Mello-Roos San Diego
Mello-Roos charges, lookup and end dates
- Most districts set the special tax by each parcel's benefit rather than by assessed value.
- The County lists each parcel's Mello-Roos charges in its Special Assessments search, by parcel number.
- The City of San Diego stops each district's tax once the bonds are paid, with final levies from 2029-30 in Santaluz to 2036-37 in Black Mountain Ranch.
The County Auditor and Controller adds each district's special tax to the property tax bill at the district's request, and the Treasurer-Tax Collector collects it.
What is Mello-Roos and why newer neighborhoods pay it
A Community Facilities District, or Mello-Roos district, levies a special tax under a 1982 state law to repay bonds for public facilities and services. A city, county or school district forms a district with two-thirds approval of its voters or landowners and sells bonds for schools, fire stations, parks or roads.
Local governments form these districts in developing areas, such as Otay Ranch and Eastlake, and can finance only new or additional facilities and services.
How to look up Mello-Roos on a San Diego parcel
- Take the parcel number from the tax bill, or look the address up on the Assessor's Parcel Quest tool.
- Enter it at specialassessments.sandiegocounty.gov and print the detail page with each CFD and its administrator's phone number.
- Call the administrator, or open the Auditor's active district list, for the rate, the yearly increase and the bond maturity date.
- Most districts allocate the tax by benefit: square footage for new schools and street frontage for new roads.
- Each district sets a maximum yearly increase in its Rate and Method of Apportionment, the formula adopted at formation.
- The Auditor's Property Tax Services answers questions at 858-694-2901 when an administrator cannot be reached.
Mello-Roos San Diego end dates for City districts
| City of San Diego district | Final bond maturity | Final levy year |
|---|---|---|
| CFD 2, Santaluz, areas 1 and 3 | September 1, 2030 | 2029-30 |
| CFD 2, Santaluz, area 4 | September 1, 2033 | 2032-33 |
| CFD 3, Liberty Station | September 1, 2036 | 2035-36 |
| CFD 4, Black Mountain Ranch Villages | September 1, 2037 | 2036-37 |
- The City of San Diego levies a district's tax no more than 30 years after it first issues the district's bonds; the City made its final CFD 1 levy in Miramar Ranch North in 2019-20.
- An owner can prepay the lien under the district's formula through the City's administrator, NBS Government Finance Group.
- Carlsbad, San Marcos, Chula Vista and Poway Unified run their own districts; each administrator gives its end date.
Mello-Roos on a sample San Diego County tax bill
In its sample bill, the Treasurer-Tax Collector taxes a home assessed at $300,000, with $725 of fixed charges, which may include Mello-Roos:
- Base levy: 1 percent × $300,000 = $3,000
- Voter-approved bonds: 0.12222 percent × $300,000 = $366.66
- Fixed charges, which may include Mello-Roos: $725
- Total: $3,000 + $366.66 + $725 = $4,091.66, about 1.36 percent of assessed value
- Without fixed charges: $3,366.66, about 1.12 percent
Mello-Roos disclosure when buying or selling a home
- On a new home, the Department of Real Estate requires the Public Report to list the district debt on the subdivision.
- On a resale, the title company reports the recorded lien without the amount or the bond term; the buyer or agent asks the district administrator for both.
- A seller makes a good-faith effort to disclose a district's special tax to the buyer (Civil Code section 1102.6b).
When to hire a CPA for Mello-Roos
Bring in a CPA before deducting a Mello-Roos charge. The IRS treats taxes for local benefits as nondeductible "unless they're for maintenance, repair, or interest charges" (Topic 503). A CPA can sort a district's charge into those parts. Find one through how to choose a CPA.