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