Here is a blog that I wrote about understanding property taxes and special assessments
and here is some additional special assessment info that you should check out
Hope that clears it up for you but if you still do not fully understand it, I will help you until you do because it is really a really important issue when buying a home.
Your base tax based on home value can go up or down based on your purchase price or assessed value. This is the 1.0 or 1.1% but your mello-roos in most cases stays the same and based on number of years that are left on the bonds can be done if they do not review. These days cities do not have much surplus so it can continue for quite some time. Although if you plan to stay in this home long enough, you have a option to pay it off so you never have to pay it year after year.
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Every house in our area has assessments. Some houses have higher assessments than others. Yes, some have Mello-Roos, and some do not. The assessments never change.
Here's something to think about: Because the assessment never changes, when the price of the house changes, the effective tax rate changes. Recently we have seen a dramatic drop in our home values. Becase of this our Effective Tax Rate has gone up! Think about it, if a house was worth $400K and the assessments were $1200 a year then the Effective Tax Rate was about 1.3-1.4%. If that same house is now worth only $250 the Effective Tax Rate of that house is now about 1.5-1.6%.
If you have any questions or would like further information about this math problem, I am happy to review it with you! Thank you for your time!!
I just recently purchased a home near fallbrook and am also a real estate agent. I was looking in the Morgan Hill area as well because they are beautiful houses, but watch out for the taxes up there. Your base tax rate of 1 percent is what changes with the price range. The mello roo's and special assesments never change and are not often listed to the public unless asked as you are doing. A good indication of what you might expect for properety taxes is to look at what the previous owners paid for their own taxes, if you multiply what they purchased their home for by the 1 percent base tax rate and it comes out alot more than you know you are in a very high tax braket. That is why i stayed within sd county. Please feel free to call me anytime 760-216-0525 My name is Trisha
One of the reasons that it is so confusing is that the assessment amounts are different in each neighborhood.
Yes, you are correct. I love it when buyers are aware of these important issues. Special Assessments stay the same and the tax amount vary depending on assessed value of the home.
Here is a blog I wrote that may help http://www.trulia.com/blog/dianne_hicks/2009/07/buyer_beware
Also you can call on the special assessment bonds and ask the time frame left before it goes away. If you need to know how to access that call your realtor(if you have one) or give me a call and I will tell you how to access that info.