The State of Texas grants municipalities and counties the power to create Public Improvement Districts (PIDs) under Texas Local Government Code (LGC), Chapter 372. The city or county may initiate or receive a petition from property owners requesting creation of a PID which has a defined geographic area within the municipality or county. State law allows a wide variety of improvements, such as landscaping, affordable housing, sidewalks, art, libraries, mass transportation facilities, utilities as well as services to promote the PID and its administrative expenses.
The City of Austin supports two kinds of PIDs:
- A “development” PID is a special purpose district created to help spur economic development by providing a means to finance the costs of infrastructure that benefit and promote the development within a geographic area of Austin. These costs are borne by the property owners within the PID boundaries who receive special benefits from the public improvements. Austin’s development PIDs are managed by the Financial Services Department.
- A “maintenance and operations” PID is a special purpose district that allows property owners with a geographic area to enhance services and public improvements that benefit the properties located within the PID boundaries. M&O PIDs are an economic development tool commonly used to support commercial business districts and promote growth. M&O PIDs are funded through a special assessment on real property within the District. The City’s Economic Development Department manages M&O PIDS.
In 2020, Austin City Council adopted Resolution No. 20200220-015, the City of Austin PID Policy, to set policies governing development and M&O PIDs formed in the future.
If you are interested in creating one, please review the PID Policy closely to confirm eligibility. For additional information contact: (512)974-2590, e-mail: pidsidtaxes@austintexas.gov
Maintenance & Operating PIDs in Austin
Austin City Council has created three M&O PIDs at the request of property owners. By state law, more than 50 percent of the owners within the boundaries either by parcel number or by taxable real property value must agree to the creation and continuation of a M&O PID. They were created to undertake public improvement services and projects funded by assessments on real property within the Districts. Common M&O PID services in Austin include public safety and health, sidewalk cleaning, minor capital improvements, beautification efforts, and promotional efforts, including events and marketing. As required under State law, Austin City Council approved the creation and reauthorization of Austin’s M&O PIDs, designated an organization to manage each PID, annually sets the rate of assessments, approves the property roll listing assessment by address and approves each PID’s budget and service plan showing the source and uses of funds.
For more information on each M&O PID, visit: