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