A customer recently asked me this question.
When a developer is setting up the community (roads, lights, common areas, tennis courts, golf course, etc) he can pass the expense off to the first people that buy the home. Often times, these initial costs are so high that this developer could not possibly "sell" this to the initial buyer.
Therefore, the bill is oftentime paid on for a set number of years. This bill is included in the taxes of each homeowner in the community. It is basically a community development tax. Each homeowner is paying for those very nice amenities.
This CDD, because it is included in the real estate taxes, may be tax deductible. Please check with a tax accountant to verify.
Please call me 813-624-3332 with any questions that you may have. I would love to hear from you, Stephanie