Mello-Roos in California: What the Special Tax Is and How to Check a Parcel

By Matthew Martinez, Founder, CEO & Managing Broker, Diamond Real Estate Group. California DRE #01869679.

Mello-Roos is a special tax levied by a community facilities district (CFD), a financing district formed under the Mello-Roos Community Facilities Act of 1982 (Government Code 53311 and following). It is collected on the regular county property tax bill, on top of the base property tax, and usually repays bonds that built roads, schools, parks, sewers or other public facilities in newer neighborhoods. Before you buy, you can identify every CFD on a parcel from the tax bill, the county’s direct-charge records and a Notice of Special Tax, and you should ask how long the tax runs and whether it can be paid off.

This guide covers how CFDs are formed and taxed, what sellers and builders must disclose, how to look up a parcel in counties Diamond serves, and what to ask about term and prepayment.

How a community facilities district works

A city, county, school district or other local agency forms a CFD, and the special tax is approved by a two-thirds vote. Placer County’s Auditor-Controller summarizes the mechanics: the district issues bonds, the special tax is placed on the property tax bill as a direct charge, the charge covers bond principal and interest, and it continues until the bonds are paid off. If the charge goes unpaid, the levying agency may foreclose.

The statute puts guardrails on residential parcels. Under Government Code 53321, the resolution of formation must spell out the rate and method of apportionment clearly enough that each owner can estimate the maximum tax. For a residential parcel:

• The maximum is a fixed dollar amount, set no later than when the parcel first becomes subject to the tax for private residential use (an occupancy permit triggers that status).
• Annual escalation is capped. The maximum may rise by up to 2% a year.
• Other owners’ defaults have a limit. Delinquencies elsewhere in the district cannot raise a residential parcel’s tax in a year by more than 10% above what it would otherwise have been.
• There is an end year. The resolution must name the tax year after which no further facilities tax may be levied, although delinquent amounts can still be collected afterward.
• Prepayment may be allowed. The resolution may set conditions for prepaying and permanently satisfying the obligation.

Those residential limits came from 1991–92 amendments and, per the statute, do not apply to districts formed before January 1, 1993. Older districts follow whatever their own formation documents say.

A CFD can also levy a special tax for ongoing services such as park or landscape maintenance. That kind of tax is listed separately on the Notice of Special Tax and may not end when facility bonds are retired, so read the notice line by line.

What appears on the tax bill

Mello-Roos is not part of the 1% base tax. Counties list it among the "direct charges" or "direct levies," which are per-parcel amounts not based on assessed value. Sacramento County’s Assessor lists Mello-Roos bonds as one example alongside library, reclamation district, park maintenance, and landscape and lighting charges. El Dorado County’s Auditor-Controller adds 1915 Act assessments, PACE installments, service charges and delinquent utility bills to the same category.

Two points from the county pages matter at purchase time:

1. The bill is not the whole story. El Dorado County notes that CFD liens are recorded with the Recorder-Clerk, and a lien can exist even when no installment shows on the current bill. Your preliminary title report is where recorded CFD notices appear.
2. The county does not set the amount. Each levying district answers for its own charge. Sacramento County directs disputes to the issuing entity, and El Dorado County says an enrolled charge generally comes off the bill only if it was an error.

CFD installments are paid with the regular bill. The City of Roseville notes they are due on the same December 10 and April 10 dates and carry the same penalties as other property taxes. For how a new purchase changes your first year of bills, see our supplemental tax bill guide.

Disclosure rules: who must tell the buyer

California has three overlapping notice rules. The right one depends on whether you are buying from a builder or from an existing owner.

Under 53341.5, a willful violation by a subdivider exposes it to the buyer’s actual damages and a fine of up to $500. A missing notice does not undo the sale.

The resale rule in 1102.6b also covers 1915 Act bond assessments and contractual assessment (PACE-type) liens. A seller may sometimes use a substantially equivalent notice, such as the most recent tax bill or an itemization of current assessments. A private-source notice for a CFD must show the district name, the current year’s tax, the maximum tax, the maximum annual increase, the last year the tax can be levied, and a contact number if available. The statute adds that agents have no duty to discover a special tax they do not actually know about, which is why your own parcel check matters. Our guide to California seller disclosures shows where this fits in the larger disclosure package.

The agency notice under 53340.2 states the maximum special tax, any annual increase, the tax years it applies to, any separate service tax, the facilities and services it may fund, and how to get the resolution of formation.

How to look up a parcel’s CFDs in counties Diamond serves

Start with the assessor’s parcel number (APN). Then work through the county’s tools:

• Placer County. On the tax bill, a Mello-Roos charge has a tax code description ending in "MR." The Auditor-Controller says only the levying entity has maturity information; phone numbers are on the bill and on the county’s Direct Charge Contacts list (Placer FAQ). In Roseville, the city points owners to its Property Information Tool for the APN, then to the Placer County site for taxes. Its district administrator, Willdan Financial Services (1-800-755-6864), provides CFD formation documents and handles payoff questions. Our Placer County tax and assessment records guide and Roseville page have local context.
• Sacramento County. Use the Tax Collector’s online bill system and open the "Direct Levy’s Portion" link for the parcel, or check the Auditor-Controller’s Direct Levy District Listings by fiscal year (Sacramento direct levies). Newer areas of Elk Grove and other parts of the county are worth checking line by line; see our Sacramento County buyer guide.
• El Dorado County. The Treasurer-Tax Collector’s online bill lookup shows direct charges. The Auditor-Controller’s Direct Charge Master Index can be searched by tax code, district or bill description and lists district contacts. The Property Tax Division is at (530) 621-5470, ext. 4 (El Dorado direct charges).
• Yolo County and other counties. The process is the same everywhere: get the current secured bill, list each direct charge, then call the agency named next to it. Our Yolo County special tax records guide walks through it.

Then ask the levying agency or its administrator for the Notice of Special Tax, and compare it with the preliminary title report.

Term, payoff and prepayment

Buyers usually want to know when the tax ends and whether they can pay it off early:

• End date. For districts formed under the post-1992 rules, the formation resolution names the last tax year for the facilities tax. The agency notice states the years the tax applies. A service tax, if there is one, is listed separately.
• Prepayment. Prepayment is possible only if the rate and method of apportionment allows it. Request a written prepayment calculation from the levying agency or its administrator. The number usually depends on bond terms and timing, so get a current figure instead of relying on an old one.
• Paying off in escrow. If a seller agrees to prepay a CFD, write it into the contract, get the agency’s figure, and have escrow confirm what the payoff covers. Who pays what at closing is negotiable; see who pays closing costs in California.

Investors comparing rental parcels should model the special tax as a fixed annual cost alongside the base tax. Our California property tax guide for investors covers the rest of the bill.

Questions people ask

Is Mello-Roos the same as property tax?

No. It is a special tax collected on the property tax bill, but it is not part of the 1% base rate and is not based on assessed value. It is a per-parcel direct charge set by the CFD’s rate and method of apportionment.

How do I know if a house has Mello-Roos?

Check the current tax bill’s direct charges (in Placer County, look for tax codes ending in "MR"), the preliminary title report for recorded CFD notices, and the Notice of Special Tax from the levying agency. A lien can exist even when no installment shows on the current bill.

Can Mello-Roos go up every year?

For residential parcels in districts formed on or after January 1, 1993, the maximum may increase by up to 2% a year under Government Code 53321. The actual levy can be below the maximum. Older districts follow their own formation documents.

What happens if other owners in the district stop paying?

For residential parcels covered by the post-1992 rules, other owners’ delinquencies cannot raise your tax in a fiscal year by more than 10% above what it would otherwise be. Unpaid special taxes can lead the levying agency to foreclose on the delinquent parcel.

Can I cancel a purchase after receiving a Notice of Special Tax?

The statutory notice forms give the buyer a right to cancel within 3 days after in-person delivery or 5 days after mailing. Talk with your agent or attorney about how that interacts with your contract’s contingencies.

Does Mello-Roos ever go away?

Facility taxes end in the final tax year named in the formation resolution, or earlier if the obligation is prepaid where the resolution allows it. A separate service tax may follow different terms. Both appear on the agency notice.

How much does the Notice of Special Tax cost?

Under Government Code 53340.2, the designated agency office must provide it within five working days of a request and may charge up to $15.

Sources & notes

1. Gov. Code 53311 (Mello-Roos Community Facilities Act of 1982): name and scope of the Act.
2. Gov. Code 53321: rate and method of apportionment, 2% escalation cap, 10% delinquency limit, end year and prepayment for residential parcels.
3. Gov. Code 53340.2: Notice of Special Tax, 5-working-day delivery, $15 fee cap, notice contents.
4. Gov. Code 53341.5: subdivider notice before contract, buyer cancellation, penalties.
5. Civil Code 1102.6b: seller’s resale disclosure of CFD, 1915 Act and contractual assessment liens.
6. Placer County Auditor-Controller: Mello-Roos direct charges and related FAQ.
7. Sacramento County Assessor: Direct levies.
8. El Dorado County Auditor-Controller: Direct charges.
9. City of Roseville: Special taxes and assessments.

Statutes can be amended; confirm the current text on leginfo.legislature.ca.gov, and get CFD amounts, end years and payoff figures from the levying agency for the specific parcel.

General information, not legal, tax or lending advice. Updated November 2026. Primary sources are linked in this guide.

Related: Supplemental tax bills · California seller disclosures · Buy with Diamond