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Laura Chang
MBA, REALTOR®
MBA, REALTOR®
Mello-Roos in California
A Mello-Roos District is an area where special tax is imposed on those real property owners within a community facilities district. It is an
area that has chosen to seek public financing through the sale of bonds for the purpose of financing certain public improvements and
services.
Mello-Roos allows for flexibility in the method of apportionment of taxes. Charges for this tax vary, but will never exceed the maximum
amount specified when the district was created. When there is a new purchase of a house in a subdivision, the maximum amount of the
tax will be specified in the public report.
Mello-Roos is used to make payments of principal interest on the bonds, and is collected with the general property tax bill. It is also
subject to the same penalties that apply to regular property taxes and it stays in effect until the bonds are paid off along with costs
incurred in collecting the special tax or so long as it is needed to pay the expenses of services - not to exceed 40 years. The tax is
assessed against the land - not on the value.
Although Proposition 13 tax limits are on the value of the real property, Mello-Roos taxes are equally and uniformly applied to all
properties. If you don't pay it on time, then the facilities district that obtained the lien can withdraw the assessment from the tax roll and
commence judicial foreclosure.
A Mello-Roos District is an area where special tax is imposed on those real property owners within a community facilities district. It is an
area that has chosen to seek public financing through the sale of bonds for the purpose of financing certain public improvements and
services.
Mello-Roos allows for flexibility in the method of apportionment of taxes. Charges for this tax vary, but will never exceed the maximum
amount specified when the district was created. When there is a new purchase of a house in a subdivision, the maximum amount of the
tax will be specified in the public report.
Mello-Roos is used to make payments of principal interest on the bonds, and is collected with the general property tax bill. It is also
subject to the same penalties that apply to regular property taxes and it stays in effect until the bonds are paid off along with costs
incurred in collecting the special tax or so long as it is needed to pay the expenses of services - not to exceed 40 years. The tax is
assessed against the land - not on the value.
Although Proposition 13 tax limits are on the value of the real property, Mello-Roos taxes are equally and uniformly applied to all
properties. If you don't pay it on time, then the facilities district that obtained the lien can withdraw the assessment from the tax roll and
commence judicial foreclosure.
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949.394.4535
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949.394.4535