Home Buying in 94158>Question Details

Dif1810, Real Estate Pro in 94158

In Mission Bay, there is a special assessment for property tax....called "Mello Roos". It is about $2K per year!!! Really?

Asked by Dif1810, 94158 Thu Aug 16, 2012

This is apparently a special tax for City of San Francisco CFD #6 used for Mission Bay South Public Improvements. Will it be there every year?

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Answers

8
Dif1810:

You have your answer regarding CFD#6. You might also be interested in the process of determining the complete construction of your tax bill for an individual property, which is covered below:

"Estimating Property Taxes in CA"
http://www.trulia.com/blog/steve_ornellas_mba_re_mastersgri/…

-Steve
1 vote Thank Flag Link Thu Aug 16, 2012
Hi,

many great answers, you should be able to see on the Title report when those taxes expire as Mello Roos are usually set for a specific time like 20 to 35 years, whereas special assesment bonds are usually longer or permanent.
0 votes Thank Flag Link Mon Aug 20, 2012
Kevin K. Ho, Esq., Real Estate Pro in San Francisco, CA
Another avenue you can take a look at is a property's preliminary title report. The folks at Chicago Title are pretty good when handling my client's properties. In the property report, take a look at all the line items and you'll see items like that assessment appear. Because CTT handles so many different properties they should be able to tell you what each line item means. Remember your property assessment is based upon your sales price (*in most cases) plus special assessments for schools and neighborhood improvements like the Jazz District in the Fillmore and the Mission Bay one you spotted. (*Note: In the case of short sales or foreclosures, however, it is up to the assessor to determine what 'fair market value' that is the basis for your assessment.)

One big thing you should keep in mind is your supplemental tax bill. This means that the assessor lags behind reality in that you may for the seller and you may get a tax bill statement based on the OLD tax rate and not one based upon your sale until several months later. But you WILL be expected to pay at the new rate current from your sale date (which would be in arrears). What does mean? Prepare and save as if you're paying the new property tax based on your transfer or fair market value price from day 1. This year's percentage is 1.1718%; thus your bill will be Sale Price x .011718 + special assessments. And remember Prop 13 limits any annual assessment rate increase to a maximum of 2%.

Hope that helps.
0 votes Thank Flag Link Sun Aug 19, 2012
Hi there,

I recommend that you look at the way the California property taxes are structured, there is a special section about taxes in your Natural Hazard Disclosure Report. Mello Roos reffers to taxes paid for public infrastructure and schools in particular and you should have the nearby schools listed there too.

There is another tax that you will be paying if buying in Mission Bay only : an additional annual or monthly tax for the enhancement of Mission Bay. All the residents of Mission Bay have to pay it, if they buy properties at the Arterra or The Radiance, the Madrone, the Beacon or pretty much all the buildings on Berry, King Streets.
This tax is usually disclosed and negotiated while selling/buying in the Mission Bay neighborhood.

Best,
Alina

Alina Aeby
Broker-Associate
Pacific Union International
alina.aeby@pacunion.com
415.744.4844
0 votes Thank Flag Link Fri Aug 17, 2012
You have some really good questions about property taxes. Can you tell me more about why this is important to you in your home purchase?

Very truly yours,

Roxanne

Roxanne Minott
Realtor
DRE #01898450
(415) 744-4726
roxanne@roxanneminott.com
http://www.bhghome.com/roxanne
0 votes Thank Flag Link Thu Aug 16, 2012
I didn't see such "Mello Roos" tax as part of the property tax for the Arterra building even though it is in Mission Bay also. Why is that?
0 votes Thank Flag Link Thu Aug 16, 2012
I could not have said it better!
:0)
0 votes Thank Flag Link Thu Aug 16, 2012
Hello,

Yes, the Mello Roos special tax will be there every year. It is a type of financing that is used to pay for improvements and services within the district. The taxes are levied every year against the property.

Here is a link to the California Tax Data website for more information on Mello Roos:

http://www.californiataxdata.com/a_free_resources/faq.asp#faq_04

Very truly yours,

Roxanne


Roxanne Minott
Realtor
DRE #01898450
Better Homes and Gardens Mason-McDuffie
Real Estate
2200 Union Street
San Francisco, CA 94123
(415) 744-4726
roxanne@roxanneminott.com
http://www.bhghome.com/roxanne
0 votes Thank Flag Link Thu Aug 16, 2012
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