Originally,The Woodlands was regulated by a Homeowners’ Association, but was eventually incorporated as a Township with elected officials. At that point, the HOA fees were eliminated and a tax, based on individual property value, went into effect. The taxes paid as a resident of The Woodlands include the city and county taxes (within which the hospital and school districts are covered), water district taxes and, of course, the township tax. For more information on the history of taxes within the Township, click here or to gain a further understanding of The Township, its governance, and the services provided, click here.
Water districts were created outside the city limits of Houston, with the city floating bonds to start new water district sources. When a neighborhood is developed in a new water district, taxes are higher until additional homes are constructed to help pay down the debt. Therefore, older neighborhoods will have lower water district taxes than a newer home does in most cases.