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Practice Of Real Estate DisclosuresMello_roos_and_special_taxesMEDIUM

Under California law, a Mello-Roos Community Facilities District has specific characteristics. All of the following are true about Mello-Roos districts EXCEPT:

Correct Answer

C) The Mello-Roos special tax is included in the standard 1% Proposition 13 base tax rate

The Mello-Roos special tax is NOT included in the 1% Proposition 13 base rate. It is a separate, additional tax levied on top of the standard property tax. This is a critical distinction that is frequently tested on the California real estate exam.

Answer Options
A
The special tax is levied based on a formula in the CFD's resolution of formation
B
The tax is used to repay bonds that financed public infrastructure
C
The Mello-Roos special tax is included in the standard 1% Proposition 13 base tax rate
D
Property owners in the district voted to approve the formation of the CFD and the special tax

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Related Topics & Key Terms

Key Terms:

mello_roosproposition_13separate_taxadditionalGov_Code_53340

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