Assessment Districts, CFDs & LMDs

In addition to the 1% property tax established by Proposition 13, some properties are subject to additional taxes or annual assessments. These apply to properties located within an Assessment District (AD), Community Facilities District (CFD), or Landscape Maintenance District (LMD). Properties built after 1985 commonly include one or more of these charges.

Assessment Districts and Community Facilities Districts are created before new homes are built to fund major infrastructure improvements such as roads, sewer systems, and water facilities. These improvements are financed through bonds, which are repaid through an annual AD or CFD charge listed as a separate line item on the property tax bill. These charges are due at the same time as regular property taxes and become delinquent after December 10 and April 10. Property tax bills must be paid in full, including any AD, CFD, or LMD charges. Partial payments are not accepted, and late payments may result in penalties and interest.

AD and CFD charges can be paid off at any time, which permanently removes them from future property tax bills. These charges are tied to the property and usually transfer to the new owner when the home is sold. Buyers and sellers may agree for the seller to pay off the remaining balance before closing, but this is optional and subject to negotiation.

Most properties in Tracy built after 1985 are also subject to an annual Landscape Maintenance District (LMD) charge, which helps pay for the maintenance of public landscaping. This charge appears as a separate line item on the property tax bill. LMD charges cannot be prepaid or removed and automatically transfer to the new owner when a property is sold.

For specific information regarding the amount of an AD, CFD or LMD charge on a particular property, the City has obtained the services of Goodwin Consulting Group and Wildan Financial to maintain this information. Please call Goodwin Consulting Group at (916) 561-0890 or Wildan Financial at 1-800-755-6864 for more information. Please do not call the City of Tracy or the County Assessor for information regarding AD, CFD, or LMD charges. All such inquiries should be directed to Goodwin Consulting Group or Wildan Financial.