What Are Mello-Roos Taxes?

Find out what exactly a Mello-Roos tax is and how it affects buyers and sellers of San Diego real estate.

San Diego Assessors Website: Mello-Roos Lookup
Temecula, CA 92592
Area: 1750
Spring Valley, CA 91977
Area: 1874
San Diego, CA 92104
Area: 0
Valley Center, CA 92082
Area: 1485
San Diego, CA 92102
Area: 1865
San Diego, CA 92103
Area: 1898
Chula Vista, CA 91910
Area: 1422
Chula Vista, CA 91911
Area: 1394

Hi everybody. John Collins, San Diego Realtor. I wanted to do a quick video today on Mello-Roos taxes. What are they and what do they mean for property owners when they are buying and selling San Diego Real Estate.

First, a little bit of history: Mello-Roos taxes are a supplemental tax that you pay along with your regular property tax. Back in the 70's, California passed Prop 13 which limited property taxes and their growth. Good thing for the property owners, but it also meant that by the early 80's they were looking for ways to raise money for infrastructure projects; Schools, plumbing, street lights, street paving. All those things that improve a neighborhood. And, what happened was a guy named Mello and a guy named Roos got together and they wrote some legislation that allowed areas to create what they called districts, a "CFD" is another term you'll hear for a Mello-Roos district. Those districts could then sell bonds and use that money for infrastructure projects and the money would be paid back over time by the property owners in that area via the a Mello-Roos tax on their property tax.

Now, the advantages of being in a Mello-Roos district is first and foremost that your infrastructure is probably going to be better. Newer schools, streets, plubming, street lights and all those things. More development and more properties typically means more property value.

A disadvantage of cours is that you are subject to paying that tax while you own the property and then when you sell the property you have to find somebody who will be willing to pay that additional tax as well. That's why they sometimes call Mello-Roos the "property tax you choose". You are effectively volunteering to pay it by buying in that area.

The areas in San Diego where you are most likely to find Mello-Roos districts, find yourself in a Mello-Roos district; San Marcos and Chula Vista both have quite a few. Poway also, although those are almost all associated with their award winning school district so, probably, if you have a family money that you'll consider very well spent.

How much are they and how long do they last: It can vary a lot. Per month, once you work it out, it could be as little as twenty five or thirty dollars, or it could be hundreds of dollars per month. So you really want to make sure you know that going in, in advance. There are ways to know, of course, during the process of escrow. You would be finding that out through disclosures and title reports, but not always the preliminary title report, so you probably want to know before you get that far along in a transaction. There is a county assessors website that I'll link to below that you can look up by address or by neighborhood. And then, if you are just pulling public tax records, you can find out that way as well.

Term-wise, typically between seven and thirty years is the Mello-Roos obligation. So when you are buying in a Mello-Roos district how much is important, but also how long is left on that obligation.

I hope this is all great information for you and useful to you in your property search. Please do give me a call if you have any other questions about Mello-Roos, Mello-Roos districts, or property taxes, or anything else really to do with San Diego real estate. I appreciate the opportunity to help.

I look forward to that conversation and in the meantime please enjoy your day and living life in America's Finest City. Alright. Take care.

2626 Colibri Lane La Costa Carlsbad

Categories:Carlsbad, Virtual Tour, For SaleAuthor:Date:2020-09-17
5 bed 3 bath Home for Sale in La Costa, Carlsbad! Short drive to the beach, Lake San Marcos, and Carlsbad Village. Includes 3D tour!

4054 Nobel 101 La Jolla Village Park

Categories:Virtual Tour, Income Property, For Sale, Real Estate InvestmentAuthor:Date:2020-08-19
One bed and one bath in the heart of UTC. Completely turnkey and nicely updated. Extremely walkable neighborhood and a short drive to La Jolla Shores Beach, The Village, or UCSD.

10203 Kerrigan St

Categories:Virtual Tour, For Sale, Real Estate Investment, Market Update, VideoAuthor:Date:2020-02-14

1755 Red Barn Rd Encinitas 92024

Categories:Encinitas, For Sale, Income Property, Real Estate InvestmentAuthor:Date:2019-11-05
Village Park Encinitas townhome, updated and ready for move in. Come enjoy North County San Diego coastal living!

8375 Suntree Pl San Diego 92119

Categories:Real Estate Investment, For Sale, Income Property, Open HouseAuthor:Date:2019-09-03
8375 Suntree Place, San Carlos: Amazing value in a twinhome that lives like a detached home. Park-quiet street and well chosen upgrades mean this San Diego home for sale will not last long!

477 Chardonnay Ct San Marcos 92069

Categories:Open House, Income Property, For SaleAuthor:Date:2019-07-03
Located in the Vineyard Hills section of north San Marcos, this cul-de-sac home is beautiful and completely move-in ready! 18 foot ceilings, tile, and crown molding wow you as you enter this property that is sure to go fast!

2680 Worden St 68 Point Loma

Welcome to Point Loma Tennis Club. Sporting club-like amenities and open areas, located minutes from the sand, parks and rec areas, nature hiking, shopping, and freeway access, it's hard to imagine a better location at such a competitive price point!

2640 Worden St 205 92110

Categories:Income Property, For Sale, Real Estate Investment, Point Loma, Ocean Beach, Virtual TourAuthor:Date:2018-10-05
Located in the ideally located Point Loma Tennis Club, this property is exeptional in many ways.  Go from your doorstep to having your feet on OB pier in less than 10 minutes for under $400,000!  Upgraded and lovingly cared for owner occupants, this opportunity will not be available long.

5206 Soledad Rd 92109

Tremendous opportunity to own in one of the most sought-after and seldom available neighborhoods in Pacific Beach! Across from Kate Sessions Park trails, just a stone's throw from the park's entrance, and at the access to the elite Los Altos loop. Offered by Beach Realty San Diego, Brokered by Big Block.

15554 Paymogo St San Diego 92129

Categories:Virtual Tour, For SaleAuthor:John CollinsDate:2017-11-03
Truly turnkey Rancho Penasquitos property in the Rolling Hills neighborhood. Fully remodeled interior. close to Poway School District Elementary School, Park, and Trails. Quiet Street with no through traffic! Offered by Beach Realty San Diego brokered by Big Block Realty

4977 Lamia Way Oceanside 92056

Categories:Video, Virtual Tour, Real Estate Investment, Buying a Home, For Sale, Market UpdateAuthor:John CollinsDate:2017-08-15

1205 Pacific Hwy #2704 Video Tour

Video Tour or 27th Floor Condo in The Grande North, Downtown San Diego. Columbia District.

San Diego Real Estate - 2015 Recap and 2016 Forecast

Categories:Income Property, Selling a Home, Real Estate Investment, Loans and Mortgage, Video, Buying a HomeAuthor:Date:2015-12-17
Another year behind us! San Diego real estate market recap for 2015 as well as a look toward 2016. Fed increases rate for first time in nearly a decade! We talk about what that means for your San Diego real estate plans.

San Diego Real Estate Market Update, November 2015

Categories:Real Estate Investment, Real Estate Tips, Selling a Home, Market Update, Buying a HomeAuthor:Date:2015-11-19
Residential real estate snapshot for San Diego values, inventory, interest rates, and trends. VIDEO

What is Mello-Roos?

Categories:Video, Real Estate Investment, Property Taxes, Buying a HomeAuthor:Date:2015-10-08
Find out what Mello-Roos districts (CFD's) are and how they can add to your California property tax obligation.

Open House - Sunset Cliffs - Oct 4 0215

Categories:Video, Point Loma, Sunset Cliffs, Ocean Beach, Open HouseAuthor:Date:2015-10-01
Please come see this wonderful piece real estate overlooking Sunset Cliffs. Open Sunday, October 4th, 1pm to 4pm. This is a 3 bedroom 2 and a half bath, nearly two thousand square foot single level home with detached garage, quiet back yard and sit down ocean views from the living room!

School's Effect on San Diego Real Estate Value

Categories:Ocean Beach, Mission Beach, Video, Downtown, Pacific Beach, Appraisal, Bankers Hill, South Park, Real Estate Tips, Hillcrest, Bay Ho, Bay Park, North Park, Selling a Home, Golden Hill, La Jolla, Little Italy, Buying a Home, Clairemont, Mission Hills, Point LomaAuthor:John CollinsDate:2015-09-09
Families want to live close to good schools, but living too close can have unintended consequences on the value of your San Diego Real Estate. A new study from the USD Burnham-Moores Center for real estate quantifies the effect on value. VIDEO.

Quieter Homes Program for San Diego Home Owners

Categories:Golden Hill, Real Estate Tips, South Park, Selling a Home, Buying a Home, Video, Ocean Beach, Point LomaAuthor:John CollinsDate:2015-08-26
What is the Quieter Homes Program and what does it mean for San Diego real estate owners? This brief video describes the program overall, general requirements, and answers some frequently asked questions about the program.

Pacific Beach, San Diego Real Estate: Buying, Selling, and Investing

Categories:Real Estate Investment, Selling a Home, Loans and Mortgage, Pacific Beach, Video, Buying a Home, Income PropertyAuthor:John CollinsDate:2015-07-31
Each San Diego neighborhood is different. What do you need to know when buying, selling, or investing in real estate in Pacific Beach? This video will highlight some things that will be helpful when transacting real estate in Pacific Beach.

Tips for Decorating your San Diego Home

Categories:Real Estate Tips, Point Loma, Selling a Home, North Park, Mission Hills, Home Decorating, Pacific BeachAuthor:John CollinsDate:2015-07-28
Whether you are decorating for yourself, or staging a home for maximum impact and profit, these helpful pointers for both timeless and on trend options for decorating can help you choose the artistic direction for your San Diego Home.

Questions to Ask Your San Diego Home Inspector

Categories:Real Estate Tips, Appraisal, Inspections, Buying a HomeAuthor:John CollinsDate:2015-07-17
The home inspection is a critical part of the home buying process. Here are some questions to ask to make sure you are working with the right inspector!

The Mills Act regarding San Diego Real Estate

Categories:Mission Hills, Video, Property Taxes, Real Estate Tips, Pacific Beach, South Park, Golden Hill, North Park, Point LomaAuthor:John CollinsDate:2015-07-16
What is the Mills Act and what does it mean for San Diego real estate owners? This brief video will describe the history, tax benefits, and some of the requirements for participacing in the Mills Act in San Diego.

Financing a Second Home in San Diego

Categories:Real Estate Tips, Buying a Home, Mission Beach, Loans and Mortgage, Pacific BeachAuthor:John CollinsDate:2015-07-14
Tips for meeting the stricter requirements often demanded by lenders when applying for a mortgage on a second San Diego property.

Preparing Your San Diego Home for Sale

Categories:Real Estate Tips, Video, Selling a HomeAuthor:John CollinsDate:2015-07-09
Resource video for preparing your home for sale with checklist and tips on what to do and where to invest your improvement dollars. Includes downloadable checklist.

Building in Litigation

Categories:Video, Loans and Mortgage, Real Estate TipsAuthor:John CollinsDate:2015-05-26
What you need to know when buying a property when there is litigation in the building involving other owners or the HOA.

Appraisal Lower Than Offer

Categories:Appraisal, Inspections, Video, Real Estate TipsAuthor:John CollinsDate:2015-05-18
What you need to know as a buyer or seller when the appraisal comes back lower than the agreed upon price for a property.