When Proposition 13 passed in 1978, it extremely limited the capacity of local governments to use property taxes to construct public facilities and services. As a result, California Residents had to find different ways to finance public improvements in their communities such as roads, schools, parks, etc. The Mello-Roos Community Facilities Act of 1982 was implemented by the State legislature, the Act created Community Facilities Districts (CFD's) to be put into place by local government agencies as a means of getting this critical community financing.
The amount of Mellow-Roos Property Taxes is different from one CFD to another. Normally, an approved method that relates to the size of the house (square footage or lot size) is used to determine the amount of specific assessment. Often, the special property taxes and assessments do not exceed 1% to 1.5% of the market value of new homes. Additionally, the complete amount of all annual property tax usually does not go above 2% to 2.5% of the house's taxable property base value. So if you can to lower your taxable base value or in other words, your propety tax you will save a significant amount of money if you have Mellow-Roos Taxes on your house since of the higher percentage in property taxes you pay.
In California thousands of taxpayers in many urban areas have lost in excess of $200,000 in market value on their homes 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 because 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 home and let's say you plan to own your home 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.
Generally Mellow-Roos Property Taxes are applied to recently built neighborhoods like sizable Planned Unit Developments (PUD) where there have been numerous residences built in a short period of time and the taxes are needed to create city services. Ive seen Planned Unit Developments that had more than 4,000 houses built! So, the county and city governments need to find financing to build the roads, sewage systems, schools, recreation centers, parks and so much more. Prior to acquiring a house with Mellow-Roos property taxes you will be notified in the beginning negotiation stages of acquiring the house and while in escrow that these property taxes apply. You won't be blind sighted by Mellow-Roos Taxes, it is required that you are notified before buying.
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 advisor she is well versed in all aspects of real estate. To contact Valerie Faltas go to her website: www.propertytaxlittleblackbook.com.
The amount of Mellow-Roos Property Taxes is different from one CFD to another. Normally, an approved method that relates to the size of the house (square footage or lot size) is used to determine the amount of specific assessment. Often, the special property taxes and assessments do not exceed 1% to 1.5% of the market value of new homes. Additionally, the complete amount of all annual property tax usually does not go above 2% to 2.5% of the house's taxable property base value. So if you can to lower your taxable base value or in other words, your propety tax you will save a significant amount of money if you have Mellow-Roos Taxes on your house since of the higher percentage in property taxes you pay.
In California thousands of taxpayers in many urban areas have lost in excess of $200,000 in market value on their homes 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 because 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 home and let's say you plan to own your home 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.
Generally Mellow-Roos Property Taxes are applied to recently built neighborhoods like sizable Planned Unit Developments (PUD) where there have been numerous residences built in a short period of time and the taxes are needed to create city services. Ive seen Planned Unit Developments that had more than 4,000 houses built! So, the county and city governments need to find financing to build the roads, sewage systems, schools, recreation centers, parks and so much more. Prior to acquiring a house with Mellow-Roos property taxes you will be notified in the beginning negotiation stages of acquiring the house and while in escrow that these property taxes apply. You won't be blind sighted by Mellow-Roos Taxes, it is required that you are notified before buying.
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 advisor she is well versed in all aspects of real estate. To contact Valerie Faltas go to her website: www.propertytaxlittleblackbook.com.
About the Author:
Check out the free ebook written by Valerie Faltas, Property Tax Expert on how you can save money! property tax, lower property tax, property tax information, assessment, mellow-roos taxes, prop 13, purchase home
