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Posts Tagged ‘property tax expert’

When Proposition 13 passed in 1978, it really limited the capacity of local governments to use property taxes to construct public improvements and services. As a result, Californians were forced to discover different ways to finance public improvements in their communities such as roads, schools, parks, etc. The Mello-Roos Community Facilities Act of 1982 was enacted by the State legislature, the Act created Community Facilities Districts (CFD’s) to be put into place by local government agencies as a means of getting this crucial community funding.

Mellow-Roos Property Taxes changes for each Community Financial District. Generally, an adopted method that applies to the home size which is based on the square footage or parcel size is used to ascertain the quantity of specific assessment. So a smaller house in a community will pay less than a larger residence in the same community. Often, the special property tax and assessments do not exceed 1% to 1.5% of the market value of new homes. Additionally, the complete quantity of all annual property tax generally does not go above 2% to 2.5% of the house’s taxable property base value. When you lower your taxable base value or in other words, your property taxes you will save a substantial amount of money especially, if you have Mellow-Roos Taxes on your house since of the higher percentage in property taxes you pay.

The average taxpayer in most major city areas in California in todays real estate market has lost in excess of $200,000 in market value and at the normal rate of 1.25% in property taxes they will save $2,500 per year for every year they own their house! However, that same taxpayer at a 2% property tax rate based on of Mellow-Roos taxes will save $4,000 per year in property taxes! Learning to PERMANENTLY lower your taxable base value in California is the key to saving thousands over the course of your home ownership which is disclosed in the California Little Black Book.

Generally Mellow-Roos Property Taxes are applicable to recently built neighborhoods such as sizable Planned Unit Developments (PUD) where there have been numerous houses built in a short period of time and the taxes are needed to establish city services. Ive seen Planned Unit Developments that had upwards of 4,000 houses built! So, the county and city governments need to find funding to establish the roads, sewage systems, schools, recreation centers, parks and so much more. Prior to acquiring a home with Mellow-Roos property taxes you will be informed in the beginning negotiation stages of buying the home and during escrow that these property taxes apply. You won’t be blind sighted by Mellow-Roos Taxes, it is required that you are notified prior to buying.

About the Author: Valerie Faltas, Property Tax Expert has been involved in all facets of real estate for over ten years including assessments, appraisals, estates and trusts, investing and much more. She is a Certified Property Tax Appraiser, Licensed Residential Appraiser and a member of the International Association of Assessment Officers. As a real estate investor and adviser she is well versed in all aspects of real estate. To contact Valerie Faltas go to her website: www.propertytaxlittleblackbook.com.