Understanding Property Taxes and Assessments

Palm Springs Real Estate Podcast with Will Cook

07/31/17 • -1 min

Property taxes are a significant expense for homeowners. Not to mention Mello-Roos and special assessment taxes.

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In addition to your monthly mortgage payment, you also need to consider some other taxes and assessments to get a true picture of what homeownership will look like for you. Each of these components will empower you to accurately predict and control your monthly expenses.

There are three components to these taxes: property taxes, direct assessments, and special assessments or Mello-Roos assessments. Every year, the city, county, and state all charge taxes on every parcel of real estate located within their borders. For many homeowners, these property taxes are the 2nd-largest home owning expense after mortgage interest.

In most areas, property taxes are governed by state law.

In most areas, property taxes are governed by state law, but assessed and collected by the county on an ad valorem basis. Ad valorem is latin for “according to value.” These taxes are calculated annually. In addition to these direct assessments, you may also be located in a special assessment district or a Mello-Roos district.

07/31/17 • -1 min

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