Property Taxes and Mello-Roos in San Diego

Over 1 million tax bills are sent out by the County Tax Collector every year in San Diego County. There are a number of different factors that affect property taxes within San Diego County. Below is a list of some of the different types of property taxes levied on San Diego property and real estate. This list is not all encompassing, so be sure and check with a San Diego property tax advisor for further advice regarding your property taxes.

The property tax rate in California is 1% of the assessed value of real estate, in addition to any fees, bonds and/or special charges. Properties can only be reassessed when new construction is completed or when there is a change in ownership on the property.

The passage of Proposition 13 in 1978 limits the increase of property taxes in California. Prop 13 also mandated that any future increases in property tax rates need the support of two-thirds of the Legislature for approval. This provision dramatically limited the ability of the legislature to increase taxes.

The passage of Prop 13 noticeably limited the Legislature’s ability to increase taxes. It does allow for annual increases of up to 2% of a property’s value unless there is a change in ownership or new construction is completed however. In 1982, the Capital Facilities Act was passed. The act is better known by its creators, Senator Henry Mello and Assemblyman Mike Roos (i.e. Mello-Roos taxes).

Mello-Roos districts are bonds established by local governments to finance specific public facilities and services such as schools, roads and libraries at the request of a developer. San Diego communities or districts that impose a Mello-Roos fee are distributed throughout San Diego County but are most common in newer subdivisions.

In addition to the 1% tax rate allowed by Prop 13, Mello-Roos fees are a separate charge to the property tax bill. The length of time that Mello-Roos fees are levied for is linked to the amount of time needed to pay off the bond, which is typically 20-25 years. Mello-Roos fees range from $174 to over $3000 annually. The average Mello-Roos fee for San Diego communities was $1,488 in 2006.


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