What Are Mello Roos?

What Are Mello Roos? Mello Roos was created in 1982 and named after two legislators Henry Mello and Mike Roos. They found a way around the tax limiting proposition 13. Mello-Roos is a governmental special tax used to improve public infrastructure and services. Improvements may include roads, schools, parks, libraries, along with fire, police and ambulance services. The special tax is secured by a lien against property and is usually collected as part of the property’s annual tax bill. A line item on the tax bill documents the amount. California home buyers receive a Mello-Roos disclosure as part of California’s Mandatory Property Tax Disclosure law. Failure to provide a Mello-Roos disclosure places the seller in jeopardy of non-disclosure litigation. The tax will stay in effect until the principal and interest on the bonds are paid off and shall not exceed 40 years.

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