Does Austin have melloroos taxes like california does?

Asked by sarahirvine2006, Austin Hills, Austin, TX Thu Nov 8, 2012

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Paul Puig, Agent, AUSTIN, TX
Tue Nov 13, 2012
With Melloroos, the tax paid is used to make the payments of principal and interest on the bonds.

Here is Texas, a deregulated utility area (mud district), is similar. Any listing should have utility
information attached.

MUD districts are more in unincorporated areas. Cityhood vs County. A Seller will provide these details in their Disclosure forms.

Paul Puig, Keller Williams Realty
Travis, Bastrop, Williamson, Hays Counties
0 votes
Sonia Roberts, Agent, Round Rock, TX
Thu Nov 8, 2012
Hi Sarah,
The melloroos taxes seem to have been created as a way around Prop13 in CA.-for the development of infrastructure, parks, schools etc.
Here when the Developer wants to build a subdivision , if the utility services are not provided then the special districts are created and they have the ability to tax within their jurisdiction. They will stay in place until the develpment is annexed by the city and everthing changes. Opening a can of worms on this scenario is Circle C, ask your Realtor about that one.
Hopes this is helpful, if you have more questions feel free to contact me or one of my collegues.
Sonia Roberts, Realtor®
Canady Realty
"A satisfied customer is the best business strategy of all."
Michael LeBoeuf
0 votes
Jeffrey Schn…, Agent, Austin, TX
Thu Nov 8, 2012
Hi Sarahirvine2006,

Sorry to be the opposite of the others, but yes, we have virtually the same thing here, we just call them Utility Districts. Most are called Municipal Utility Districts (MUD), or Water Control & Improvement Districts (WCID), and sometimes they are called Special Utility Districts (SUD). They can perform much the same function, paying for infrastructure, water supply, sewer, flood control, etc.

Every property has a property ID, and you can easily find the different taxing authorities, and whether or not a particular property has a Utility District associated with it. Easy to find if you know what you are looking for. But don't just look at taxes, Homeowner Associations are quite common and they have fees, sometimes more than one.

If you need any more help getting answers, give me a call, or write me an email.

Jeffrey Schnabel
Broker | Partner | Keller Williams
0 votes
Merritt Burks, Home Buyer, Austin, TX
Thu Nov 8, 2012
Hi Sarah,

We do not have Mello-Roos communities in the area, at least not that I am aware of. They seem to be a new thing in California.

If you need help finding a new home I know all the best communities in the area, give me a call and we'll see if we can work together!

Merritt 512-626-8422
0 votes
Paragon Prop…, Agent, Austin, TX
Thu Nov 8, 2012
No - In CA, they only charge the (extra) melloroos taxes for a certain time period. Here, all new development taxes are wrapped into the regular tax rate and there is no timeframe at which point it will be removed. Generally, new developments will have a slightly higher tax rate than older neighborhoods. They have to pay for that infrastructure somewhere!

Sue Ellett, Broker-Associate, Coldwell Banker United Realtors 866-693-7741
0 votes
Glenn Smith, Agent, Austin, TX
Thu Nov 8, 2012
No, we don't have those taxes that are created with bond programs in California to a certain area. We pay a higher property tax rate, but no state income tax. I would be more than happy to help you find an area for a new home here in the Austin area. I have had many clients out of California. I work for Capital City Sotheby's International Realty which is also big out on the west coast. Give me a call and I can help you with anything you need in the Austin area.

Glenn Smith
Capital City sotheby's International Realty
512 771 6371
0 votes
vivianne dor…, Agent, Austin, TX
Thu Nov 8, 2012
What on earth is melloroos? I am sure Austin doesn't have ,whatever it means. Please enlighten me.

Vivianne Dordea
0 votes
Melloroos are taxes for new communities to pay for sewer, schools, etc. They are a certain percentage of the property value- can add $500-1400/month to monthly payments
Flag Fri Nov 9, 2012
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