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.

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.

How long do Mello-Roos taxes (bonds) last ?

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.

Where can I find the Mello Roos assessments for a particular home or property?

How can you look up the Mello Roos on a particular home? Go to the Orange County Property Tax web site here, 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).

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.

 

Ron Denhaan - Realtor Realty Executives OC Coastal (949) 290-3263 Ron@rondrealestate.com

 

 

Copyright © 2008  CDC Technology, Inc.  All rights reserved

Bookmark this page