What are Mello-Roos tax and do they affect me?

Unlike other states countrywide, California has a property tax of only 1% annually of a home's purchase price.  However, some San Diegans are face with an additional tax called Mello-Roos.  Mello-Roos became law in 1983 and allows local governments to establish a Mello-Roos special tax assessment district in all newly developed areas if approved by two-thirds of eligible voters or landowners in the proposed district. The Mello-Roos funds go toward public facilities and service needs.   

These public facilities and service needs include: elementary and secondary schools; police protection, including criminal justice facilities; fire protection, including ambulance and paramedic facilities; recreation program services; flood and storm protection services; libraries; natural gas pipeline facilities; telephone lines; electrical transmission lines and facilities; and any other government facility which is owned and operated by the local government.

The tax amount and duration can vary widely from district to district or even street to street. these changes will be added to the 1% property tax rate as required by Proposition 13. The average period for a Mello-Roos is anywhere from 25 to 40 years. It is important to note that these tax can increase up to 2% annually. Once the bond expires the so the required Mello-Roos tax.

More Resources on Mello-Roos below:

• County Assessor’s Office

• Areas that currently have Mello Roos Tax