Mello Roos may sound like an exotic drink, it’s actually something critical to the California real estate community. Mello Roos gets its funky name from two people: Senator Henry Mello and Assemblyman Mike Roos. The true name for Mello Roos is the Community Facilities District Act. It’s a provision that lets local government agencies establish community facilities districts. This is important because it opens those districts up to community funding. Public financing for these districts is created through the sale of specific public improvement bonds, including public funding for community services such as street repair, water, infrastructure, and schools.
Unlike most property, Mello Roos districts are not subject to Prop 13. That means that, for better or worse, properties that fall in these districts have their property taxes adjusted individually rather than at the capped rate created by Prop 13. In addition, Mello Roos expenses may be tax-deductible depending on the expense and situation. However, don’t take this as a broad-stroked rule; if you’re involved with a Mello Roos facility, check with your local tax professional before attempting any sort of major deductions.
The views published here are the opinions of the writer and are not a substitute for legal counsel.
Israel Gonzalez
Real Estate Broker-Hollister CA
831-636-8858
Click here to contact me by email
