Reduce Mellow-Roos Property Taxes
Proposition 13 was passed in 1978 by the Howard Jarvis Administration to limit propety taxes in the state of California. Proposition 13 really controlled the capacity of government to use property taxes to build public facilities and services. Consequently, Californians were forced to discover different ways to pay for government community improvements in their neighborhoods like streets, schools, parks, etc. The Mello-Roos Community Facilities Act of 1982 was implemented by the California legislature, the Act enabled Community Facilities Districts (CFDs) to be put into place as a means of getting this critical community financing.
Each Community Financial District has is different Mellow-Roos Property Tax. Normally|Generally|Typically, an approved formula that applies to the house size or parcel size is utilized to establish the quantity of particular assessment. So a smaller residence in a community will pay less than a larger home in the same neighborhood. Generally, the special property tax and assessments do not go above 1% to 1.5% of the market value of new homes. Additionally, the total quantity of all yearly property tax normally do not exceed 2% to 2.5% of the homes taxable property base value. If you take action to lower your taxable base value meaning, your propety tax you will save a significant amount of money especially, if you have Mellow-Roos Taxes on your house since 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.
In California thousands of homeowners in many major city 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 home! Yet, that same homeowner 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 residence and let’s say you plan to own your residence 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 such as sizeable Planned Unit Developments (PUD) where there have been numerous residences built at once and the property taxes are needed to establish city services. Ive seen Planned Unit Developments that had more than 4,000 houses built! So, the county and city governments need to find funding to build the roads, sewage systems, schools, recreation centers, parks and so much more. Prior to acquiring a property with Mellow-Roos property taxes you will be notified in the initial negotiation stages of buying 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.
