Anthem at Merrill Ranch CFD Tax: Florence Buyer Guide
Quick answer
How does the Merrill Ranch CFD tax work in Florence, AZ? Many homes in Anthem at Merrill Ranch in Florence sit inside a Community Facilities District (CFD). A CFD charges its own tax to pay for roads, water, sewer, and other infrastructure. That tax shows up on your property tax bill, so it goes into your escrow and your monthly payment. Your lender counts it when you qualify.
What is a CFD tax in Florence, AZ?
CFD stands for Community Facilities District. The Town of Florence says Arizona's CFD law, in effect since 1988, lets a town create a district to pay for public infrastructure like water, sewer, schools, and streets.
The cost falls on the land and owners inside the district, not on the whole town. That's the trade-off for new roads and pipes in a growing area.
I'm Andria Townsend, a loan officer in nearby San Tan Valley. CFD taxes are one of the first things Florence buyers should understand.
Is Anthem at Merrill Ranch in a CFD?
Yes, at least in large part. The Town of Florence lists two districts: Merrill Ranch CFD 1 and Merrill Ranch CFD 2. Both were formed in late 2005.
The town says Anthem includes Parkside and an active adult community (Sun City Anthem), and that Anthem covers land in both districts. The two districts don't overlap.
Not every Florence home is in a CFD. Check the specific parcel before you write an offer.
How much is the Merrill Ranch CFD tax?
The rate is set each year by the district board, and it can change. Merrill Ranch CFD 2's June 2, 2026 meeting minutes list a levy of $2.2939 per $100 of net assessed value for Fiscal Year 2025-2026.
The board voted on June 16, 2026 on the levy for the year ending June 30, 2027. Check the Pinal County Treasurer's bill for the exact home you want.
A rate "per $100 of assessed value" isn't the same as a rate on the price. Arizona taxes homes on assessed value, which is a smaller number than the sale price.
Does a CFD tax affect my mortgage approval?
Yes. It's part of your property taxes. Fannie Mae's guide counts your full housing payment, including taxes, insurance, and association dues, when it figures your debt-to-income ratio.
So two homes at the same price can qualify differently. One with a CFD tax and higher HOA dues needs more room in your budget than one without.
Fannie Mae also tells appraisers to consider how the market reacts to a CFD assessment when they pick comparable sales.
Why does this matter on a brand-new home?
On a new build, the first tax bill can be based on vacant land. Once the home is assessed, the bill can jump. If your lender used a low tax number, your escrow can come up short later.
I covered how that works in Pinal County Property Tax Rate Cut: Will Your Bill Drop?. And if a builder is pushing their own lender, read Do You Have to Use the Builder's Lender? first.
How do I check the CFD tax on a home?
- Look up the parcel on the Pinal County Treasurer or Assessor site
- Look for "Special District" lines on the tax bill
- Ask the builder or seller for the latest tax bill
- Read the CFD disclosure in your purchase documents
- Send it all to your loan officer before you lock in your budget
What does this mean for current homeowners?
If you already own in Anthem, your CFD tax is likely in your escrow now. If your payment went up, a higher tax bill could be the reason. Check your annual escrow statement.
What does this mean for sellers?
Buyers and their lenders will ask about it. Have your most recent tax bill ready. Clear answers help a deal move.
Thinking about other Florence options? See if a home is USDA eligible in Florence, and if you're a veteran, read about property tax for disabled veterans in Florence.
Frequently asked questions
What is a CFD in Arizona?
A Community Facilities District is a special taxing district that pays for public infrastructure like water, sewer, and streets in a defined area. Owners inside the district pay the tax.
Is Anthem at Merrill Ranch in a CFD?
The Town of Florence lists Merrill Ranch CFD 1 and CFD 2, and says Anthem covers land in both. Check each parcel to be sure.
Does the CFD tax go into my mortgage payment?
Yes, if you have an escrow account. It's part of your property tax bill, so it's part of your monthly escrow.
Does a CFD tax affect how much home I qualify for?
Yes. Lenders count your full housing payment, including property taxes, when they figure your debt-to-income ratio.
Can I pay off the CFD tax early?
That depends on the district. Some Arizona cities say there's no early payoff for their CFDs. Ask the Town of Florence about Merrill Ranch.
Subject to eligibility, credit approval, and program guidelines. Programs can change.
Have a question about your situation?
Every file is different. I'm happy to look at yours, answer questions, and help you plan your next step. No pressure.
Get pre-approved or ask Andria a question at andriatownsend.com or call 480-487-9166.
About the author: Andria Townsend is a Mortgage Loan Originator with NEXA Mortgage, LLC, based in San Tan Valley, Pinal County. She's lived in Arizona for 15+ years and helps buyers and homeowners across the state.
Andria Townsend, Mortgage Loan Originator, NMLS #2154631. NEXA Mortgage, LLC, NMLS #1660690. Equal Housing Opportunity. This is not a commitment to lend. All loans subject to credit approval, underwriting, and program guidelines.
Sources
- Town of Florence: Community Facilities District page
- Merrill Ranch CFD No. 2 Action Minutes, June 2, 2026
- Merrill Ranch CFD No. 2 Action Minutes, June 16, 2026
- Fannie Mae Selling Guide B4-1.4-09, Special Assessment or Community Facilities Districts
- Fannie Mae Selling Guide B3-6-02, Debt-to-Income Ratios
