Home Buying in Santa Clara>Question Details

Vee, Home Buyer in 95014

A realtor replying to a question on property tax in Santa Clara County wrote: 'the tax rate in Santa Clara

Asked by Vee, 95014 Thu Apr 24, 2008

County is 1.25% of the purchase price. If you purchase a newly developed home with Mello Roos tax, then the rate would be about 1.75%.' What is the Mello Roos
tax? Please explain.

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Answers

2
Hello Vee,

Mello-Roos tax is a special additional tax to theproperty tax to pay for new development for public use such as park, road, new school site to the new development areas. Often this kind of tax is short term and temporary. ( they might end up at the end of 5 years) You can negotiate with the builder to pay for this kind of tax as a buying incentive. Here is the website to give you more details in Mello-Roos tax. For better correct and correct answer you can contact the Santa Clara Assessor Office to ask.

http://www.californiataxdata.com/A_Free_Resources/faq.asp#faq_05
0 votes Thank Flag Link Fri Apr 25, 2008
California voted years ago for proposition 13 to limit state property tax to 1% of the sales price to be paid annually. After the vote many city planners refused to issue building permits on new housing areas because they said they "had no more money for infrastructure". Attorneys Mello & Roos forced the issue into court and asked how could the new home buyers pay for the infrastructure needed in new home areas. Long story short...they added a bond to pay for additional items needed (roads/schools/utilities) this additional bond was added to tax bills and eventually added as a "special tax" or "Community Facilities District Tax". So these extra costs are not prop 13 state "tax"...they are "special tax". Now 20 years later you will find vastly different tax areas throughout California, even from one neighborhood to the next. Google search "mello-roos" and you will get more factual and actual information. A Pro realtor will be able to find and correctly calculate property taxes on any home you area interested in. If your agent won't provide you with the facts from your County Tax assesor in writing...get a better Realtor!
0 votes Thank Flag Link Fri Apr 25, 2008
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