Public Improvement Districts
Overview
A Public Improvement District (PID) is an economic development tool that permits the financing of public improvements and supplemental services that are determined by the City of Austin to confer a special benefit on a geographically defined area within its corporate limits or its extraterritorial jurisdiction. Council Resolution 20200220-015, the City’s PID Policy, governs the creation, operations and dissolution of PIDs in Austin. There are three types of PIDs within the City of Austin, Maintenance and Operations PIDs, Development PIDs and Tourism PIDs.
The State of Texas grants municipalities and counties the power to create PIDs under Texas Local Government Code (LGC), Chapter 372. The city or county may initiate or receive a petition from property owners requesting the 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.
Maintenance and Operations PIDs
A Maintenance and Operations (M&O) PID is a special-purpose district that allows property owners within a defined geographic area to fund enhanced services and public improvements that directly benefit the properties within the district. M&O PIDs support economic development by strengthening commercial areas, stabilizing business districts, and promoting continued growth along key commercial corridors. Assessment revenues are used to provide services such as enhanced public safety and health efforts, sidewalk and public space cleaning, beautification and landscaping, minor capital improvements, and marketing or events that promote the district.
The Austin City Council has established three M&O PIDs at the request of property owners. State law requires that more than 50 percent of property owners within the proposed boundaries, measured by the number of parcels or total taxable value, consent to the creation or continuation of a PID. Once a district is formed, the City Council is responsible for approving the creation and reauthorization of the district, designating a managing organization, setting the annual assessment rate, approving the annual assessment roll, and reviewing and approving each district’s annual budget and service plan.
In 2020, the Austin City Council adopted the City of Austin PID Policy (Resolution No. 20200220‑015), which outlines the standards, requirements, and procedures for creating new Development or Maintenance and Operations PIDs. If you are interested in creating one, please review the PID Policy closely to confirm eligibility. For additional information contact: (512) 974-2590 or email pidsidtaxes@austintexas.gov.
- Downtown Public Improvement District
The Austin Downtown Public Improvement District (DPID), created in 1993 and reauthorized several times since, covers downtown from I-35 to San Antonio Street and from 15th Street to Riverside Drive and Barton Springs Road. Learn more about the property roll and assessments, Council actions and the development partner.
- East 6th Street
The East 6th Street PID, created in 2004 and reauthorized in 2009, 2014, 2019, and 2024, covers the East 6th corridor from Congress Avenue to I-35, generally between 5th and 7th Streets, including the intersecting north–south streets. Learn more about the property roll and assessments, Council actions and the development partner.
- South Congress
The South Congress PID was created in 2014 and reauthorized in 2019 and 2024. Its assessment rate is up to $0.20 per $100 of real property improvements, with exemptions for hospitals, schools, religious organizations, nonprofits, public facilities and homesteads.
Tourism PID
The Austin Tourism Public Improvement District (ATPID) was officially established on December 12, 2024, and went into effect on January 1, 2025. This is a 10-year district requested through petition of hotel owners in Austin. It’s funded via a special assessment levy on hotels with over 100 rooms in the City of Austin limits. The annual assessment rate for all hotel properties within the ATPID is two percent (2%) of gross taxable nightly room rental revenue. The purpose of the ATPID aims provide funding for special supplemental services relating to increased marketing, sales initiatives and incentives to retain and secure existing and new meetings, conventions, sporting and other events at the Austin Convention Center and the Palmer Event Center. It also aims to provide sales incentives to retain and secure additional citywide, transient and group business at individual District hotels. The ATPID will also fund research to assess the impact of its initiatives, with the purpose of increasing the demand for hotel activity within the District. The ATPID is managed by Visit Austin.
Development PID
A Development PID is a designated area established to support and encourage economic development. It provides a mechanism for financing public infrastructure improvements—such as roads, utilities, and other essential facilities—that directly enhance and promote development within the defined district. The costs of these improvements are allocated to the property owners within the PID boundaries who receive specific benefits from the projects.
The City currently has three Development PIDs: Whisper Valley, Estancia, and Indian Hills.