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Mello-Roos In purchasing your new home, your future monthly payments will be made up of principal, interest, real property taxes and insurance, but what is the tax for the Community Facilities District, otherwise known as a Mello-Roos District? The LTA has answered some of the questions most commonly asked about the Mello-Roos Community Facilities Act.
What is a Mello-Roos District?
A Mello-Roos District is an area where a special tax is imposed on those real property owners within a Community Facilities District. This district has chosen to seek public financing through the sale of bonds for the purpose of financing certain public improvements and services. These services may include streets, water, sewage and drainage, electricity, infrastructure, schools, parks and police protection to newly developing areas. The tax you pay is used to make the payments of principal and interest on the bonds.
Are the assessments included within the Proposition 13 tax limits?
No. The passage of Proposition 13 in 1978 severely restricted local government in its ability to finance public capital facilities and services by increasing real property taxes. The "Mello-Roos Community Facilities Act of 1982" provided local government with an additional financing tool. The Proposition 13 tax limits are on the value of the real property, while Mello-Roos taxes are equally and uniformly applied to all properties.
What are my Mello-Roos taxes paying for?
Your taxes may be paying for both services and facilities. The services may be financed only to the extent of new growth, and services include: Police protection, fire protection, ambulance and paramedic services, recreation program services, library services, the operation and maintenance of parks, parkways and open space, museums, cultural facilities, flood and storm protection, and services for the removal of any threatening hazardous substance. Facilities which may be financed under the Act include: Property with an estimated useful life of five years or longer, parks, recreation facilities, parkway facilities, open-space facilities, elementary and secondary school sites and structures, libraries, child care facilities, natural gas pipeline facilities, telephone lines, facilities to transmit and distribute electrical energy, cable television lines, and others.
When do I pay these taxes?
By purchasing an interest in a subdivision within a Community Facilities District you can expect to be assessed for a Mello-Roos tax which will typically be collected with your general property tax bill. These special tax payments are subject to the same penalties that apply to regular property taxes.
How long does the tax stay in effect?
The tax will stay in effect until the principal and interest on the bonds are paid off along with any reasonable administrative costs incurred in collecting the special tax or so long as it is needed to pay the expenses of services, but in no case shall exceed 40 years.
What happens if a general tax payment is not made on time?
Because the Mello-Roos tax is typically collected with your general property tax bill, the Facilities District that obtained the lien may withdraw the assessment from the tax roll and commence judicial foreclosure.
What is the basis for the tax?
Most special taxes levied on properties within these districts have been structured on the basis of density of development, square footage of construction, or flat acreage charges. The act, however, allows for considerable flexibility in the method of apportionment of taxes, and the local agencies may have established an entirely different method of levying the special tax against property in the district in question.
How much will the Mello-Roos payment be?
The amount of tax may vary from year-to-year, but may not exceed the maximum amount specified when the district was created. In the case of the purchase of a new house within a subdivision, the maximum amount of the tax will be specified in the public report. The Resolution of Formation must specify the rate, method of apportionment, and manner of collection of the special tax in sufficient detail to allow each landowner or resident within the proposed district to estimate the maximum amount that he or she will have to pay.
How is the special tax reflected on the real property records?
The special tax is a lien on your property, essentially like a regular tax lien. The lien is recorded as a "Notice of Special Tax Lien" which is a continuing lien to secure each levy of the special tax.
How are Mello-Roos taxes affected when the property is sold?
The Mello-Roos tax is assessed against the land, but is not based upon the value of the property, therefore, the possible increased value of the property does not affect the amount of the tax when property is sold. The amount of the tax may not exceed the original maximum amount stated in the Resolution of Formation. Any delinquent payments must be satisfied before the sale of the real property since the unpaid amounts are a lien against the property.
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Real Estate, Houses , Homes, Cottages, Lake Huron Waterfront Property, Waterfront Property on Inland Lakes,Land, Tawas, East Tawas, Tawas City, AuGres, Oscoda Michigan
TO SEARCH LISTINGS
GO to www.all-northern-michigan.com
WELCOME TO NORTHEASTERN LOWER MICHIGAN!
Best Choice Realty, Inc. means this sincerely and knows that once you visit NORTHEASTERN LOWER MICHIGAN you, too, will feel the same way we do about the abundance of nature and beauty to be found in NORTHEASTERN LOWER MICHIGAN!
Iosco County, Arenac County and Ogemaw County are just an hours drive north of Saginaw, but offer a full range of recreational activities for those seeking an escape from city life. The Huron National Forest offers excellent hunting and the AuSable River has great fishing. Near Hale, Sand Lake Heights and the surrounding areas there are hiking, snowmobile and cross country ski trails and many all sports lakes for swimming, water skiing and fishing. And, of course, Au Gres is on the shore of Saginaw Bay and Tawas, East Tawas and Oscoda are on the shores of Lake Huron. So come up to Iosco County, Arenac County and Ogemaw County, check out the real estate available here and enjoy life!
Best Choice Realty, Inc. maintains an outstanding reputation in the real estate profession and we can assure you that YOU and YOUR needs are our #1 priority. Our real estate office and associates are members of real estate multi-list services (RMLS) covering Iosco County, Arenac County, Ogemaw County and Alcona County.
Our high quality staff of professional Real Estate Consultants have been trained to make your real estate move go as smoothly as possible. Each real estate associate is kept up to date with the real estate market and the changes in the real estate industry by ongoing real estate training and informational meetings. We're proud to have real estate agents that go the " extra mile " to provide you with the utmost in professional real estate service. We are locally owned and staffed by individual real estate agents who have spent years living and working in this area. We know the area and we know the real estate market.
We are a full service real estate company offering sellers agency, buyers agency, broker price opinions and real estate consulting. We have residential, commercial, resort, lakefront, acreage, hunting land and recreational properties available. If you are considering a move, or just have a question concerning real estate, don't hesitate to contact us. We personally guarantee the highest level of professional service...
Sincerely,
Michael D. Fournier
President/Associate Broker
BUYERS: "LOYALTY PAYS OFF"
Some buyers like to leave their name with three or four sales people. Although it may seem to be to the buyer's advantage to have a number of real estate agents to work with, it is usually a very ineffective approach. The assumption is that many real estate agents will produce more results than working exclusively with one. THIS IS NOT TRUE! YOU NEED THE TOTAL COMMITMENT OF ONE REAL ESTATE AGENT. My advice to you is to find a Realtor whom you feel will get the results you need. Tell this real estate agent that you will work exclusively with him or her ( SIGNING A BUYERS AGENCY CONTRACT IS RECOMMENDED ) as long as you see the effort required to get the job done. In this way, you will have a dedicated real estate agent who will take on the personal responsibility of handling all the details of your home purchase.
REAL ESTATE AGENTS are paid on a straight commission basis. They don't receive a salary. They are not on an expense account. They don't get paid unless they SELL YOU SOMETHING. This is why working with more than one agent is not a good idea. None of the real estate agents know if their efforts will result in any income. If a agent knows that you will be loyal to them that is all the motivation needed to provide, a real estate agent, dedicated to getting the job done right.
PRICING YOUR HOME TO SELL
Get a comparative market analysis.
EXPIRED
Out of range. Up to 35% of all homes put on the market never sell. The prices at which these homes expired represent the overpriced range. IF YOU PRICE HERE, THEN YOUR LISTING WILL ALSO EXPIRE!
CURRENTLY FOR SALE
Represents the upper end of the market. These are asking prices only. They have not been attained in the real estate market. Examine the number of days on the market and if it has been a long time, the homes(s) is/are priced to high.
SOLDS: - TRUE MARKET VALUE.
NEVER SELECT A REAL ESTATE AGENT BASED ON THE PRICE THAT THEY TELL YOU!
A real estate agent has no control over the price the market will allow. SELECT YOUR REAL ESTATE AGENT FIRST based on competence of the real estate agent, company and services provided. Don't encourage or allow the real estate agents to " bid the price up", by telling you what they think you want to hear, to get the listing. True professional real estate agents will give you candid feed back and factual information, based on "SOLD PROPERTIES", so you can price within the "MARKET".
BENEFITS TO PROPER PRICING
1. FASTER SALE
2. LESS INCONVENIENCE
3. EXPOSURE TO MORE PROSPECTS
4. BETTER RESPONSE FROM ADVERTISING AND DRIVE BY CALLS
5. INCREASED SALESPERSON RESPONSE
6. ATTRACTS HIGHER OFFERS
7. MEANS MORE MONEY TO SELLERS
REASONS SELLERS USE WHEN OVERPRICING
1. WE'VE MADE IMPROVEMENTS: Improvements should be made for enjoyment, not for sale. You cannot add an item to a home, select it to your style, use it, then expect a buyer to pay the original cost.
2. WE NEED THE MONEY: An owners need for money does not increase the value of the home.
3. BUYING IN A HIGHER REAL ESTATE MARKET: Real estate values are location specific. High real estate values in the destination market/home do not increase the value of your existing home.
4. WE PAID THIS MUCH: Chances are you paid market value. It's not that the price was too high, but sometimes the market experiences subsequent changes. The real estate market is effected by interest rates, the economy and supply and demand.
PRINCIPLES OF VALUATION
1. COST - The amount actually paid for a property plus any capital improvements made since the purchase.... 2. PRICE - The stated amount an owner is willing to accept for a property.... 3. VALUE - The amount a single buyer is willing to pay given a certain set of circumstances.... 4. MARKET VALUE - The amount many buyers would pay a reasonable, willing, seller. It is based on the history of similar real estate recently sold in the area.
Office is Locally Owned and Operated.
1106 Bay Drive, Tawas City, Michigan 48763 - 1-866-585-5980
FULL SERVICE NORTHERN MICHIGAN REAL ESTATE COMPANY, RESIDENTIAL REAL ESTATE, RESORT REAL ESTATE,WATERFRONT PROPERTY, INLAND LAKEFRONT PROPERTY, LAKE HURON PROPERTY, COTTAGES, HOMES, HOUSES, ACERAGE, COMMERCIAL REAL ESTATE, NORTHERN MICHIGAN PROPERTY, INVESTMENT PROPERTY, BUYERS AGENCY, SELLERS AGENCY
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Marketing Zip-codes: 48763, 48748, 48730, 48750, 48703, 48654, 48738, 48661, 48739, 48740, 48770
Tawas Michigan Real Estate, Tawas City Michigan Real Estate, East Tawas Michigan Real Estate, Oscoda Michigan Real Estate, Au Gres Michigan Real Estate, AuGres Michigan Real Estate, Hale Michigan Real Estate, Iosco County Michigan Real Estate, Arenac County Michigan Real Estate, Alcona County Michigan Real Estate, Ogemaw County Michigan Real Estate, National City Michigan Real Estate, Sand Lake Heights Michigan Real Estate, Hale Michigan Real Estate, Lake Huron Michigan Real Estate, Northern Michigan Real Estate, Northeastern Michigan Real Estate. Providing a superior level of informed, professional real estate services, CMA'S, BPO's, Consulting, to buyers and sellers in the greater Northern Michigan Real Estate Market, Tawas City, East Tawas, Sand Lake Heights, National City, Oscoda, Au Gres, Hale, Greenbush, Tawas, Iosco County, Arenac County, Alcona County and Ogemaw County, Michigan.
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