Mello-Roos, or suplemental taxes. You probably heard about them, and you might even pay them, but what are they exactly?
Well, back in the 70s, when California passed Proposition 13, which basically limited California property tax at 1.25% maximum, it limited the ability of local governments to pay for new infrastructure.
So these two guys, Senator Henry J. Mello and Assemblyman Mike Roos came up with the idea to create these supplemental taxes, hence why they're know as Mello-Roos taxes, which go onto your property tax bill. Now, these supplemental taxes are kind of like a bond. They are usually a 20-30 year tax, and sometimes you have to pay them forever, but that's a different story.
They are used to pay for infrastructure such as water treatment, new schools, new roads, all of those public use entities that you, as a homeowner, are going to need in your neighborhood. You're getting to pay for through those supplemental taxes.
So when you're buying a home with Mello-Roos, make sure to investigate: How much is it? When does it expire? Does it expire? And what does it cover for you, the homeowner?
If you have further questions about these taxes, you can call me at (714) 844-5696.