I know it’s not the most exciting subject but if you happen to fall in love with a home in Santa Clarita and it has Mello Roos, then this will be a must read!
Mello Roos is an additional tax used to provide alternative financing options for real property within a Community Facilities District. Mello Roos is used by cities, counties and special districts such as school districts. It is used to improve or build a neighborhood’s schools, roads, libraries, sewage, electricity, parks, police and fire protection services, or ambulance services.
In Santa Clarita, estimated property taxes are approximately 1.25% of the purchase price of the home. Mello Roos would be in addition to your yearly property taxes and in addition to your monthly Homeowners Association dues. As painful as it may be to pay the additional tax it does provide some benefits. Many homeowners swear that in a community with Mello Roos you attract higher income residents, better test scores, and less crime. I don’t have any statistics to prove this but I have had more than one home owner swear by it!
Mello Roos lasts approximately 25 to 30 years and can be reinstated if two-thirds (2/3) of the voters approve it. Many neighborhoods in Stevenson Ranch are approaching or have already reached their Mello Roos maturity date and have not been reinstated at this time.
Mello Roos fees are not based on the value of the home, instead Mello Roos is based on a property’s square footage and lot size. Mello-Roos taxes cannot increase by more than 2 percent per year over a 25-year period and generally do not exceed 1 to 1.5 percent of a new home’s market value.
The question I get asked the most is, “Is Mello Roos Tax Deductable?” I have heard and read many conflicting reports so I am going to leave this between you and your CPA. What I can tell you is the IRS says “Assessments on real property owners, based other than on the assessed value of the property, may be deductible if they are levied for the general public welfare by a proper taxing authority at a like rate on owners of all properties in the taxing authority’s jurisdiction, and if the assessments are not for local benefits (unless for maintenance or interest charges).”
While you may be able to get away with not paying your property taxes for five years, the same doesn’t apply to Mello Roos. If you do not pay your Mello Roos there is a provision in the legislative act that allows a foreclosure for that portion of property taxes within 150 to 180 days!
Homes with Mello Roos here in Santa Clarita will often lower their list prices to help compensate for the additional cost. I’ve even had some home owners offer to pay for the first year of Mello Roos!
If you are concerned about Mello Roos and would like to know ahead of time what homes in Santa Clarita have Mello Roos, then just give me a call at 661 993 6124, or email at Tracey@TraceyHampson.com or type in your message below.
About The Author
The article above on Santa Clarita And Mello Roos, was provided by Tracey Hampson, an authority on Santa Clarita real estate and a leader in the field of real estate blogging. A frequent guest on Realtor.com, Trulia, Zillow and many additional web publications. Tracey’s second passion is marketing and she uses all of her resources to get maximum exposure for her clients. Tracey has helped many families buy and sell homes in Santa Clarita since 2002.
Are you thinking of selling your home? Are you looking to purchase a home? Then give me a call and let’s chat! I promise you won’t be disappointed!