Mello-Roos Taxes
Mello-Roos
taxes are assessed to special tax districts, known as
Mello-Roos Districts or Community Facilities Districts,
for the purpose of financing public services and/or
facilities including streets, police protection, fire
protection, elementary schools, parks, libraries,
museums, and cultural facilities.
California State Senator Henry Mello and Assemblyman
Mike Roos spearheaded the successful passage of the
Mello-Roos Community Facilities District Act in 1982.
The Act passed in response to Proposition 13 (enacted in
1978), which limited the ability of local governments
and developers to finance new projects.
Did You Know?
Proposition 13 does not restrict Mello-Roos taxes.
|
Mello Roos District
The Mello-Roos act authorized any county,
city, special district, school district or joint powers
of authority to create a Mello Roos District with
approval of a two-thirds margin of qualified voters in
the district.
Property Owners
The Mello Roos District can issue bonds to pay for
public improvements. The district's property owners are
responsible for payment of a "special tax" to repay
these bonds. The act allows for considerable flexibility
on how the special tax is calculated. The calculation
often takes into account property characteristics such
as square footage of the home and parcel size.
Typically, the tax is included with your general
property tax bill.
Time Limit
The special Mello-Roos tax stays in
effect as long as needed to repay the principal and
interest on the special bond along with any reasonable
administrative costs. The tax may not stay in effect for
a period longer than 40 years.
Property Sale
An increased value of the property does not affect the
amount of the tax when property is sold. |