Mello Funds Can Replace General Tax Revenue
Breaking new legal ground, an appellate court has concluded that a Mello-Roos District may fund facilities and services that are funded by general tax revenue in areas outside the district but within the same jurisdiction. The court also ruled that a Mello-Roos tax funding general governmental services is not a general tax under Proposition 13 and Proposition 218 but, rather, a special tax.
