finance

Mello-Roos Special Tax

A special tax levied by a Community Facilities District formed under California's Mello-Roos Community Facilities Act of 1982 to fund infrastructure and services such as schools, parks, and fire protection. It appears on the property tax bill separately from the 1% Proposition 13 rate, is not based on value, and requires two-thirds voter approval. A seller of one-to-four-unit residential property must make a good-faith effort to obtain and deliver a Notice of Special Tax; late delivery gives the buyer a 3-day or 5-day termination right.

Exam tip: Mello-Roos is a special tax from a CFD, not part of the 1% ad valorem levy. The seller delivers the Notice of Special Tax.
Example: A Temecula home carries a $2,100 annual CFD tax. The notice is mailed to the buyer June 5, so the buyer may terminate through June 10.

1. A Mello-Roos special tax is levied by a:

Answer & explanation

Answer: D. The Mello-Roos Community Facilities Act of 1982 lets local agencies form CFDs that levy special taxes for facilities and services. The tax is separate from the 1% Proposition 13 rate.

Related terms & state variants

ad valorem tax Proposition 13 (California) (CA)special assessment

Sources

Source verification pending. Confirm current requirements with your state regulator.

Last verified: 2026-10-23