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Mello Roos
Taxes and Assessments
What is
Mello Roos?
Mello-Roos is the common name for the Community
Facilities District Act, enacted by the California Legislature
in 1982. The name comes from its co-authors, Senator Henry
Mello of the Monterey area and Los Angeles assemblyman Mike
Roos. Mello-Roos enabled “Community Facilities Districts”
(CFD’s) to be established by local government agencies as a
means of obtaining community funding. When California
Proposition 13 passed in 1978, it limited the ability of
local governments to use property taxes to construct public
facilities and services. As a result, new ways to fund public
improvements in respective locales were considered. Mello Roos
assessments are typically found in newer home developments.
Older homes (usually those built prior to 1990) have no Mello
Roos assessments, even though newer homes in the same city may
have them.
Mello Roos
District
A Mello-Roos District is an
area where a special tax is imposed on those real property
owners within a Community Facilities District. This district
has chosen to seek public financing through the sale of bonds
for the purpose of financing certain public improvements and
services. These services may include streets, water, sewage
and drainage, electricity, infrastructure, schools, parks and
police protection to newly developing areas. The tax you pay
is used to make the payments of principal and interest on the
bonds. Mello-Roos taxes cannot be deducted if they are
assessed to fund local benefits and improvements that tend to
increase the value of your property. Mello-Roos taxes may
appear on annual county property tax bill with other
deductible property taxes. That does not mean one can deduct
the Mello-Roos taxes. One may only be able to deduct a portion
of the total property tax shown on your bill.
Search for homes with No Mello Roos
Many people do not like Mello
Roos fees, and prefer to live in an area free of this
assessment. The following links will help you find homes for
sale in Orange County, CA that are free of Mello Roos assessments. In general,
older areas in each community have no Mello Roos assessments
while newer areas usually do. Search for homes with no Mello
Roos in Aliso Viejo, Coto de Caza, Dana Point, Irvine, Tustin,
Newport Coast, Mission Viejo, Lake Forest, North Tustin, Rancho Santa
Margarita, Robinson Ranch, San Clemente, and San Juan
Capistrano. Also Brea, Anaheim Hills, Yorba Linda, Fullerton,
and Orange. Wagon Wheel homes
have subsidized Mello Roos assessments, so the fees are much
lower than in comparable neighborhoods. Many homes in Coto de
Caza have no Mello Roos. The newer homes that do have it, have
a subsidized Mello Roos, like Wagon Wheel so it is very low.
 If
you are looking for homes with no Mello Roos and no HOA
dues, check the links here
How is
Mello Roos paid?
It is attached to your property
tax bill if your home is in a Mello Roos District. This is an
example of Mello Roos assessments on a property tax bill (highlighted in yellow).
Mello Roos is paid twice per year with your property tax bill.
| Parcel No.:
xxx-xx-xxx |
Tax
Type |
Description/Service Agency |
Phone No. |
Tax Rate
(33-001) |
Value Base |
Amount
(Rate x Value) |
|
| A1 |
BASIC LEVY RATE |
|
1.00000 |
$981,617.00 |
$9,816.17 |
| A1 |
CAP USD ID1 99 BD 01 |
|
0.00468 |
$981,617.00 |
$45.93 |
| A1 |
METRO WATER D-MWDOC |
|
0.00450 |
$981,617.00 |
$44.18 |
| A1 |
CAP USD ID1 99 BD 00 |
|
0.00293 |
$981,617.00 |
$28.76 |
| A1 |
CAP USD ID1 99 BD 02 |
|
0.00258 |
$981,617.00 |
$25.32 |
| ***
SPECIAL ASSESSMENT USER FEES*** |
| BA |
MOSQ,FIRE ANT ASSMT |
(800)273-5167 |
|
|
$5.14 |
| B3 |
VECTOR CONTROL CHG |
(800)273-5167 |
|
|
$1.92 |
| C7 |
MWD WATER STDBY CHG |
(866)807-6864 |
|
|
$10.08 |
| Q4 |
MELLO-ROOS Q4 |
(949)858-0277 |
|
|
$1,839.94 |
| Q6 |
MELLO-ROOS Q6 |
(949)858-0277 |
|
|
$2,220.76 |
|
|
|
|
Total
Tax: |
$14,038.20 |
|
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How long
do Mello-Roos fees (bonds) last and how can I find out how
many years are left on a bond?
Mello-Roos fees
may be levied only as long as they are needed to pay off the
bonds. The bonds average between 15 to 40 years, depending on
the community. The bad news is, some of the districts
have the right to renew the Mello-Roos assessment, if needed.
The only way find out the remaining duration of a bond is to
call the phone number for the Mello Roos district. This is
listed on the tax bill (see example above).
Where can
I find the Mello Roos assessments for a particular home or
property?
How can I look
up the Mello Roos on a particular home or how can I find out
if a house has a Mello Roos fee? ? Go to the Orange
County Property Tax web site
and key in the address or parcel number. Click on the parcel
number link a few times until you see a link labeled
"view original bill". You will see any Mello Roos
assessments, if they apply, on this bill (see example of bill,
above). You can also call or write me with the address or MLS
number of the property and I'll be glad to check for
you!
I will be glad to
help you purchase a home in Orange County, CA. I can provide
you with property tax, Mello Roos, and homeowner association
(HOA) dues information for any community or individual
property. Call me at (949) 290-3263. If you are looking for a
home with low or no HOA dues or homeowner's association,
please call me. I will have a new web page on the site very
soon!
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