Saturday, September 16, 2006

Understanding Mello-Roos Tax

A Mello-Roos District is an area where a special tax is imposed on property owners residing within a Community Facilities District. The 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.
By purchasing an interest in a subdivision within a Community Facilities District you can expect to be assessed for a Mello-Roos tax which will typically be collected with your general property tax bill.
When buying or selling a home in a newer subdivision, be sure and investigate whether or not there will be a Mello-Roos tax! It might impact your decision as to which home to purchase and where.

Janis Calkins
(805) 218-7016


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