 Some Davis and Yolo County homes have special taxes. Mello Roos taxes are additional encumbrances added to basic property taxes. Not all homes have this additional Mello Roos tax. When homes shopping, I will let you know which homes you see do or do not have Mello Roos taxes. Usually only the newer areas where new schools, fire stations, libraries and such had to be built will have this addition property tax. A Mello Roos tax (bond) is a method of financing or underwriting the cost of public improvements or infrastructure such as utilities, roads, recreational facilities, schools, libraries, fire stations, etc. that are needed to support new development.
When purchasing a home with Mello Roos financing always investigate the basis for the tax, its duration and any potential for increase. Also, be aware that this added burden will affect your qualifying ratios.
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