Mortgage Lender Serving Melissa, TX

The City of Melissa says it contracts with the Collin Central Appraisal District for appraisal and with the Collin County Tax Office for assessing and collecting property taxes. Its tax page lists four property tax entities: the City of Melissa, Collin County, Collin County Community College and Melissa ISD. The appraisal district's own list of taxing units also includes municipal utility districts and other special districts as separate units, so a parcel inside one of those would carry a charge that is not on the city's short list. The parcel's own tax record matters more than a citywide summary.

Melissa also has an extraterritorial jurisdiction, the band of land outside the city limits. The city's engineering design manual says it applies to the city and its ETJ. State law says that including an area in a city's ETJ does not by itself authorize the city to tax it. So an address near Melissa can be inside the city limits or outside them, and the difference decides whether City of Melissa property tax is on the bill. Ask for that answer in writing before you rely on a payment estimate.

The city's homestead exemption FAQ, last revised in August 2023, describes the mechanics. Only a principal residence qualifies, the owner must occupy the home as a principal residence on January 1 of the tax year, and general applications go to the appraisal district between January 1 and April 30, with early applications not accepted. It also says a buyer who purchased during a year waits until the following year to file, and that the appraisal district mails new homeowners an application in January. The city sets its own exemption percentage, which can change, so we do not quote it here.

For the loan, that timing means your first tax bill after closing may not reflect a homestead exemption, and the seller's exemption does not transfer to you. The escrow estimate we build should not assume one until it is in place. Ask the appraisal district how the timing works for your closing date, and remember that rules can change.

The Finance section of the city's website has a page on public improvement districts. It says a PID is an area where certain improvements are paid for through a special assessment charged only to properties inside the district, that each PID has a Service and Assessment Plan, and that annual PID assessments are separate from City property taxes. When we reviewed it, the page posted one preliminary service and assessment plan, dated June 23, 2026, for a district called Vineyard Hills Estates. A preliminary plan is a proposal whose terms can change, so we do not quote its figures.

We could not confirm from the city's pages how common MUDs or PIDs are across Melissa, so treat each lot on its own. Texas law has the seller give written notice before a binding contract: Section 5.014 of the Property Code covers a PID, and the Water Code covers a district such as a MUD, where the buyer may terminate if the notice is not timely. Send us any notice you receive. A district charge can also change the loan amount you qualify for, because Fannie Mae's Selling Guide counts special assessments in monthly housing expense.

The city's Utility Billing Department manages water, sewer and solid waste services for the City of Melissa, and the North Texas Municipal Water District's own list names the City of Melissa as a customer. Separately, North Collin Special Utility District, whose office is on Sam Rayburn Highway in Melissa, describes itself as providing drinking water to rural north Collin County since 1970 and lists a service area on its website. Its new-service request calls for an application, a right-of-way easement and a copy of the deed or lease.

So the water provider depends on the address. Ask who supplies water and who handles sewer, and what a transfer of service requires, before you close.

Melissa ISD is the school district named on the city's tax page, and the City of McKinney's school zones page also names Melissa ISD, a reminder that district boundaries do not follow city lines. Each school district is its own taxing unit. If schools matter to your decision, ask Melissa ISD to confirm the district for the exact address.