A Mello-Roos Tax Hit Is Anything but Mellow.

Purchasing within the S.L. Rey community can save you up to $3,500 in annual property taxes vs. purchasing in comparable nearby master-planned communities subject to “Mello-Roos” tax rates. It’s simple math. Buying a new home in a Mello-Roos district may cost you more. Every tax season, come November and February, you’ll open that property tax statement and it will feel like a punch to the gut.

Here are a few key things you need to know.


WHAT IS A MELLO-ROOS OR COMMUNITY FACILITY DISTRICT?

Community Facilities Districts (CFDs), commonly known as Mello-Roos, are a form of financing that can be used by cities, counties, and special districts. CFDs are formed to finance major improvements and services by raising money through special taxes within the district.


HOW ARE CFD TAXES PAID?
In almost all cases, CFD taxes are levied as part of an owner's annual property tax.


IS S.L. REY LOCATED WITHIN A CFD?
No! Fortunately, S.L. Rey is not located within a CFD. Therefore, the community’s property tax rate is approximately 1.1%.


CAN CFD TAXES CHANGE OVER TIME?
Yes. A “Notice of a Special Tax” is provided to residents annually that includes the current year’s maximum tax for the parcel, the rate at which that maximum tax may increase per year, and the final date in which special taxes may be collected for bonded indebtedness.


ARE S.L. REY PROPERTY TAXES LOWER THAN OTHER NEARBY NEIGHBORHOODS WITHIN CFDS?
Yes! New homes with an average purchase price of $700,000 located within comparable neighborhoods subject to a CFD have an average property tax rate of approximately 1.6%. That’s roughly 0.5% higher than S.L. Rey’s approximate property tax rate of 1.1%.


WHAT DOES THIS MEAN FOR ANNUAL PROPERTY TAX PAYMENTS?
Buying a new home at S.L. Rey may yield lower annual property taxes than comparable neighborhoods within CFDs, which can lead to more money in your pocket every year. Whether you’ve had your sights set on a tropical vacation for some time or are building up your children’s college funds, you can rest assured your property tax savings earned by purchasing a home at S.L. Rey will go a long way.


All information provided is approximate and for general informational purposes only and does not constitute any representation as to the applicable tax rates in any other community. California West Communities reserves the right to alter or revise any and all information such as but not limited to tax rates, sales prices and estimated tax savings without prior notice and without obligation. The information provided does not constitute and should not be relied upon as financial, legal, taxation or other professional advice and should be independently verified.