What is a CFD special tax?
A CFD special tax is levied on taxable property within a district to fund public facilities and/or services.
When did the use of CFDs start, and why?
After Proposition 13 passed in 1978, California cities were restricted in how they could fund public services and infrastructure. To address this, the Mello-Roos Community Facilities Act of 1982 was created, allowing local governments to form Community Facilities Districts (CFDs) if approved by two-thirds of voters or landowners.
Why does San Marcos use CFD special taxes?
San Marcos receives one of the lowest shares of property tax revenue in the county—about $7 per $100 of property taxes paid. Additionally, voters approved Proposition R in 1988, requiring adequate infrastructure and services for new development. CFDs were created to provide funding for these public needs.
How does a CFD special tax work?
CFD taxes are usually added to the annual property tax bill. Taxes for facilities CFDs are used to repay bonds issued for infrastructure such as roads, utilities, and public safety buildings. Taxes for services CFDs fund ongoing services such as public safety, lighting, landscaping, parks, and trail maintenance.
What do CFD special taxes in San Marcos pay for?
The City uses CFDs to finance public facilities, ongoing services, or both. Each CFD funds specific improvements or services.
Is my property in a CFD?
Check the “Fixed Charge Assmts” section of your property tax bill for any line items that include “CFD.” Then compare them to the City’s list of Community Facilities Districts to learn more.
Do CFD special taxes have a maximum amount?
Yes. Each CFD has a maximum special tax rate that cannot be exceeded. The actual amount billed each year may be lower depending on the district’s financial needs.
Do CFD maximum special taxes increase annually?
It depends on the CFD. Most facilities CFDs do not increase annually. Service CFDs may increase up to 2% or by the Consumer Price Index (CPI). No property can be taxed above its maximum rate.
Can CFD special taxes decrease?
Yes. A CFD may charge less than the maximum rate or less than the previous year's amount if revenues exceed expenses.
When does the CFD special tax expire?
Service CFDs (for lighting, landscaping, police, fire, etc.) do not have an expiration date. For facilities CFDs, taxes typically end once bonds are paid off, although the authorized tax period may extend beyond bond repayment.
When and how are CFD special taxes collected?
CFD taxes are usually collected by the San Diego County Tax Collector as part of your property tax bill. They appear under “Fixed Charge Assmts.” In some cases, the City may directly bill property owners.
What is the amount of the CFD special tax for the current fiscal year?
Visit the San Diego County Property Tax Services website and enter your Assessor’s Parcel Number to view current special tax amounts.
What happens if I don’t pay my property tax bill on time?
CFD taxes are subject to the same penalties and interest as regular property taxes. If there are outstanding bonds and taxes become delinquent, the City may initiate foreclosure after required notifications.
Can the CFD special tax be prepaid?
Yes. Contact the City’s Finance Department at (760) 744-1050 ext. 4506 (Option 4) for prepayment information.
I want to buy property in San Marcos. How much will the special taxes be?
Visit the County’s Property Tax Services website to see current CFD taxes for a property. Note that the amount on the bill may not be the maximum possible tax. To find the maximum rate, visit the City’s CFD information page.
A recorded document says my property is in a “future annexation area” of a CFD. What does that mean?
This means the property may be added to a CFD in the future if it is developed or redeveloped.
My property receives a welfare exemption under Revenue & Taxation Code Section 214(g). Is it subject to CFD special taxes?
For CFDs formed on or after January 1, 2020, properties with this exemption are not taxed—unless bonds are outstanding and the property was taxed before receiving the exemption.
If you have additional questions about CFD special taxes, contact the CFD administrator at (760) 744-1050 ext. 4506 (Option 4).