Fridays with the Fiddle Fig: What is Mello-Roos?
"What is a Mello-Roos Tax?"
Many people are familiar with HOA's and planned communities but not as many are familiar with the Mello-roos tax. So today I'm covering what a Mello-roos tax is and why we see it on some properties and not others.
Mello-roos is an additional tax added to your property taxes. It has a pay back time frame of typically 25-40 years. They are usually implemented to find infrastructure or facilities for communities such as roads, street lights, schools, and police or fire protection.
In San Diego the most common reason we see a Mello-roos tax is when a developer builds a large new community. Areas like Chula Vista, Carmel Valley and parts of Scripps Ranch are some of the more recent communities and ones that still have Mello-roos.
If you are buying or selling in a community with Mello-roos it is important to know these details. Some buyers or sellers may even decide to pay if off in full during the sale to avoid the potential 2% max increase in payment. We are always happy to find out any specifics for you on a particular property when looking to buy or just be more informed when selling your property.