| Below is general discussion of various | | | | by Prop 13, Mello-Roos fees are a |
| factors impacting property taxes in San | | | | separate charge on the property tax |
| Diego, California. The reader should | | | | bill. The duration of Mello-Roos fees |
| consult their tax advisor for definitive | | | | are linked to the amount of time needed |
| guidance about property tax issues and | | | | to pay off the bond, which is typically |
| not rely soley on the informaton below. | | | | 20-25 years. Mello-Roos fees range from |
| Property tax rates are capped in | | | | $174 to over $3000 annually, and the |
| California due to the passage of | | | | average fee for San Diego communities |
| Proposition 13 in 1978 ("Prop 13"). Prop | | | | was $1,488 in 2006. |
| 13 was a ballot measure approved by the | | | | To get a general idea about the amount |
| voters of California to limit property | | | | of property taxes you would owe annually |
| tax increases. The legislation also | | | | on a property, multiply the purchase |
| mandated that any future increases in | | | | price of the property by 1.2%. For |
| property tax rates have the support of | | | | example, if you purchased a $400,000 |
| two-thirds of the Legislature for | | | | home, your annual tax due would be |
| approval. This provision dramatically | | | | around $4,800, plus special assessments |
| limited the ability of the legislature | | | | (if applicable), and Mello-Roos fees (if |
| to increase taxes. | | | | applicable). |
| The property tax rate in California is | | | | Consumers should be aware that tax rates |
| 1% of the assessed value of real estate, | | | | for a particular area can increase as |
| plus any bonds, fees and special | | | | news bonds are added or decrease if |
| charges. Properties can only be | | | | bonds are paid off. In addition, Special |
| reassessed when there is a change in | | | | Asssessments (if any) for new |
| ownership or when new construction is | | | | infrastructure can also impact tax |
| completed. Unless one of these | | | | rates. |
| reassessment conditions exists, Prop 13 | | | | When considering the purchase of real |
| allows for annual increases of up to 2% | | | | estate, single-family homes, |
| of a property's value. | | | | condominiums or townhomes in San Diego |
| The passage of Prop 13 dramatically | | | | (particularly in newer communities), |
| limited the legislatures ability to | | | | propspective buyers should find out if |
| increase taxes. Despite this, | | | | the property has Mello-Ross or other |
| municipalities desired a mechanism to | | | | Special Assessment fees, how long these |
| subsidize the building of infrastructure | | | | fees will continue, and if the fees |
| for new developments, so in 1982, the | | | | increase annually. |
| Capital Facilities Act was passed. The | | | | Over 1 million tax bills are sent out |
| act is better known by its legislative | | | | every year in San Diego County by the |
| authors, Senator Henry Mello and | | | | County Tax Collector. The tax period in |
| Assemblyman Mike Roos (i.e. Mell-Roos | | | | San Diego covers the period from July |
| Assessment). | | | | 1st to June 30th. The amount owed is |
| According to the San Diego County | | | | based on the assessed value of the |
| Assessor, "Mello-Roos districts are | | | | property as of January 1st. The tax bill |
| established by local governments at the | | | | is mailed out in September or early |
| request of a developer to finance | | | | October, and is due in two equal |
| specific public facilities and services | | | | installments; first payment is due |
| such as schools, roads and libraries. | | | | December 10th and the second payment is |
| Mello-Roos districts were authorized by | | | | due April 10th. State law does not allow |
| state law in 1982. This law allows any | | | | for extensions to pay the tax bill and |
| public agency to establish a Mello-Roos | | | | late payments are subject to a penalty |
| district, which then can issue the | | | | of 18% APR. For those wishing to pay by |
| necessary tax-exempt bonds and impose | | | | credit card, the Discover Card is the |
| fees to pay off these bonds." | | | | only option at this time. |
| Communities or districts that impose a | | | | For more information about property tax |
| Mello-Roos fee are distributed | | | | issues in San Diego or to obtain a |
| throughout the County but are most | | | | definative answer to your property tax |
| common is large new subdivisions. | | | | questions, contact the San Diego County |
| In addition to the 1% tax rate allowed | | | | Assessor or your tax professional. |