What Are MSTU and MSTD Fees in Your Property Taxes?
If you’ve ever looked closely at your property tax bill, you might have noticed a line item labeled MSTU or MSTD. These stand for Municipal Service Taxing Unit (MSTU) and Municipal Service Taxing District (MSTD)—and they play a role in funding local services.
An MSTU or MSTD is a special taxing district created by a county or local government to fund specific services in certain areas. These services can include:
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Law enforcement or fire protection
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Road maintenance
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Street lighting
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Drainage improvements
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Parks and recreation
The key point? Only the property owners within the defined area pay for the services they receive. So instead of spreading the cost across the entire county, MSTU/MSTD fees ensure local needs are funded locally.
These charges are typically included as a line item in your annual property tax bill and are calculated based on your property’s assessed value.
Understanding MSTU or MSTD fees is important when budgeting for a home, especially if you're buying in an unincorporated or rural area where services aren’t provided by a city. Always review the tax bill or ask your Realtor to identify any special assessments that may apply.
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