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When Proposition 13 passed in 1978, it extremely limited the ability of local governments to use property taxes to construct public facilities and services. Consequently, California Homeowners had to find new methods to fund public facilities in their communities such as roads, schools, parks, etc. The Mello-Roos Community Facilities Act of 1982 was enacted by the State legislature, the Act enabled Community Facilities Districts (CFDs) to be put into place by local government agencies as a way of getting this critical neighborhood funding.

Each Community Financial District has varies Mellow-Roos Property Tax. Normally|Generally|Typically, an accepted method that applies to the residence size or parcel size is used to ascertain the amount of specific assessment. So a smaller house in a community will pay less than a larger residence in the same neighborhood. Often, the special property tax and assessments do not go above 1% to 1.5% of the market value of new homes. In Addition to, the total quantity of all annual property taxes 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 substantial amount of money especially, if you have Mellow-Roos Taxes on your house since of the higher 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 substantial.

The average homeowner 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 residence! However, that same taxpayer 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 applicable to recently built neighborhoods like sizeable Planned Unit Developments (PUD) where there have been numerous residences built at once and the property taxes are needed 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 establish the roads, sewage systems, schools, recreation centers, parks and so much more. Before buying a residence with Mellow-Roos property taxes you will be notified in the initial negotiation stages of purchasing the house and during 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.