Have you ever heard of Senator Henry Mello or Assemblyman Mike Roos? In 1982, they co-authored the Community Facilities District Act, otherwise known as Mello-Roos.
After Prop 13 was passed in 1978, which limits the ability of local governments to use property taxes to construct public services and facilities, i.e., infrastrusture, new ways to fund public improvements needed to be found.
Mello-Roos are a special property tax on real estate imposed on owners within a Community Facilities District to help develop infrastructure in newly developed areas. These areas are very common in Southern California. This infrastructure includes:
- Streets
- Water
- Sewage and drainage
- Electricity
- Schools
- Parks
- Police protection
The Mello-Roos tax is used to pay the principal and interest on the bonds sold to finance the public improvements and services listed above.
This tax is in addition to the regular county tax and is tax deductible in some cases, but not others.
***Consult your tax advisor***
One thing to keep in mind is that although Mello Roos have a term, i.e. 20yr, 30yrs, etc, they can be renewed. Any questions? Please feel free to email me.
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