Are you seeing “special tax” lines on a property tax bill and wondering what that means for your monthly payment? If you are shopping in San Marcos, you will likely come across Mello‑Roos. It is normal to have questions about how it works and how it affects your budget. In this guide, you will learn what Mello‑Roos is, where you will find it in San Marcos, how lenders treat it, and how to verify the exact amount before you write an offer. Let’s dive in.

Mello‑Roos, in plain English

Mello‑Roos is a special tax created by a local Community Facilities District, often called a CFD. Cities, counties, or special districts form CFDs to fund public improvements or services like roads, parks, water and sewer systems, fire stations, and in some cases schools. The legal framework comes from the Mello‑Roos Community Facilities Act of 1982 in the California Government Code. You can read the statute at the state’s legislative site under California Government Code §53311 et seq..

This tax is different from your base property tax under Proposition 13. It is also separate from voter‑approved school bonds and parcel taxes that may appear on the same bill. Mello‑Roos is listed as its own line, usually by the CFD’s name or number with a description such as “Special Tax.”

Where you will see it in San Marcos

You will most often see Mello‑Roos in newer or master‑planned communities that needed roads, utilities, and amenities built upfront. In San Marcos, planned neighborhoods developed since the 1980s are the common places to find CFDs. Within a single community, amounts can vary by lot type, size, or phase because each CFD sets its own Rate and Method of Apportionment.

The big takeaway is that Mello‑Roos is not one uniform number across San Marcos. Two homes on the same street can have different amounts. Always verify the parcel you are considering.

How to spot it on the tax bill

On a San Diego County property tax bill, Mello‑Roos appears as a separate line item. You will typically see:

• The CFD name and number
• A description such as “Community Facilities District Special Tax”
• The annual dollar amount for that parcel

To confirm the current year’s figure for a specific APN, use the county resources or ask the seller. The San Diego County Treasurer‑Tax Collector can provide current property tax bill information, and the San Diego County Assessor can help you confirm the APN and assessed value history.

How it changes your monthly budget

Lenders and savvy buyers treat Mello‑Roos as part of the monthly carrying cost. Here is the simple way to factor it in:

1. Get the annual amount. Pull it from the current tax bill, seller disclosures, or the county.
2. Divide by 12 to find the monthly impact.
3. Add that to your estimated payment along with principal and interest, homeowners insurance, HOA dues if any, and other voter‑approved taxes.

Example for illustration only: If the annual Mello‑Roos is $2,400, it adds $200 per month to your carrying costs. Your total payment becomes principal and interest plus monthly property taxes, plus $200 for Mello‑Roos, plus insurance, and any HOA dues. Use the actual parcel’s figure for accurate budgeting.

How lenders and appraisers view Mello‑Roos

Most lenders treat Mello‑Roos as a required recurring tax. That means it is included when they calculate your housing costs and your debt‑to‑income ratio. If your loan includes escrow for taxes and insurance, the Mello‑Roos amount is typically part of that escrow. Confirm with your loan officer how your program handles it and how annual increases are managed.

Appraisers rely on comparable sales. Homes with higher ongoing costs can sell for less or take longer to sell compared with similar homes without those costs. Appraisers may note the presence of special assessments in their report. This is one reason to compare properties using total monthly costs, not just list price.

Resale, buyer psychology, and negotiation

Recurring costs affect affordability, and that can shape how buyers compare options within San Marcos and nearby communities.

• Marketability. A higher special tax can narrow the buyer pool and sometimes lengthen time on market.
• Pricing and comps. Use comparable sales from inside similar CFDs when possible, since monthly costs line up better.
• Negotiation. As a buyer, you can request credits or a price adjustment if the assessment meaningfully changes affordability. As a seller, it helps to disclose early and present clear monthly totals so buyers make informed comparisons.

What to verify before you buy

For a property in San Marcos, gather these items during your review and contingency periods:

• Current San Diego County property tax bill. Confirms the exact current‑year Mello‑Roos for the APN. Start with the San Diego County Treasurer‑Tax Collector.
• Preliminary Title Report. Often lists special assessments and may reference the CFD.
• Seller disclosures. Look for special tax disclosures that name the CFD and the amount.
• Rate and Method of Apportionment (RMA). Explains how the tax is calculated, parcel classifications, annual escalation rules, and maximum rates. Request it from the seller, developer, or the city.
• Official Statement for any CFD bonds. Shows outstanding bonds and projected levy schedules.
• HOA documents and CC&Rs. May reference CFD obligations or other assessments.
• City records. The City of San Marcos can provide CFD formation resolutions, maps, and contacts.
• Lender confirmation. Ask your loan officer to confirm how their program treats the assessment for qualification and escrow.

For background on CFDs and municipal finance, see the California Debt and Investment Advisory Commission and consumer guidance from the California Association of Realtors.

Red flags and smart questions

Because each CFD is different, ask targeted questions:

• What is the exact annual amount for this APN right now?
• Is the levy fixed, tied to CPI, or set to increase by a schedule? What is the history of increases?
• How long will the tax remain? Are there bond payoff dates or sunset provisions?
• How does the RMA classify this parcel type compared with others in the neighborhood?
• Will the lender escrow the Mello‑Roos and how will they handle increases over time?

If answers are unclear or documentation is missing, press for the RMA and the latest tax bill before removing contingencies.

A quick buyer checklist

Use this simple list when you are comparing San Marcos properties:

• Get the APN and the current tax bill
• Confirm the annual Mello‑Roos amount and divide by 12
• Request the CFD’s RMA and any bond Official Statement
• Ask your lender how the assessment factors into approval and escrow
• Compare monthly totals: PITI plus Mello‑Roos plus HOA dues
• Consider resale by reviewing sales inside and outside similar CFDs

What this means for your home search

Mello‑Roos is not good or bad by itself. It funds real infrastructure and services that many buyers value. What matters is clarity. When you understand the exact annual amount, how it may change, and how it fits your loan, you can compare homes on a true apples‑to‑apples basis and negotiate with confidence.

If you want help pulling the right documents, running monthly comparisons, and planning a smart offer strategy in San Marcos, reach out to Graham and Kelly Levine. We will walk you through the numbers, coordinate with your lender, and make sure you have everything you need to move forward with confidence.

FAQs

What is Mello‑Roos in California real estate?

• It is a special tax levied by a local Community Facilities District under the Mello‑Roos Community Facilities Act, used to fund infrastructure and services, and it appears as a separate line on your property tax bill.

How do I find a San Marcos home’s Mello‑Roos amount?

• Check the current property tax bill for the APN or contact the San Diego County Treasurer‑Tax Collector; the amount is listed by district name or number as a special tax line.

How long do Mello‑Roos taxes last on a property?

• They continue until the district’s obligations are paid or the district ends the levy; the obligation stays with the parcel and transfers to the next owner at sale.

Will my lender escrow and count Mello‑Roos in my payment?

• Most lenders include Mello‑Roos in your monthly escrow and in debt‑to‑income calculations; confirm the treatment with your loan officer for your specific program.

Can I negotiate a home’s price or credits because of Mello‑Roos?

• Yes. Buyers often negotiate price reductions or credits to offset higher monthly costs; present full monthly comparisons during negotiations.

Are there exemptions from Mello‑Roos for seniors or others?

• Generally no. Exemptions that apply to base property taxes usually do not apply to Mello‑Roos; check the CFD’s RMA and county guidance for any district‑specific provisions.

How often can a Mello‑Roos amount increase?

• It depends on the CFD’s Rate and Method of Apportionment. Some are fixed dollars, others escalate by CPI or a set percentage; review the RMA for the rules that apply to the parcel.