property I have to pay for it. There should be a requirement to post this info on the door of a house for sale however and it should be a line item that the buyer can pay up front.

[@TheHrb1234]

@@stopglobalswarming Nice racist comment there idiot.

[@membear]

@@ab935 The Developer should include that in the price of the house, you are wrong, no one else has to pay for it, but instead of selling the house for $300K just sell it for $330K.

[@swdupree1]

@@ab935 absolutely correct

[@daisyjernigan2565]

thats the cost of living in a cookie cuter home..... where all the houses look the same and he only difference is the number on it

[@onthehill3381]

The houses looked like they only had 10 feet between them. Awful.

[@jmanrambo5144]

@@onthehill3381 if that lol....i could stand between the houses stretch out my arms and have each hand touching a house

[@jmanrambo5144]

i am sick to my stomach of these new cookie cutter houses they're building near me

[@arob79]

A North Texas version of The Shambles, which are in York, England!

[@gracefulvintage]

I’m not surprised since it’s DR Horton, horrible company. They need to sue for non disclosure. Despicable company, avoid them at all costs!

[@ardemus]

It sounds like the contract included binding arbitration and a class action waiver. They can't sue, winning doesn't set a precedent, they can't join to sue as a class, and they likely have to pay as much for the arbitration service as they have to pay for lawyers.

[@cookiedough5374]

You are correct. They need to be run out of biz.

[@M21assult]

@@ardemus you can get arbitration and class action waiver overturned in a court if you can prove it was included with intent to be predatory, which it seems like it was here. Judges actually quite like throwing arbitration clauses out the window. Company I work for had one, someone sued them over some shit they were doing, said they have an arbitration clause and the Missouri court AND the Supreme Court yeeted it out the damn wall like the Kool-Aid man making an exit. 🤣🤣

[@droidsdeals3161]

@@cookiedough5374 It's not DR Horton's fault.. It would have been the bank's fault, but, the truth of the matter is that it is the homeowners' faults for failing to read and understand the closing documents before they signed. If DR Horton needs to be run out of biz - it should be based on the quality of their homes. Do the American thing and stop buying their product. Problem solved.

[@cookiedough5374]

@@droidsdeals3161 they build shoddy homes. My comment was based on that. With the net, more and more stories like this will get out and they will have issues. I agree that these people should have understood what they were signing. DR sells to the bottom end, so a majority of their buyers don’t, or can’t read.

[@lmn222002]

Sorry I used to live in Texas...Land of the free my A@& the state should be renamed Taxes!

[@zacht9805]

I'd rather pay property taxes than income taxes. Plus this is a situation where you choose to be in a place with a high tax rate.

[@zacht9805]

@vivian celest Its 3% but go off sis. Lol 😆 plus I can make 200k a year and only live in a 100k house if I wanted.

[@zacht9805]

@vivian celest I've yet to see anywhere with a property tax rate higher that 3.4% with most places being around 2% or lower

[@zacht9805]

@vivian celest That's an 8% increase in property taxes as in you currently pay 2% and it goes up to 2.16% you idiot.

[@765kvline]

The Demicans love their taxes and the Republicrats love their wealthy friends and will do anything for them. Neither party favors the middle class anymore.

[@juliusreed5273]

Exodus of people moving from California moving to Texas do you really think these home developers aren’t rubbing there hands🤔🤔🤔🤔

[@TheCarnivoreSoprano]

This.

[@LJRoss-zv8hw]

Blame Texas for allowing it to happen.

[@MeanGeneSanDiego]

*their hands. "there" is a place.🙄

[@avaraxxblack5918]

Well you're apparently supposed to have the right to own property, yet people allow government to extort a perpetual fee (rent) for you to have property. This is not private property. It's government property you must keep paying govt to live in.

[@onthehill3381]

Exactly! This is the bottom line of it all!

[@michaelduggan1890]

Honest people getting scammed out of their hard earned money ! This happens everyday with no consequences for the people who do it.

[@CrazyPetez]

California has very similar shit, called Mello-Roos. We avoided buying in a Mello-Roos area. Let the buyer beware.

[@sfrealestatedealmaker6001]

Mello Roos is rare though.

[@lindas.3791]

I bought a New home in 1998. Of course they don't tell the buyers about it. That was in the Inland Empire. I'm now by Disneyland. I told my son about it. So he will know when he is ready to buy a home.

[@CrazyPetez]

@@lindas.3791 In California, part of the documentation is what is called Discovery. Is something isn’t in Discovery, there is a remedy, the seller is responsible for damages. We HATE all the laws in California, but the laws can be helpful.

[@CrazyPetez]

@@sfrealestatedealmaker6001 Perhaps in San Francisco where the land is almost totally built out, but in new develops in new areas in California, Mellow Roos is common. Some jurisdictions allow the buyer to pay the full Mello Roos TAX upfront and avoid the yearly tax. But not everywhere. As I said earlier, the buyer needs to beware and be informed.

[@AskMiko]

Mello Roos and homes built on leased land that the homeowner has to pay rent for the land their home sits on.... Cali is a mess

[@camiloson]

In Florida it's called a Community Development District. It's a rip off. Not only do you have to pay for the BOND (Principal/Interest), you also pay on-going administration fees.

[@zuzu.hallak]

thats crazy

[@SRBrown-vn4sw]

Greedy builders don’t want to pay for anything totally scum not disclosing

[@uk7769]

Not only that, but everyone can build their own home for a lot cheaper, but they don't let you. Minimum square footages, restrictions, endless. All lobbied for by, and benefit to the large corporations. People asked for it all, by the idiots they vote into office. Corrupt two party puppet show, and the show never ends.

[@ryanharris6555]

I’m never buying a house from DRHorton now lol

[@TheyRiseBand]

DR Horton is a terrible builder.

[@Impozalla]

Every builder in Texas has a PID tax. It's not only dr. Horton.

[@bikeman1x11]

Im likely retiring to TX and will avoid any HOA or PID \

[@leeendahoney]

D.R. Horton homes are not well built. Stay away from them.

[@doug.ritson]

Why would anyone ever pay a lawyer $500 to go to closing just to tell them where to sign? Now you know.

[@bikeman1x11]

the lawyer should notice this upon inital contract perusal and inform buyer- I live in NJ where $10k per year taxes are the norm but in tX an extra 30k is robbery

[@0xsergy]

@@bikeman1x11 they're paying 80k, didn't you see that? 10k is reasonable.

[@bikeman1x11]

@@0xsergy $10k is ridicualus for taxes on a modest home- my parents in TX pay $1200

[@jessykapop]

This is also called Mello Roos

[@sequoyah59]

Try asking to get all your closing documents before closing so you have time to review them. See what you get.

[@tcpUtube1]

We considered buying a home in one of Horton’s developments until we found out how much reoccurring HOA and PID fees and property taxes would be. PID fees alone would have added 50% onto the taxes. Property taxes in Ft Bend County TX are already over the top. (Friends living in the Heights, Harris County TX, pay half what we pay in property taxes for their home which is valued at 30% more than ours.) but it does appear that PID fees are the only way companies like Horton and Webb can continue building new housing developments. However, not disclosing these development costs and the buyer’s option to avoid paying additional for financing is a deceitful business practice. Who benefits? Follow the money. Don’t hold your breath that the TX Attorney General’s office will investigate this practice.

[@GeekRex]

But you don't have an income tax right? Suckers.

[@Cordycep1]

this scams has been going on for almost 30 years, this is TX where you can bribe any judges and politician.. Most homeowners when they found out the high tax/fee they usually sell .

[@inquisitvem6723]

True, but homes in the Heights are so high too. You should've moved to Rosenberg or Richmond, but even now, those prices there are going up.

[@demikpre]

Why is the pid being charged interest 😱 shouldn't even be allowed to be done. Anyone ever signed for a home knows there's a book worth of paperwork you sign and it's entirely to easy to slip fuckery in there 😤

[@frotobaggins7169]

they hide the costs because if disclosed it or added to the purchase price, it would greatly reduce sales. effectively they are hiding a significant cost of the home. if when asked the price of the home they gave the cost plus pid, many buyers would simply walk away.

[@judylee3589]

I'm so glad you posted this for people to know. I'm considering buying in Texas and so now I'm aware!!! Thank you!

[@josron6088]

Most Financial contracts are predatory. Student loans, car loans, mortgages Etc.

[@jasonandersen5975]

Nonsense. Student loans are only predatory if one is a greedy moron who chooses a worthless major.

[@johnrandazzo3250]

I totally agree with you. Should be a commandment in a Financial bible.

[@wanaraz]

BS! All those loans can be paid cash. It's a choice.

[@Mars-pp9cx]

@@jasonandersen5975 Every loan is predatory in some way because the loan itself is worth something and whoever is loaning the money wants interest on it. It's one of the only debts that you can't declare bankruptcy on.

[@brandoncaldwell95]

@@Mars-pp9cx you can, just have to do it right. Also have assets to liquidate and cover the remaining bill...

[@FA-ft9dh]

This is why I hate HOA and builders.

[@taylorcrisp3569]

I like to avoid cities all together

[@lindahon5109]

it's the same PIC and HOA they just put a new name on it. haha

[@beamills9205]

@@taylorcrisp3569 IN TEXAS ,THE COUNTY DETERMINES YOUR PROPERTY TAXES....IF YOUR NEIGHBOR BUILDS BIG, IT IMPROVES YOUR VALUE....!

[@lindahon5109]

@@Mike-ug8yc sorry i mean Mello-Roos tax

[@MsDy-vv8jo]

I am a Realtor here in North Texas and my Realtor colleagues need to look out for this also and make their client aware. STOP looking at what commission you are getting and represent your clients properly. Period. Also, buyers this is why it is important to have a Realtor representing you with new construction. The builder will not explain this to you.

[@terialbrett241]

The AG needs to step in immediately. I was thrown in PID6 a year after closing by The City of Fort Worth and was told by my council person that I had no choice because they voted it in. So it can happen at anytime for the city to increase their tax base. Theives!

[@DailyMynt]

Just in case you didn’t realize that taxation is theft, they just spelled it out for you.

[@stevebrannon69]

I have to laugh. Everybody wants to move to Texas to avoid taxation. And what does the Texan government officials do, exactly what California does. Don’t blame us Californians on what your state officials do.

[@politicallyincorrect9027]

@@stevebrannon69 Its because the people from California brought their political ideology with them. When you move away from corruption but don't change the way you vote the the place you moved to is going to end up just like what you moved from.

[@salaciouscrumb4386]

I doubt your AG will do nothing about the PID. Right now your AG is trying to run away from the FBI.

[@johnyjsl9219]

@@salaciouscrumb4386 good one

[@kenkaufman9998]

LOL.... Texas, you don't know extreme high taxes, come to Illinois or NJ for that! Those taxes look very low!

[@donnag7288]

Lol. Yep 18,000 taxes for 850,000 home in northern NJ

[@inquisitvem6723]

im in texas and paid $6,200 for $245K home.

[@Cordycep1]

@@donnag7288 850K home in TX near the city/suburd would be around $25k. property is Tax is around 3.0 % to 4% depeding on the area. 2% in rural area.

[@krisp2219]

Florida. 200k home $1600 tax

[@highlymedicated2438]

@@donnag7288 Jesus Christ! Wtf

[@sheryljones5207]

Where do they get off charging that much for land tax that is just ridiculous.

[@wanaraz]

Have you seen Texas property tax to begin with?

[@l.austin2371]

Especially on stolen land

[@jeffd4056]

No income tax in texas Just property tax Still cheaper to live in texas than in Minnesota

[@0xsergy]

@@jeffd4056 bingo. no income tax = homeowners are the ones who are basically getting 'income taxed'

[@margaretbedwell58]

That is over and above what the tax is on the lot and house. Look how many times you will be paying for that lot and house over the length of the mortgage and then forever beyond....It will be difficult for those homeowners to ever sell their house. Or am I misunderstanding and this is just a one time deal the first year.? It is still outrageous if that is the case. If it were me I would have to take a second mortgage just to pay it.

[@richystar2001]

Welcome to California ..Texans.

[@membear]

Yup, they think they can avoid taxes there, they just pay them in a more sneaky way.

[@kenc2257]

Sounds like Mello-Roos in CA. However, in CA, those costs are disclosed upfront, and folks either eat the costs (which are paid monthly, along with your mortgage), or avoid those neighborhoods. Having them hidden in the fine print, and then paying interest on those costs--that's not right.

[@michelleevans5531]

And stay out of Texas Californian. Go back home.

[@rochellemc2690]

@@michelleevans5531 EXACTLY!

[@LJRoss-zv8hw]

@@michelleevans5531, the only people moving are the ones who can't afford California. I'm not moving because I love my freedom.

[@margaretarross1712]

A most excellent piece of journalism. Bravo and thank you. I'm passing this along. Sneak attacks like this will soon be the norm if this isn't exposed quickly enough.

[@mikegrant8031]

Dont move into a brand new development and you will never get a pid tax. The reason people are paying it is demand is that high.

[@matthewgardner2144]

And they thought it was so great to have a new house in that hellhole development!

[@iuyozx]

The county can charge the builder to install infrastructure to a support new homes??? Sounds like a racket to me. New homes are advantageous as the county has more property to assess taxes on. This PID is some kind of bogus tax extortion. I didn’t think my state was this corrupt.

[@glasslinger]

Why not? You elected the people in charge!

[@mikeg3439]

It's pretty common here in Los Angeles county, developers not only have to pay to have roads and utilities covered so the government is not out of pocket, but can even be required to, at a loss, dedicate a percentage of what is built to low-income housing. This is part of why a new home in Los Angeles is often around 700K to 800K range. I am not sure if it's like this all over the USA, maybe someone with broad knowledge can comment on whether or not this is unusual or common across the USA. But in Los Angeles County, basically you have to either make less than 20K a year to get (free/subsidized) housing, or more than 100K a year (to rent or buy, and frankly if you want to buy in a halfway decent neighborhood, more like 200K household income to be manageable) . It's VERY hard for people in the middle class range to get housing here. You gotta either be broke, or loaded, for it to be manageable.

[@mikeg3439]

@vivian celest why vote for either. Dems = corrupt, Reps = feckless/useless. Not sure why I would want to hire either of them.

[@glasslinger]

@vivian celest Yes, it is outrageous. The lack of state income tax helps but not totally. I am retired and over 65 with my house paid off so I pay ZERO taxes! (Other than sales tax) The summer heat is another reason to get out of here but Arizona is like jumping into the fire!

[@glasslinger]

@Juan Lopez Look into property tax deferment. I think it is all over texas but maybe not. It lets you defer your property tax until you die or sell. Whoever gets the property pays taxes due off the sale and keeps the balance. I think you have to have your property paid off to do this.

[@jblyon2]

The benefit of living in a low tax state: surprise bills. There's no money to build infrastructure so it's tacked on like this. My Dad always said "they get their money one way or another".

[@j_boogie_483]

just like how I say on no sales tax in Oregon

[@hse6144]

Not in Nevada, we make the casinos pay for everything.

[@jblyon2]

@@hse6144 Nothing wrong with that. I grew up in CT and we were always pissed that they'd never make the casinos there pay enough. Even with what the state did get from them it was a net loss on the cost of emergency services alone, let alone infrastructure, etc.

[@hse6144]

@@jblyon2 that’s interesting. It’s probably different here since we get so many tourists. We’re able to tax them on a lot of things like their hotel room. I work for a casino group with properties in Baltimore, they don’t turn a profit.

[@Rhaspun]

@@hse6144 The tourists are paying for a large chunk of the new Raiders stadium. Cities shouldn't be giving away anything to help make a rich NFL team owner even richer.

[@kkim0221]

Taxes should be levied based solely on income you make, not the value of property you purchased PERIOD!! You have already paid the taxes before buying the property and you can't double tax on it! Congress should enact the law ASAP!

[@banksjim]

In Colorado, this same tax is called a "Metro District" tax

[@largelarry2126]

Or people could avoid any area that has a PID and it will stop, if they can't sell the homes they will find a better way.

[@joyaustin6581]

Never heard of a PID before this

[@swdupree1]

But the point is they didn’t know that there was one to avoid it

[@jacobmaez277]

A PID isn’t necessarily bad, it’s paying for what you need. Subdivisions without a PID may be subsidized by more urban developments which nobody wants. People need to be presented all costs in a fair manner though, and this is really a story about the developer not being upfront about the costs

[@ericp1139]

PID, fees, taxes...whatever you call it, they always get their dues.

[@georgehovey9299]

Enhanced revenues.

[@samlee1546]

Why would you buy a 300,000 dollar place just to live right next to your neighbor? Might as well live in a trailer park or an rv park lol at least in an rv park if your tired of the area or neighbors you just leave.

[@billl1127]

Lol, we pay $800k + to live next to our neighbors here in California. $300k? What a bargain

[@stopglobalswarming]

@@billl1127 idiot

[@sp123]

Some people need to be close to their job or a good school district for their kids

[@billl1127]

@@stopglobalswarming No, not really. Most of us who have been here for 20 years have tripled our money. My neighbors sold for $950k and built a new house outside Austin on multiple acres.

[@ptaylor4923]

YEP... People moving from California and they're driving the growth in Texas and it'll turn into California.

[@LJRoss-zv8hw]

California isn't responsible for the tax.

[@popcorn8153]

@@LJRoss-zv8hw people love to play the blame game. Today it's California tomorrow its Washington State

[@LJRoss-zv8hw]

@@popcorn8153 , I agree.

[@str8tbummin]

This has nothing to do with california. More to do with greedy companies.

[@LJRoss-zv8hw]

@@str8tbummin,yep. Too much jealousy.

[@SIGNALFREQ]

It's funny how they disguise the word PID 🤣

[@JeffDeWitt]

It doesn't sound like the PID was really the problem here, it was the fact that D.R. Horton didn't fully disclose how much it was.

[@felipeCL73]

It is a problem, because it's extra taxes just because

[@JeffDeWitt]

@@felipeCL73 I'm not a fan of extra taxes either, but the people buying those homes should have known about the tax first. THAT was the real problem.

[@TheNaturalebeauty]

In Maryland, we have this fee. It is called a "front-foot" fee. It sucks.

[@robertthomas5906]

Only if you have WSSC. Water & Sewer - www.wsscwater.com/customer-service/rates/front-foot-benefit-charges.html . That's peanuts side of what this PID did. Could be like me and have Septic & Well. Every 30 years I have to replace my water pump and equipment. When the fields go bad that's about $20 grand (Hope it's just 20 grand) to dig the new one.

[@thomaswayneward]

Don't buy in a subdivision.

[@donbee4058]

In Nebraska it's called SID or Sanitary Improvement District and people up here are aware of the costs. Long time practice here - welcome to modern America.

[@averypetty2465]

California calls it Mello Roos . Same thing . Adds another tax for 25 years . Very high

[@thomaswayneward]

All of the subdivisions I build homes in for over 50 years, the improvements were paid for by the developer, before the lot was ever sold. The improvements like roads, etc. were certainly in the cost of the lot, but the homeowners knew the price of the lot ahead of time, and there were no worries after buying the lot.

[@liza.1888]

That’s how it started in California! Texans better step up and do something about it NOW/ASAP!

[@JRS2248]

YES WE HAD THIS HAPPENED TO US IN ca 20 YRS AGO! CALLED: Mello Roos; they will get you any way they can!

[@wanaraz]

You don't have to buy a house with Melloroos. It's not mandatory.

[@nativesunnation8323]

It's always a 'new dress on the same old pig' isn't it?

[@eljefe4473]

In arizona we call it a impact fee. 3400 dollars where I live and it is charged when permits to build are pulled. More taxes from big brother

[@AwilsonBLOGME]

This is exactly why we sold our house and moved back to country

[@JASONHJEFFERSON]

got 40 acres in Oklahoma i pay 735 a year property tax with a 4 bedroom house and 3 barns on it

[@edo153]

@@JASONHJEFFERSON Jason what’s the catch? What I mean is there’s gotta be something you pay more than other areas otherwise we would all go over there now. Is it higher utility rates? Insurance?

[@JASONHJEFFERSON]

@@edo153 none really i pay income tax but i usually get a refund on it and i own my land and home outright. Oklahoma does have sales tax on everything. im a truck driver so i can live anywhere i choose

[@JASONHJEFFERSON]

@@edo153 and my electric is low but i make my own with solar and wind the winter months i end up with a negative electric bill

[@JASONHJEFFERSON]

Oklahoma is a great place to live if you got a 100 percent va disability rating get a tax exempt card pay no property tax and car tags are 6.50 a year

[@gustavoaragon4194]

This is why i will never buy a house in the USA. The amount of greed is disgusting among all the parties including the state and local entities

[@hse6144]

Where do you plan to go, Botswana?

[@wanaraz]

Then be a renter. No problem. Your choice.

[@happycook6737]

Yes, please rent. That way all your hard earned cash continuously goes to others for your whole life. 80 years old and still needing to find money to pay rent...

[@rd341]

DRHorton is now a on my warning list for my buyers! I will also tell them this horror story to avoid this builder.

[@projectgtp9186]

So this is why Texas houses are so “cheap” 🤣

[@BrandonCorby-wr5nd]

I pay more living in Texas (temp for work). Than I did in LA, Cali! Because day to day life was cheaper grocery, liquor, gas was cheaper because I drove less!

[@felipeCL73]

They are, notice how those houses were around 300k, which can get you a shoe's box to live in Cali

[@projectgtp9186]

@@felipeCL73 looks like you didn’t watch the video!😂

[@projectgtp9186]

@@BrandonCorby-wr5nd exactly! People don’t consider employment opportunities either. Very surface level thinking with the whole tEXAs gOoD CaLi BaD argument

[@felipeCL73]

@@projectgtp9186 I'm obviously not counting the theft of tax

[@johnnyson7474]

So the cali residents that moved here brought along their taxes. Great, might as well called this state California.

[@chriscarter2560]

Take it court and file a law suit with the other home owners

[@FractalPrism.]

how tf is this "he said she said", its clearly a deceptive practice.

[@NickSiekierski]

@@hangxiaohuz748 Because the developer probably advertises on the station or has other business connections to it. Watch that 99% of those affected will still have to pay the PID (another propaganda spin term for taxes like the word "fee") but the media will have done their due diligence to make everyone "aware" of the scam without any recompense. Local fake news spins things just as much as national and international outlets but for local interests.

[@KarlLetcher]

It’s the kind of thing a brain-dead corporate lackey says because he thinks it makes him sound smart.

[@richardscathouse]

Nobody's fault but your own if you don't do your homework! 🤭🤭🤭🤭😉😈

[@richardscathouse]

@@hangxiaohuz748 Woman? I thought it was a pig in a dress! 🤭🤭🤭🤭🤭

[@waydegardner1971]

We moved from Frisco three years ago and considered moving back to the area. The PID and MUD taxes would add several hundreds of tax dollars per month over already high property taxes. We’re staying put.

[@Steven-ud8kz]

I have 2 houses and filled out three mortgages. I do not know how their mortgage lawyer would not have caught this. It is their job to investigate crap like this.

[@sorcelord65]

@2:47 it’s states they were not presented the document until closing. I don’t think many mortgage lawyers are there during the closing process. 🤷🏾‍♂️

[@twoweary]

Most people don't have a mortgage lawyer, they only have their real estate agent they count on to not get ripped off.

[@Steven-ud8kz]

@@sorcelord65maybe it's different in every state, but here in CT, I have never heard of anyone not getting a mortgage lawyer. Even if you get an inexpensive house, that can still be a 200k investment. Why not spend 1 to 2 thousand on a mortgage lawyer? Also, when I went to sign all the documents for closing, my lawyer had read every page and summarized each page for me. If a new page has suddenly showed up on the day of closing, that would have been a huge red flag for her. I don't see why anyone wouldn't protect their investment into a 6 figure purchase with a mortgage lawyer. Btw I'm not rich. I do just ok so I don't have an ivory tower view on this issue.

[@sorcelord65]

@@Steven-ud8kz yes that could be. I’m from and live in North Texas. Dallas area to be exact. I’m also a licensed real estate agent in the state of Tx. And I can tell you. Lawyers only come into the mix with commercial property here. Here in Texas you do not have to use a lawyer to purchase your home so for that very reason I can say 95% do not. Only time a layer comes up for residential property is when a agent is feels themselves providing legal advice (practicing law) which we are not allowed to do so we advise you to speak to your lawyer. Or if it’s from a more savvy or super on edge home buyer who wants their lawyer involved in the process no matter what.

[@sorcelord65]

@@twoweary very true. Here in Texas agents are only trained to understand the Trec (Texas Real Estate Commission) contracts. Not practice law . Most people here do not even want to pay a commission to the agent let alone get lawyer fees involved lol

[@michaelwiley5427]

Everything bigger in Tx, why are houses stacked on top of each other?

[@lemmingsrule8816]

More money per sq ft..that simple

[@rockrollresale2668]

@Donald Thorpe I seem to remember a German leader comparing humans to rats. Oh right, your a Texas Republican and therefore a proud racist. Sorry your butt-hurt about the Grand Wizard losing his job. I can't wait till the revisionists fix that bullshit Alamo story you dummies believe. Enjoy your flat Earth.

[@Jon.......]

Why wasn't the "development charge" simply added to the price of each house? Also, was the PID included in the mortgage documents?

[@BradHouser]

Because it would have made the home appear to be more expensive and the seller would rather not be upfront about that. Apparently, the mortgage documents mentioned the PID in the fine print, but not the amount.

[@Jon.......]

@@BradHouser You are correct

[@raybod1775]

Sucker bait.

[@mrparts]

So sleazy. PIDs are in almost all those new flashy Frisco and Prosper developments...

[@frotobaggins7169]

because $30,000 is 10% of the cost of a $300,000 dollar home. i suspect most buyers would have walked away on the additional premium alone. it's straight up dishonest.

[@23cla69]

Texas is seeing the same problem California had back in the 70's. Population is growing and putting more stress on the financial resources. New schools, roads, highways, police, companies relocating to Texas with massive tax breaks. Guess who pays for it? More people in your state more problems.

[@hermanrogers1325]

HOA and PID , I feel sorry for those people another flim flam to take the home buyers for all they are worth i mean all

[@yudithyu3611]

So like D.R Horton style. They do stuff like every where they built.

[@evnejg94]

Very true but they only do what regulators allow them to get away with..

[@christobar]

@@evnejg94 Lol regulators in Texas? Who would those be?

[@oo6215]

D.R. Horton subdivision are everywhere down here in south Louisiana.

[@yudithyu3611]

Not necessarily what regulators allow them.For example: in Walton Co. Florida they faced challenges as fluent residents in a subdivision which had already been built 1/3 and had HOA in place, fought back. Obviously, these people had the money to fight them and not only the people won, but in the midsts the county found that DR Horton was building without permits; just parts of the built.

[@edwardseid5571]

SHould have been disclosed somewhere prior to signing the purchase contract.

[@niceguy6837]

Or read what your signing, it was a sneaky thing to do, unethical yes but not illegal, they make those contracts long and boring for a reason but where u sign it says I have read and fully understand this blah blah blah

[@ctyragdoll]

Didn't they say at closing? Without any actual disclosure of price??

[@stephenpowstinger733]

It probably showed up somewhere, but as the vid shows the statement about it did not mention a dollar amount.

[@0xsergy]

@@niceguy6837 doesn't say how much though.. they just say it'll be added onto taxes. that's the prob

[@kenavram5586]

I live in a suburb (grand Prairie) and they didn't even ask the home owners if they wanted a PID, the city council just voted it in themselves, we now live in a PIDwith absolutely no say on it, that should be illegal to make you have a PID after you have already moved into a home.

[@Moondoggy1941]

2:00 In Ca we call that a Mello Roos, usually 1% on top of the county tax of 1.1%. So a 500k house almost 10k to 12K in property tax.

[@zacht9805]

That's actually not too bad. I live in a MUD in TX my property tax rate is about 3% but I also knew what I was signing up for lol

[@ErikaLaGrande]

Mello Roos pay for new schools. My dad bought a new house for $950k. It added $800/month onto his property tax. He’s paying $1800/month between the two...and his mortgage.

[@larry91403]

Also - property taxes are lower in California and capped. Your agent should be asking the sales office if there is a PID or any other fees.

[@BonafideGail]

There's no state taxes here which makes it seem to be an ideal place to move here in Texas. Well that money has to be made up somewhere and that's how they do it here.

[@mlw1700]

I moved here from NM and cost of livng is definitely higher, but so is the standard.

[@shadowfoxcorp]

All I took from this is my generation will never be homeowners.

[@curtissharris8914]

it will happen just be patient work in an industry that pays decent.

[@rickgeller6043]

3 7 No one owns their home. You may hold the property deed after paying off the mortgage but you’ll be stuck forever with property taxes. See how long you can keep your home without paying property taxes before it’s seized and auctioned off for back taxes.

[@shadowfoxcorp]

@@rickgeller6043 Yea, I know. That's the other problem.

[@uk7769]

Boo hoo. What's wrong with renting?

[@Theyfightnbite]

Its very possible to own your home. It just takes some work and a little bit of sacrifice, i bought my first house at 26. Im a welder by trade, i didnt waste my money on a four year college degree that is worthless.

[@tixximmi]

In CA they have Mello-Roos. You know what it's going to cost up front AND it's for a limited number of years. Usually about $100 a month for 10 years. Depending on actual costs and the number of homes built. This separate number is disclosed up front. City/County/State Government Fail if they don't mandate the disclosure.

[@ashforkdan]

In Calif. It's called tumf fee. Transportation unified mitigation fee. 2.00 per sq ft. And it still stands after I left 27 years ago. They were told it was only going to be .25 cents but after it passed it went straight to 2 dollars. Add on the lizzard fee 1500 and the Stevens rat fee 1200 it went from 200 for permits to 20.000 to get permits. I left and never looked back.

[@joshuacorrea9592]

Sounds like some ca fuckery. That's ROBBERY after the fact.

[@zedzed5276]

With 0% income tax, the state needs to get money another way. Property taxes are going to go up in Texas. It all evens out eventually.

[@MajorSquiggles]

@Ellim Garak there are red and blue states and no that's not true. Not only are states like CA not actually wealthy but they certainly are not able to subsidise neighboring states. Though not a hard rule red states tend to do better financially than blue.

[@dogguy8603]

Uhhhh TX has had the highest property taxes in the nation before the California influx happened

[@jasoncrandall73]

Here in Florida a lot of home builders like CDDs (like PIDs) but a builder like Adams Homes does not but their homes are $20k+ more than those other builders (+ they give you bigger lots) so the buyer has to look around & ask questions.

[@niyablake]

I love how people say California is a liberal hell hole I pay more in sales tax in Alabama then I did in California and California does not tax groceries . Also California requires full disclosure with real state . The PIDwould of had to been disclosed and with the price. So No this is not a California thing as California has stronger consumer protections

[@ArminiusVicious]

They didn't do this where I'm living and the Californians, Seattleites, and Portlandians bought up property all over the place. Turning every square inch into subdivisions and HOAs and pricing us out completely. Wish we would have charged them accordingly so we aren't footing the bill for the. Moving here and driving home and property prices up to SF rates

[@steakwilliams4448]

You wouldn’t happen to live in the Boise area, would you?

[@ArminiusVicious]

@@steakwilliams4448 I've been all over the state, and yup.

[@shaunelijah455]

In Texas the property taxes are EXCEEDINGLY and ABSURDLY HIGH. SHAME on patriotic, conservative Texans for not rebelling about this long again. As long as you keep quiet they will keep rising. As for me I'm headin' north and going to buy a home and live in Oklahoma. Where the folks keep their government in check.........

[@jessefuller8808]

Would likely be a deal killer on these properties if they were upfront.

[@nc8524]

Wasnt DRHorton in the news before few yrs ago ...something about their fast built prefab homes falling apart?

[@tweedconstruction]

Hell yea

[@JASONHJEFFERSON]

for 300k you can get a home where you dont have to walk sideways between houses

[@onthehill3381]

Lol

[@perrym6937]

you need to get rid of city leaders/commioners/mayors/any politician your inaction is what has allowed this to happen

[@oldschool1928]

The Californian exodus to Texas will be re-routed to North Carolina, Arizona or Nevada. :(

[@Asskicker41582]

Fantastic. Send them back to where they came from!

[@oj4499]

@@atx-cvpi_99 delete your comment

[@johnpalmer5131]

This a classic case of how you don’t get get nothing for free.

[@inquisitvem6723]

Wrong. It's a classic case of you're paying more than you expected. Those homes were not low to begin with averaging 300k to start...not anywhere like free.

[@rosemarywilliams9969]

So true!

[@b-genspinster7895]

They should have to pay for their own infrastructure. Usually the costs are passed on to all tax payers in the county. How is it fair to pay for someone else’s road or school or fire station you won’t benefit from? California has prop 13 which caps property taxes to rates at purchase time whether it was 1980 or 2020. Things have to get built and there are costs you can’t make up collecting from someone 10 miles away who bought their place in 1985 in California. In Texas, homeowners are just driven out of their houses because they have to pay for someone’s new road in their exclusive, affluent new subdivision.

[@tommays56]

Dr Horton look them up and consider yourself lucky

[@topaznora2055]

For the people comparing liberal cities Texas. Calm down. you are still being taxed like twice the rate. I don't want to even get into NY and NJ. They really like to rim people. liberal cities are paying 20% or more in taxes and that's not including federal taxes which can range around 15-25% for most people. In places like California and NY, you are paying HALF your income in taxes! San Francisco: Sales tax: 8.5%, San Francisco: property tax: .65%, San Francisco: Flat income city tax: 1.5% California Property tax rate: .77% California Income tax rate: up to 13.3% California Gas Tax: 62c per Gallon: Let's say about: .01% Total Taxes BEFORE federal Taxes: 24%!!!! . Dallas Sales tax: 8.25% Dallas: property tax: 2%, Dallas: Flat income city tax: 0% Texas Property tax rate: 2%% Texas Income tax rate: 0% Texas: 62c per Gallon: 0% Total Taxes BEFORE federal Taxes: 12%!!!!

[@BonafideGail]

Texas doesn't pay state taxes which is a false lure for newcomers. Services need to be paid for. And that's where the property tax comes in and it's going to get a lot higher before it ever goes down.

[@topaznora2055]

@@BonafideGail how is it a false lure? You still cut your overall taxes in half. Whats false about that?

[@jiminfested]

@@topaznora2055 ... that's not how percentages work. 8.5% sales tax isn't 8.5% income tax. 0.65 property tax also isn't 0.65% income tax. You can't just add the percentages assuming that they are equal. 2% property tax on a 400K home is 8K. If your income is 100K that's effectively an 8% income tax, so 2% state, 2% city that's 4% property tax... wanna guess what the equivalent income tax is?

[@PSUJerseyGirl]

Mistaken in NJ..we don't have hidden taxes...like HOAs, high car insurances, car tax, high HO insurances, etc..plus higher salaries. Plus our police and schools are not underfunded...that is why salaries are high and crime is low.

[@katrinastuckey2102]

Great information!! Thank you.

[@brownsamurai3070]

LOL, and they didn't even have a clue that Covid was coming next.

[@arcsindiva5932]

And they will have a hard time selling their home to get out!

[@mr-vet]

With no state income tax, government has to get revenue from somewhere...roads, sidewalks, parks, police, schools, fire departments, etc...aren’t free. Ideally, the PID should be a builder expense, not home buyer, though.

[@whizbang7130]

Same in the hill country. Property taxes are ridiculous. We had to sell and move into a manufactured home. I NEVER THOUGHT....

[@mikeg3439]

This is not that uncommon, and if new homeowners are "being hit with" these bills it kind of sounds like some buyer's agents are not doing their job in making sure their clients are informed about the consequences of their home purchase, or the buyers ARE being informed but are brushing past the information without bothering to truly understand what it means. In Los Angeles County, we have Mello Roos assessments on some homes (I think it was just named after the guys who put it into effect) and when you go look at a home, on the cute little marketing sheet the agent hands you, it's almost always disclosed to the potential buyers (in other words, it's one of the first things the seller says to you, because they are decent agents who want to be honest and don't want people coming back at them saying "you didn't warn us").

[@dknowles60]

there is a fed gov law that say you must be told all cost

[@a.l9313]

When homes are built on greenfields, someone has to pay for All of the public improvements. Cities can't afford to. Developers used too. Now apparently they've figured out how to pass it on to unsuspecting home buyers, while keeping the home prices artificially low.

[@rightoftheline6521]

Exactly. It's not some new tax it's just gone from being included in the price of the home to separated so the builder can make the homes appear less expensive. Has been going on for years in FL known as CDD fees

[@zacht9805]

@@rightoftheline6521 I'm amazed that people didn't know this was what they were signing up for. They must have either had no real estate agent or a really bad one. I live in a MUD and knew when I bought a house here that there's a 20 million dollar bond that has to be paid off through my property taxes. I don't blame counties and developers to use the strategy its a great way to fast growth and I'm gonna pay for it either way anyway.

[@cherylulakovic8613]

Yes, it's called DECEPTIVE TRADE PRACTICES which is a $50 term for LIARS.

[@diablo09090909]

WTF! Glad I came across this before i closed!

[@AntranikMinassian]

Las Vegas Homes has them it's called SID / LID. Special Improvement District & Local Improvement District.

[@lemmingsrule8816]

Who cares..just money..COME ON MAN ,, i am joe...i.approve this message

[@Alexander-in1hv]

😄 🤣 😂

[@cancel.lgbtq.6892]

In Vegas , newer builders in nicer area called it SID / LID along with paying higher HOA. So buyers beware when buying new home. They dont tell you up front if you dont ask.

[@sexygeek8996]

That's why I decided to buy an older house: no SID, LID, HOA, etc. It was a good decision because in the next few years there were a lot of lawsuits for construction defects in new homes.

[@dav8388]

this is what happens when you have politicians with CEOs in their pockets, and what party does Texas always vote for again?

[@Rhaspun]

Reed states also tend to have weaker consumer protection laws.

[@dknowles60]

@@Rhaspun wrong

[@danlaur7973]

I thought Texas was such a great "low tax" state? LOL

[@redpillsatori3020]

Ya people don’t realize that property taxes are insane in places like Austin and Dallas. People just look at the no-income tax and lower housing prices but overlook that detail

[@voyageview9705]

@@redpillsatori3020 Even in Houston TX

[@soonerdave01]

Moral of the story: never sign anything without first consulting an attorney. There are just too many shady people out there these days.

[@lostintime8651]

nope. read the papers yourself. highlight things you don't understand. google the terms. then have a lawyer review it. PUT ON YOUR BIG PEOPLE PANTS!! stop being lazy.

[@soonerdave01]

@@lostintime8651 Lol! Okay there Mr Educated 😂

[@michelleevans5531]

See what buying a home in a new housing development gets you?

[@jeffbarnes54]

This is common in Florida as well, especially in the The Villages and northern Florida where there are not large existing cities to develop the infrastructure.

[@hargert]

Had the same thing happen in Colorado in 2007. We even went to the city to check tax rates before we built the house. Just about doubled the yearly taxes for the property.

[@bradzillabrave6856]

It is literally the price of suburbia. Did you think all those roads, bridges, sidewalks, waterlines, powerlines, etc. are free???

[@wanaraz]

How were they paid for in the last hundred years?

[@trwoody1]

Property taxes pay for these improvements - sounds like a a political scam where the county is double-dipping by collecting property taxes and not having to pay for streets, sewage, lights, etc...

[@ardemus]

@@wanaraz I understand that the developers are generally responsible for the infrastructure as part of their up-front costs, though it's all negotiated with the city in the contracts for the development.

[@user-yg2nu7zc4c]

The attorney is well fed.

[@richardscathouse]

Too well!

[@ahmedhashmi3584]

Today it’ll be a PID, tomorrow it’ll be DID..what difference does it make?

[@jessieharbinjr.6589]

It’s a shame that most of these houses cost the builders no more that $80k or less to build. But they’re able to get well over $350k PLUS this large tax bill out of people who finance them. It’s a very lucrative transaction, in a market where the demand is high, supply is short, and purchase price is income segregated.