Buying a home in California comes with several important financial considerations, and one that often catches new homeowners off guard is supplemental property taxes. If you recently purchased a home or made significant improvements to your property, you may receive a supplemental tax bill. Understanding how this tax works, why it exists, and when you can expect to receive a bill can help you avoid surprises and plan accordingly.
What Is Supplemental Property Tax?
Unlike your regular property tax bill, which is based on the value of your home as assessed on January 1, supplemental taxes result from changes in property value that occur during the year. When you buy a home or complete significant renovations, the county reassesses your property. If the new assessed value is higher than the previous one, you will owe supplemental property taxes to cover the difference.
When Will You Receive a Supplemental Tax Bill?
After reassessing your home, the County Assessor will notify you of the new supplemental assessment amount. This notification provides an opportunity to discuss your valuation, apply for a Homeowner’s Exemption, or file an Assessment Appeal if you believe the assessment is inaccurate. Once the reassessment is finalized, the County calculates the supplemental tax amount and issues the supplemental tax bill.
What Information Does Your Supplemental Tax Bill Include?
- The total amount of supplemental tax owed
- The due date for payment
- The date your taxes will become delinquent if unpaid
How Is Supplemental Property Tax Calculated?
- The difference between the previously assessed value and the newly assessed value
- The tax rate (typically around 1% of the assessed value)
- The prorated number of months remaining until June 30, which is the end of the tax year
When Are Supplemental Property Taxes Due?
- If your bill is mailed between July and October:
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- The first installment becomes delinquent on December 10 of the same year.
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- The second installment becomes delinquent on April 10 of the following year.
- If your bill is mailed between November and June:
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- The first installment is due at the end of the month following the mailing date.
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- The second installment is due four months after the first installment becomes delinquent.
Because deadlines are tied to your bill’s mailing date, it’s essential to check your bill carefully and set reminders to avoid late payments.
In the end, supplemental property taxes can be an unexpected cost, but understanding how they work can help you stay ahead of the process. If you recently bought a home or made renovations, knowing when to expect a tax bill, how the tax is calculated, and when payments are due will keep you from being caught off guard. If you have any concerns about your supplemental assessment or tax bill, your real estate agent can guide you through the process and connect you with the right county offices for assistance.
Connect with the experts at Consumer’s Title Company for trusted guidance through all your real estate endeavors in California, and check out this resource about supplemental property taxes for more information.
Disclaimer: Please note that this content is for general informational purposes only and does not constitute legal advice.
