Finance & Tax
What is Mello-Roos and does my Inland Empire home have it?
Quick answer
Mello-Roos is a special tax district that pays for new roads, schools, parks, and utilities in newer communities. It is common in Inland Empire master-planned areas and can add roughly $1,000 to $4,000 or more a year on top of your property tax.
The full answer
More detail, straight from Julian Cesar
Mello-Roos is a special tax district created under California's Mello-Roos Community Facilities Act. The district issues bonds to build the roads, schools, parks, water, and sewer lines that serve a new community, and the special tax repays them as a separate line on your property tax bill. It is the norm in newer Inland Empire communities like Beaumont, Menifee, Fontana, Temecula, Eastvale, and Jurupa Valley, and it can add roughly $1,000 to $4,000 or more a year on top of your regular property tax. Older, pre-1990 neighborhoods usually have little or none. The tax does not go away when you buy, so the amount matters for your monthly budget. Julian Cesar checks the tax records before you fall in love with a home, so the Mello-Roos number is on the table from day one.
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More Finance & Tax questions
Do I have to pay capital gains tax when I sell my home?
Most homeowners do not. If you have lived in the home two of the past five years, you can exclude up to $250,000 of gain, or $500,000 for married couples filing jointly.
Read the answer Finance & TaxHow do property taxes work for a new buyer in California?
In California, your property tax base resets to the purchase price when you buy. The typical base rate is about 1 percent, plus voter-approved local bonds and assessments.
Read the answer Finance & TaxWhat is PMI and can I avoid it?
PMI, private mortgage insurance, protects the lender when you put down less than 20 percent. You avoid it with a 20 percent down payment or by choosing a lender-paid or piggyback structure.
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Julian Cesar
Licensed Agent, CA DRE #02015349