| There is a lot of misunderstanding about Mello-Roos | | | | Mello-Roos tax. Before you make an offer you can |
| in Ladera Ranch. Simply stated, Mello-Roos is a special | | | | also estimate the Mello-Roos for it does vary |
| property tax assessment that is levied on Ladera | | | | somewhat from community to community and even |
| Ranch (and other cities) real estate within a | | | | lot to lot.. You take the quoted Tax Assessor yearly |
| designated district. These Ladera Ranch Mello-Roos | | | | Tax amount, and subtract the 1.1% of the Prop 13 |
| districts are created to raise money by the sale of | | | | portion of the tax from this amount. The remainder |
| bonds, for the purpose of financing infrastructure | | | | is a reasonable estimate of your yearly Mello-Roos |
| improvements for that community. This infrastructure | | | | payment for that home. |
| improvements may include drainage systems, sewer | | | | C.- Can I deduct my Ladera Ranch Mello-Roos taxes |
| treatment, water lines, new streets, new parks, | | | | from my Income Tax? It is the opinion of some tax |
| upgraded electrical lines, etc. The motivation for the | | | | accountants that the Mello-Roos tax is not tax |
| creation of the Mello-Roos tax started back in 1978 | | | | deductible. On the other hand, I know of home |
| with the passage of Proposition 13. Prop 13 limited | | | | owners in Ladera Ranch who have deducted their |
| local governments ability to pay for capital facilities | | | | Mello-Roos tax from their income taxes. It is best |
| and services by increasing property taxes. In 1982, | | | | advised that you consult with your tax advisor and |
| Senator Henry Mello and Assemblyman Mike Roos | | | | make your own decision on this topic. |
| enacted the Community Facilities District (now called | | | | D.- How and when do I pay the Ladera Ranch |
| Mello-Roos) to enable local governments with an | | | | Mello-Roos Tax ? The Mello-Roos tax is included in |
| another means to raise needed funds, and the first | | | | your normal Prop 13 tax bill and this is billed to you |
| Mello-Roos district was created in 1986. Below are | | | | twice per year on February 1st and November 1st. |
| some of the more common questions that are asked | | | | E.- How long do the Ladera Ranch Mello-Roos tax last |
| about Ladera Ranch Mello-Roos: | | | | ? The Mello-Roos assessment is written for about 15 |
| A.- What is the Total Tax Rate in Ladera Ranch | | | | to 25 years dependent on the community facilities |
| including Mello Roos ? When homes were first built, | | | | district. Many of the districts have the right to renew |
| the Ladera Ranch Mello-Roos fee plus Prop 13 base | | | | the Mello-Roos tax if needed, so it is prudent not to |
| tax totaled about 2.0%. Prop 13 base property tax is | | | | assume that this tax will disappear during your |
| approximately 1.1% of the purchase price and the | | | | ownership |
| Mello-Roos portion of the tax was approximately an | | | | F.- How do I compare the value of a Home with |
| additional 0.9%. One important distinction is that the | | | | Mello-Roos against a Home without? As an example, |
| Prop 13 Tax is based upon the sales price, so as your | | | | let's say you are thinking about buying either a home |
| home appreciates and is sold, the new Buyer has to | | | | in Ladera Ranch with yearly Mello-Roos payment of |
| pay a higher property Tax. But, the Mello-Roos tax is | | | | about $1,800, or possibly buying a home in Laguna |
| not based upon the sale price and mostly stays | | | | Niguel with no Mello-Roos. To compare the values of |
| constant even after years of appreciation. Due to | | | | these two homes, take the $1,800 yearly Mello-Roos |
| the strong appreciation that Ladera Ranch has | | | | payment, divide by 12 for the monthly payment of |
| experienced since the homes were first built, the | | | | $150. A $150 per month payment is approximately |
| Prop 13 tax adjusts upwards at bout 1.1% of the | | | | equal to a $25,000 mortgage in today's interest rates. |
| purchase price, while the Mello-Roos essentially stays | | | | Therefore the home in Ladera Ranch is actually |
| fixed at approximately $2,000/year. So today, the | | | | costing you about $25,000 more as compared to the |
| total property tax is around 1.5% for a $800,000 | | | | home you're considering in Laguna Niguel. If the |
| home. | | | | Ladera Ranch home is still more desirable to you at a |
| B.- How does one estimate the Mello-Roos when | | | | comparative price $25,000 higher than the home in |
| buying a Ladera Ranch home? During the escrow | | | | Laguna Niguel, then buy it, if not, buy the home in |
| period, the Seller is required to acquire a report which | | | | Laguna Niguel. |
| will state in writing the exact amount of the | | | | |