The Howard Jarvis Administration was the driving force in implementing Proposition 13 which put a cap on property taxes in the state of California. As a result, of Proposition 13 California Homeowners were forced to find different ways to fund government community improvements in their communities like streets, schools, parks, etc. The Mello-Roos Community Facilities Act of 1982 was implemented by the California legislature, the Act created Community Facilities Districts (CFD’s) to be established as a means of getting this critical neighborhood funding.
Each Community Financial District has is different Mellow-Roos Property Taxes. Normally|Generally|Typically, an adopted formula that applies to the home size or lot size is utilized to determine the amount of particular assessment. So a smaller house in a community will pay less than a larger house in the same neighborhood. Often, the special property taxes and assessments do not exceed 1% to 1.5% of the market value of new homes. Also, the complete quantity of all yearly property taxes normally do not exceed 2% to 2.5% of the house’s taxable property base value. If you take action to lower your taxable base value meaning, your property taxes you will save a substantial amount of money especially, if you have Mellow-Roos Taxes on your home because of the higher percentage in property taxes you pay. Most likely you will save thousands every year because even though the percentages are low values in California are high enough to make them significant.
In California thousands of homeowners in many urban areas have lost in excess of $200,000 in market value on their houses and paying 1.25% in property taxes they will save at least $2,500 per year for every year they keep their house! Yet, that same taxpayer at a 2% property tax rate based on of Mellow-Roos taxes will save over $4,000 every year in property taxes! If you are paying Mellow-Roos and have lost $200,000 since you bought your house and let’s say you plan to own your residence for the next 10 years, you will save $40,000! Don’t settle for Proposition 8 the temporary decline in property taxes, its only temporary. Learning to PERMANENTLY lower your taxable base value in California is the key to saving thousands over the course of your home ownership which is disclosed in the California Little Black Book.
Most often Mellow-Roos Property Taxes are applicable to newly built communities such as large scale Planned Unit Developments (PUD) where there have been many new houses built in a short period of time and the property taxes are needed to establish city services. Ive seen Planned Unit Developments that had more than 5,000 homes built! So, the county and city governments need to scramble for funds to establish the roads, sewage systems, schools, recreation centers, parks and so much more. Prior to purchasing a residence with Mellow-Roos property taxes you will be notified in the beginning negotiation stages of acquiring the home and during escrow that these property taxes apply. You will never be blind sighted by Mellow-Roos Taxes, it is required that you are informed before purchasing.
About the Author: Valerie Faltas, Property Tax Expert has been involved in all facets of real estate for over ten years including assessments, appraisals, estates and trusts, investing and much more. She is a Certified Property Tax Appraiser, Licensed Residential Appraiser and a member of the International Association of Assessment Officers. As a real estate investor and adviser she is well versed in all aspects of real estate. To contact Valerie Faltas go to her website: www.propertytaxlittleblackbook.com.