Page 40 - Homeowners Manual - Napa County

COMMON PROPERTY TAXES

City Transfer Tax
Tax paid to the local government as a percentage of the property’s value. The amount of the tax is usually
based on a percentage of the property’s selling price, but the exact amount is determined by the city where the
property is located.

County Transfer Tax
Tax paid to the county or local government as a percentage of the property’s value. The amount of the tax is
usually based on a percentage of the property’s selling price, but the exact amount is determined by the county
where the property is located.

Mello-Roos (California Only)
It is possible that the property you are buying is in a “Mello-Roos District” and that a special tax will apply.
Mello-Roos is the common name for the 1982 Community Facilities District Act. This Act authorizes local
governments and developers to create Community Facilities Districts (”CFDs”) for the purpose of selling
tax exempt bonds to fund public improvements (such as streets, water, sewage and drainage, electricity,
infrastructure, schools, parks and police protection). Property owners that participate in a CFD pay a special tax
to repay the bonds.

The Mello-Roos tax stays in effect until the bonds are paid off. Sometimes after the bonds are paid off, a CFD
will continue to charge a reduced fee to maintain the improvements. This tax is typically included in the annual
county property tax bill, and is subject to the same penalties that apply to regular property taxes. If the Mello-
Roos tax is not paid, the District may exercise its legal right to foreclose and sell the property.

Under Proposition 13, Mello-Roos taxes are not based on the value of the property. Instead, they are apportioned
by taking into account property characteristics (e.g., the use of the property, square footage of the structure, and
lot size). The District submits the tax charges to the County, who adds them to your annual Property Tax Bill.
Charges for this tax vary, but they do not exceed the maximum amount specified when the CFD was created.
When there is a new purchase of a house in a subdivision, the maximum of the tax will be specified in the public
report.

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