The standard tax rate in Murrieta is usually 1.12% give or take a few hundreths of a percent depending on where you're at, but when you add a Mello-Roos tax, that effective rate could hit 2.2% plus.
I thought I'd write a little about Mello-Roos taxes since there is always some confusion over it. A Mello-Roos Community Facility District is the full name and is most commonly referred to as Mello-Roos, special assessment or CFD. A Mello-Roos Community Facility District is an area or development that has a special tax imposed on the owners of the real property in that district for the purpose of building the infrastructure required for the new community. These items can include streets, schools, parks, water, sewage, drainage, new police and fire services as well as electricity. The builder usually seeks financing in the way of selling bonds to cover the costs of the initial build out. Those costs are then levied onto the property owner in the form of a Mello-Roos tax. These taxes usually last for 30-40 years.
Essentially what you're paying for with the Mello-Roos taxes is the cost of building everything (streets, schools, parks, water, sewage, drainage) in the development spread out over every property in that development.
It's very important for you and your agent to know the Mello-Roos taxes on the house you're looking to buy. It can make a huge difference in your payment.
Here is the data from an actual tax bill from 2012. I did not include the address for obvious reasons. This is a property in Murrieta with an assessed value of $322,000. The $1,840.03 is your standard base tax rate. Each line item that follows that is a special assessment, or Mello-Roos tax. As you can see, there is an extra $4,101.76 in taxes on this property per year, or $341.813 per month on top of your standard taxes. Thats a grand total of $648.485 per month and $7,781.82 just in property taxes.
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Taxing Agency |
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Installment 1 |
Installment 2 |
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Base Rate 1.14288% |
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$1,840.03 |
$1,840.03 |
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FLD CNTL STORMWATER/CLEANWATER |
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$2.00 |
$2.00 |
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CSA 152-MURRIETA STORMWATER |
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$5.00 |
$5.00 |
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Murrieta CSD |
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$22.72 |
$22.72 |
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Murrieta Parks & Rec |
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$22.50 |
$22.50 |
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Murrieta Fire Protection |
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$20.00 |
$20.00 |
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Murrieta L&L 19 |
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$341.62 |
$341.62 |
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Murrieta CFD 2000-2 The Oaks |
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$1,623.57 |
$1,623.57 |
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MWD STANDBY EAST |
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$3.47 |
$3.47 |
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EMWD STANDBY-COMBINED CHARGE, |
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$10.00 |
$10.00 |
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In other words, if you were choosing between two houses at the same price with one of them in this Mello-Roos area versus one that is not, you would be paying an extra $341.81 per month for the property in this Mello-Roos community. Make sure your agent verifies this information on any property you're looking at. As you can see, it can make a big impact on your payment.
Please feel free to contact me with any questions or concerns.
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