While looking to purchase a home in Ventura County you might have come across the term Mello-Roos.  What is a Mello-Roos and why do only some neighborhoods demand this extra fee?

In Ventura County there are a few communities where the home owners are bound to a Mello-Roos.  A Mello-Roos community refers to a neighborhood where a special property tax, in addition to the normal Ventura County property tax, is imposed on the home owners.  This extra tax assessment is a means for the community to repay the bond that was used to fund the infrastructure within that community.

What is the Mello-Roos amount?

The amount differs from one community to another.  Unlike your annual property taxes, Mello-Roos can not be based on the value of your property.  There is a special mathematical equation that calculates this tax amount which is based on the square footage of the property, lot size, and the use of the property.  However, the normal property taxes in Ventura County plus the additional Mello-Roos should not exceed 2%-2.5% of the home’s market value.

When is the Mello-Roos Due?

The Mello-Roos tax is collected usually annually or semi-annually. You can choose to combine this tax assessment with your normal property tax payment at the close of your escrow.

How long does Mello-Roos last?

The time frame for Mello-Ross varies from community to community.  The Mello-Roos tax will stay in effect until both principal and interest are paid on the bond.  However the tax period should not exceed 40 years from the original built date.

What is the benefit of living in a community with Mello-Roos?

Communities with Mello-Roos offer newer schools, parks, and recreation centers which are very important to some home buyers.  Due to community and property amenities the homes in these neighborhoods are usually very popular amongst home buyers.

Ultimately every home buyer needs to consider that the cost of living maybe increased due to this extra tax.  Also by purchasing a home with a Mello-Roos you are limiting the number of potential home buyers you might attract once you consider to resell your home. However, the final purchase decision is yours and only yours.