A seller's property is located within a Mello-Roos Community Facilities District. Which of the following statements correctly describes how Mello-Roos special taxes are treated under California law?
Correct Answer
D) They are not subject to Proposition 13's limitations and may increase as defined in the district's bond documents
Mello-Roos special taxes are authorized under the Mello-Roos Community Facilities Act of 1982 (Government Code §53311 et seq.) and are voter-approved levies that fall outside Proposition 13's framework. They are not subject to the 1% base rate cap or the 2% annual increase limitation. The rate and escalation schedule are set by the bond documents establishing the Community Facilities District and must be disclosed by the seller to the buyer.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Intestate succession is the legal process by which a deceased person's property is distributed according to state law when they die without a valid will. State statutes determine the order of inheritance.
Marketable title is title that is free from reasonable doubt as to who the owner is and free from liens, encumbrances, or defects that would cause a reasonable buyer to hesitate before purchasing. It is also known as merchantable title.
Probate is the legal process by which a deceased person's will is validated by the court and their estate is administered, including the transfer of real property to the named beneficiaries or heirs.
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