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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 taxes and prefer to live in an area free of this
assessment. The following links will help you find homes for
sale that are free of Mello Roos assessments. In general,
older areas in each community have no Mello Roos assessments
while newer areas usually do.
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)
| 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 taxes (bonds) last ?
Mello-Roos 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 tax if needed.
I will be glad to
help you purchase a home in South Orange County. 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.
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