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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.
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Did You Know?
Proposition 13 does not restrict Mello-Roos taxes.
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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.
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