What is a CFD tax in Arizona?

How does a CFD work?

According to the Arizona Department of Real Estate (ADRE), CFDs are special taxing districts that use bonds to finance building, buying, operating, and maintaining public infrastructure that benefits property owners in the district, such as roads, public sewer, utility infrastructure, and parks. A CFD has a governing board, which may be the city council acting as the board. In Mesa, the city says its CFDs were formed at the request of property developers.

What CFD charges show up on a tax bill?

Using Mesa as an example, the city explains that homes in its CFDs carry two CFD lines on the Maricopa County property tax bill:

• Assessment Area charge. A flat assessment on each parcel, amortized over 25 years and listed as "(CFD name) Assessment Area #." It can be paid off in one lump sum at any time; partial payoffs aren't allowed.
• CFD tax. An operations and maintenance charge plus a bond charge, listed as "(CFD name) CFD." It's reset every year, continues indefinitely, and can't be paid off.

Sources: City of Mesa, Community Facility Districts (retrieved September 28, 2026; FY2025/26 resolutions listed), and Maricopa County, 2024 Tax Rates. Rates can change every year. The tax statement for a specific parcel is the source of truth.

Are there other special-district lines to look for?

Yes. ADRE notes that homeowners in the Central Arizona Groundwater Replenishment District (CAGRD) pay an annual assessment collected through the county property tax process, based on groundwater served to member homes. Maricopa County's tax-rate list also includes many other districts across the county.

How can I tell if a home is in a CFD?

• The detailed property tax statement from the county treasurer or assessor.
• The Public Report for a new subdivision, which covers taxes and assessments. ADRE's online database has reports from January 1, 1997 on.
• The city's CFD page or map, such as Mesa's property search tool.
• Required disclosure. For districts approved after August 9, 2017, sellers who must obtain a subdivision public report have to disclose the district, its purpose, the estimated tax rate, and an estimated annual tax amount (A.R.S. §48-708(D)).

What does a CFD mean when buying or selling?

The lien is on the property, not the owner. Mesa says it doesn't require its assessment to be paid off when a home is sold or refinanced, but the new lender or title company may require a payoff before financing. Ask for a payoff quote early if you're buying or selling in a CFD.

Does Arizona's 5% value limit cap a CFD tax?

Not fully. Since tax year 2015, the value used for property taxes generally can't rise more than 5% a year (Arizona Constitution, Article 9, Section 18). But a district's tax rate can change each year, and the Constitution's 1% cap on residential taxes doesn't apply to bond-related taxes or special district levies. So the bill can still rise.

How do I budget for CFD charges?

Count special-district charges in your monthly budget along with HOA dues and insurance. A search that uses each home's actual property taxes shows the difference between otherwise similar homes.

Related: Eastmark CFD charges in Mesa · Mesa · Queen Creek · Buckeye · Goodyear · San Tan Valley · how much house can I afford? · Mesa homes near $2,500/mo

General information, not tax advice. Confirm charges for a specific home on its tax statement.

More Arizona home buyer questions · Calculators · Homes by monthly budget · All Arizona cities

Sources

• Arizona Department of Real Estate and Arizona REALTORS®, Buyer Advisory (updated January 2025)
• City of Mesa, Community Facility Districts (retrieved September 28, 2026; FY2025/26 resolutions listed)
• Maricopa County, 2024 Tax Rates (tax year 2024)
• Arizona Revised Statutes §48-708, community facilities district disclosures (subsection D)
• Arizona Constitution, Article 9, Section 18 (residential property tax limits)
• Arizona Department of Real Estate, Property Buyer's Checklist

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