In California, a real estate agent prepares a CMA for a home in a community that has both a Mello-Roos special tax and a Landscape and Lighting Assessment District (LLAD) levy. A potential buyer asks the agent to explain how these assessments differ from the standard Proposition 13 property tax. Which statement is MOST accurate?
Correct Answer
B) Both Mello-Roos and LLAD assessments are levied in addition to the Prop 13 base tax rate and are NOT subject to the 2% annual increase limitation
Under California law, Mello-Roos special taxes (Government Code §53311 et seq.) and Landscape and Lighting Assessment District levies are both separate from the Proposition 13 base tax rate of 1%. They are added on top of the Prop 13 tax and are NOT subject to the 2% annual increase limitation. This is a critical distinction in California property taxation that directly affects property valuation.
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Previous Question
A California real estate agent is selecting comparable sales for a CMA on a property in Fresno. The agent finds a sale from 14 months ago in the same neighborhood. Under standard California CMA practice, why might the agent hesitate to use this comparable?
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An appraiser identifies a comparable sale in which the seller paid $15,000 toward the buyer's closing costs. Under USPAP and California appraisal practice, how should this seller-paid concession be treated when using this comparable in the sales comparison approach?