If two new-construction homes in Denton County list for the same price per square foot, most buyers assume they cost the same to own. That assumption breaks down along a two-mile stretch of I-35W in southwest Denton, where two of the county's biggest master-planned communities sit almost next to each other, share a builder pool, and will eventually carry very different tax bills for reasons that have nothing to do with the homes themselves.
One of those communities is already selling. The other has a tax district that legally exists, is authorized to bill homeowners for decades, and as of early 2026 had not sent anyone a bill at all.
Same Corridor, Different Clock
Hillwood's Landmark development sits at the corner of I-35W and Robson Ranch Road, on land the Perot family originally purchased in 1987 as Hunter Ranch. Construction started in September 2024. The opening phase includes 747 single-family lots built by nine Dallas-Fort Worth builders: American Legend Homes, Coventry Homes, David Weekley Homes, Drees Custom Homes, Highland Homes, M/I Homes, Perry Homes, Toll Brothers, and Tri Pointe Homes. Prices in Phase 1 range from the mid-$400s to over $1 million. Model homes opened in spring 2026, and the first move-ins began this past summer. The community is zoned to Denton ISD and centers on Pilot Knob, a 900-foot sandstone formation that happens to be the highest point in the city.
Landmark also landed Denton's first H-E-B, a detail that mattered enough to draw a competing bid from a developer across the road in Argyle. Hillwood's own materials now put the grocery store's opening at early 2027, later than the original 2026 timeline discussed when the project was announced. That slip is worth flagging because it is a small preview of a larger pattern in this corridor: announced timelines move, and so do the costs tied to them.
A few miles away, on similarly scaled acreage, sits Cole Ranch. At 3,100 acres, it is almost the same footprint as Landmark's 3,200, developed by Johnson Development alongside Cole Ranch Co. and Denton Range on land that belonged to the Cole family since the 1930s before the City of Denton annexed it in 2006. Cole Ranch is planned around roughly 4,400 homes at full buildout, with about 1,200 acres, nearly 40 percent of the site, set aside as preserved open space and 26 miles of trails winding through it. That is well above the 15 to 25 percent green space typical of North Texas master-planned communities.
Here is the part that does not show up in a listing photo or a builder's price sheet. Cole Ranch has its own special taxing entity, the Cole Ranch Improvement District No. 1, created by the Texas Legislature when the community was established. The district's own public records page states plainly that because the district was recently organized and development has not yet begun, most of its financial documents, including tax rate information, are not yet available. As of early 2026, no builders or prices had been announced for Cole Ranch, and sales were not expected to start until 2027.
That gap between "authorized to tax" and "has actually taxed" is the thing worth understanding before anyone signs a contract in this part of the county.
What "Hasn't Levied Yet" Actually Means
A special district like the CRID does not have to be actively billing homeowners to exist. It only needs to be created, which happens through the Legislature or a local petition process, long before the first house closes. The rate gets set later, once the district's board adopts a budget and starts repaying the infrastructure bonds that funded the roads, water, and drainage the development needed.
Documentation from the CRID's creation references a rate around 55 cents per $100 of assessed value once the district begins levying. Layered on top of the roughly 2.0 percent effective rate that already applies inside the City of Denton, that would push the total toward about 2.5 percent. On a $450,000 home, that is the difference between an estimated $7,300 annual tax bill and one closer to $9,800, once the levy actually starts.
Nobody buying at Cole Ranch today can quote that second number as a certainty, because sales have not opened and no one has closed a house there yet. But the rate ceiling already exists in the district's founding paperwork. It is not a hypothetical. It is a number that was decided before the first foundation was poured, waiting for the district's board to activate it.
Compare that to a community like Landmark, where the tax structure is already established and running, or to communities elsewhere in Denton County that skip a special district entirely. Listings for places like Kings Way, near Loop 288, and Chatham Reserve in Providence Village both advertise a flat tax rate with no MUD or PID attached at all, closer to 1.9 percent. A buyer comparing an advertised price at Cole Ranch against one at Kings Way today is not comparing two finished numbers. They are comparing a rate that is fixed against a rate that is scheduled to appear.
The Other Number That Isn't Fixed Either
Special districts get most of the attention, but they are not the only moving piece in a Denton County tax bill. School district rates make up the largest single share of most bills in the county, typically 55 to 65 percent of the total, and they are set through public votes that can change year to year.
In November 2025, Denton ISD voters approved a five-cent increase to the district's maintenance and operations rate, with roughly 53 percent support, reversing six consecutive years of rate decreases. The increase is projected to generate about $26 million annually, split roughly between teacher salaries, safety and security, and academic programs. Northwest ISD, which also serves parts of the county's fast-growing southwest corridor, passed its own increase of three cents in the same election.
Argyle ISD went the other direction. Voters there rejected a rate increase in November 2024, and the district is managing on its existing rate, with its FY 2025-26 budget projecting a $1 million surplus rather than a shortfall.
Meanwhile, the City of Denton has raised its own rate for three consecutive years, from about 56 cents per $100 in 2023 to just under 60 cents in 2025, funding a $2.55 billion budget approved in September 2025. Denton County's rate moved the opposite way, dropping slightly for tax year 2025 to its lowest level since 1986, helped by the fact that the county carries no hospital district or community college tax, unlike neighboring Dallas, Harris, or Bexar counties.
Stack all of that against a special district that has not started billing yet, and the lesson is the same one twice over. A tax rate quoted today in Denton County is a snapshot of several clocks running at different speeds, not a fixed number a buyer can lock in by comparing two listings side by side.
The One Document That Protects You From All of This
Texas law gives buyers a specific tool for exactly this situation. Under Section 49.452 of the Texas Water Code, if a property sits inside a district like a MUD or an improvement district, the seller must deliver a written Notice to Purchaser before the buyer signs the contract, disclosing the district's tax rate, outstanding bond debt, and any standby fees. If that notice is not delivered on time, the buyer can terminate the contract at any point up to closing. If the seller delivers it late but before closing and the buyer proceeds anyway, that right disappears.
For a community like Cole Ranch, where the CRID exists but has not yet set a rate, the notice a future buyer receives may show authorization without an active number, which is not the same as no cost at all. Reading that document carefully, and asking directly whether a district has levied yet or is only authorized to, is the single most useful question a buyer can bring into a new-construction contract anywhere in this corridor.
A few questions worth asking before you sign in southwest Denton County:
- Has this specific district levied a tax yet, or only been authorized to?
- What rate does the district's founding documentation reference once it does levy?
- Does the county appraisal district's online record for this address list the special district at all yet?
- Has the ISD serving this address had a recent VATRE, and which direction did it go?
- What does the Notice to Purchaser say, and did I receive it before signing?
A Quick Comparison
| Community | Acreage | Status (as of 2026) | Tax district | Base ISD |
|---|---|---|---|---|
| Landmark by Hillwood | 3,200 | Selling now, first move-ins summer 2026 | Established, already active | Denton ISD |
| Cole Ranch | 3,100 | Sales expected 2027, no builders announced | CRID created, not yet levying | Denton ISD |
FAQ
Does a homestead exemption reduce a special district's tax rate? No. A homestead exemption can reduce the school district, city, and county portions of a bill, but special districts like MUDs and improvement districts are independent taxing entities and typically fall outside standard exemptions.
Will a district's rate eventually go down? Often, yes. Rates in newer districts tend to be highest while infrastructure bonds are still being repaid and fewer homes are sharing the cost. As more houses are built and the tax base grows, the rate frequently declines, though the timeline varies by district.
Where can I check whether a specific address has a special district attached? The Denton Central Appraisal District lists every taxing entity tied to a property, and Denton County's own truth-in-taxation page publishes adopted rates by entity each year. For a district still in its early stages, the district's own public records page is often the most current source, even before the appraisal district catches up.
Comparing new construction across Denton County means comparing more than a price tag. It means asking which clock each community's tax bill is actually running on, and whether that clock has started yet. If you are weighing options along the I-35W corridor or anywhere else in the county, Simms Frontier Real Estate can walk through the specific district paperwork, current rates, and disclosure timeline for any address you're considering before you sign anything.
