A buyer is purchasing a home in Sacramento. The property is located within a Mello-Roos Community Facilities District, and the seller received a supplemental property tax bill several months ago resulting from their own purchase of the property two years prior. Which statement BEST describes how each of these tax obligations is handled at closing?
Correct Answer
B) The current-year Mello-Roos special tax is prorated through escrow based on the closing date; the seller's outstanding supplemental tax bill is the seller's personal obligation and is not prorated — it must be satisfied by the seller independently
These two tax obligations are legally distinct. Mello-Roos special taxes (Gov. Code §53317 et seq.) are levied annually against the parcel and are prorated through escrow in the same manner as regular property taxes — the seller is credited or debited for the portion accrued through the closing date, and the buyer assumes responsibility from that date forward. A supplemental tax bill, by contrast, is triggered by a specific change-of-ownership reassessment event under Rev. & Tax. Code §75.11. When the bill results from the seller's own prior acquisition, it is a personal tax obligation of the seller tied to that reassessment event — not a recurring annual levy on the parcel. It is not subject to proration and must be paid by the seller; it does not transfer to the buyer through escrow.
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- → A property in a California Mello-Roos district has a base Proposition 13 property tax of 1% on its assessed value of $600,000, plus a Mello-Roos special tax of $3,200 per year. What is the total annual property tax bill for this property?
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