Lower Mellow-Roos Property Tax
Proposition 13 was passed in 1978 by the Howard Jarvis Administration to limit propety taxes in the state of California. Proposition 13 extremely controlled the capacity of government to use property taxes to build public improvements and services. As a result, California Residents had to find new methods to finance government community facilities in their communities like streets, schools, parks, etc. The Mello-Roos Community Facilities Act of 1982 was enacted by the California legislature, the Act enabled Community Facilities Districts (CFD’s) to be put into place as a means of getting this crucial neighborhood financing.
Each Community Financial District has varies Mellow-Roos Property Taxes. Normally|Generally|Typically, an accepted method that applies to the home size or lot size is used to ascertain the quantity of specific assessment. So a smaller residence in a community will pay less than a larger residence in the same neighborhood. In general, the special property tax and assessments do not go above 1% to 1.5% of the market value of new homes. Also, the complete quantity of all yearly property tax normally do not exceed 2% to 2.5% of the residence’s taxable property base value. If you take action to lower your taxable base value meaning, your property tax you will save a substantial amount of money especially, if you have Mellow-Roos Taxes on your residence because of the increased percentage in property taxes you pay. Most likely you will save thousands every year because even though the percentages are low values in California are high enough to make them significant.
The average taxpayer in most major city areas in California in todays real estate market has lost in excess of $200,000 in market value and at the normal rate of 1.25% in property taxes they will save $2,500 per year for every year they own their house! However, that same homeowner at a 2% property tax rate based on of Mellow-Roos taxes will save $4,000 per year in property taxes! 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 communities like sizable Planned Unit Developments (PUD) where there have been numerous homes built in a short period of time and the taxes are necessary to create city services. Ive seen Planned Unit Developments that had upwards of 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. Before acquiring a house with Mellow-Roos property taxes you will be informed in the initial negotiation stages of buying the home 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 informed 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 adviser she is well versed in all aspects of real estate. To contact Valerie Faltas go to her website: www.propertytaxlittleblackbook.com.
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