Jackie Krentzman is a Bay Area-based writer and editor.

Several years ago, long-time real estate agent David Fenn was standing in line at a Beaumont supermarket when he overheard a fellow shopper bemoaning their escrow.

“The customer was looking disappointed and said, ‘Oh man, it went badly. We fell out of escrow. No one told me about the special assessment taxes on top of the property taxes,’” said Fenn, now a council member for the Inland Empire city.

The shopper had fallen victim to a common experience in Beaumont: Sellers do not need to disclose Community Facilities District taxes, also known as Mello-Roos, until escrow. These taxes can add $1,000 or more annually to a property tax bill. And Beaumont has dozens of these districts, all of which play a crucial role in supporting new housing developments.

Fenn had an idea. The city could create a property tax finder so prospective buyers and current homeowners can see a detailed breakdown of their property tax bill.

“As a real estate agent, I saw a problem in my industry and I wanted to try to solve it,” said Fenn.

Last year, Beaumont partnered with the Spicer Consulting Group to launch the Property Special Tax Assessment Finder, a mobile and web-based application that provides real-time property tax information. Users can plug in a property address or parcel identification number to access the base property and bond assessments, along with streamlined information on the current year’s tax amount for each city-administered district and their maturity year.

The finder has proven especially popular with seniors, said Shane Spicer, who developed the tool. “Many are living on a fixed income and had concerns about hidden costs,” he said.

The finder contains a plethora of other information, such as individual parcel maps, detailed background and explanations of Mello-Roos taxes, and links to the property’s tax history on the Riverside County tax assessor site.

“The tax finder provides a level of transparency and clarity we didn’t have before,” said Fenn. “If a buyer is looking at a home in one neighborhood and a home in another, and those tax rates are different, they have all the information they need to make a decision.”

Many California cities rely on Community Facilities Districts to fund the infrastructure, public safety, and public maintenance needed to support new homes, as 1978’s Proposition 13 caps property taxes. But the need for them has been especially acute in Beaumont. Its population boomed from roughly 13,000 in 2003 to 58,000 today, and the city’s square mileage skyrocketed from nine to 30 as the city annexed surrounding land for subdivisions.  

Beaumont needed to add tens of millions of dollars for new infrastructure to its budget. The city had two options: The developer could finance these improvements and work the cost into the sales price of the homes. Or the developer could partner with the city to finance the upgrades and then issue a Mello-Roos tax bond to property owners.

The city chose to finance the improvements to keep home prices relatively marketable, said City Manager Elizabeth Gibbs, who noted cost transparency is critical. In recent years, Beaumont has attracted homebuyers seeking more affordable options compared to nearby cities.

Even an extra $200 a month could be very challenging. A $400,000 home sold in the South Sundance neighborhood would have approximately $1,300 in annual additional taxes, on top of the base property tax of $5,200.

“Many people considering a move to Beaumont are drawn to the area’s relative affordability,” Gibbs said. “People choose Beaumont for its quality of life, good schools, lower crime rates, and abundant outdoor recreation.”

The assessed tax varies by neighborhood. Beaumont has 85 different Community Facilities Districts that correspond to when a housing development was built. Newer neighborhoods, generally built further from the city center, needed more infrastructure investment, such as longer sewer and water lines. The additional taxes on a $400,000 home in the South Sundance neighborhood could be $900, but as much as $3,000 in the Fairway Canyon neighborhood.

The tax maturity date provided in the tool helps provide a clearer understanding of when someone’s tax obligation will end and how it affects their tax bill in the long run. By giving would-be buyers the full picture up front, the finder tool minimizes unwelcome escrow surprises while increasing transparency.

“If the agents can better understand our property taxes, then they can point out all the benefits to their buyers,” said Fenn. “For example, they can fine-tune certain neighborhoods by saying, ‘Hey, look! The annual property taxes are lower in this neighborhood is lower than that one.’”

Beaumont’s property tax finder has proved so successful that Spicer created ones for Lake Elsinore and Menifee and is currently working with the city of San Bernadino on another.

“Cities and their constituents have been very receptive,” said Spicer. “A tax finder application like this can be an excellent tool for every city in California looking for ways to enhance transparency and strengthen the relationship between agency and residents.”