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