“Supplemental property taxes” are a reality for California homeowners. Ask someone about these taxes and they likely will not know what they are, or how they affect a homeowner and their property.
Here are answers to common questions asked about the California Supplemental Property Taxes:
Q: When did this tax come into effect?
A: The Supplemental Real Property Tax Law was part of a drive to aid California’s schools and was signed by the Governor in July 1983. Advocates said this property tax revision would produce over $300 million per year in extra school revenue.
Q: How will Supplemental Property Taxes affect me?
A: If you plan on buying new property or undertaking new construction, this newer tax will impact you. You will be required to pay a supplemental property tax which becomes a lien against your property as of the date of ownership change, or the date of completion of new construction.
Q: When and how will I be billed?
A: You can be billed in as few as three weeks, or it could take over six months. The timing depends on the county the property is located in and the workloads of the County Assessor, the County Controller/Auditor and the County Tax Collector.
The Assessor will appraise your property and inform you of your new supplemental assessment amount. At this point, you’ll have an opportunity to discuss your valuation. If you’re unsatisfied with the assessment, you can apply for a Homeowner’s Exemption and file an Assessment Appeal.
The county will calculate the amount of the supplemental tax and the Tax Collector will mail you your final supplemental tax bill. This bill will state the total supplemental tax and the date which the taxes will become delinquent.
Q: Can I pay my Supplemental Tax bill in installments?
A: All supplemental taxes on the secured roll can be paid in two installments. Taxes are due on the date the bill is mailed and delinquent on a date depending on the month the bill is mailed.
If the bill is mailed within the months of July-October, the first installment will be delinquent on December 10 of the same year. The second installment will be delinquent on April 10 of the next year.
If the bill is mailed within the months of November-June, the first installment will be delinquent on the last day of the month following the month when the bill is mailed. The second installment will be delinquent the last day of the fourth calendar month following the date the first installment is delinquent. (A bit confusing, isn’t it?)
For additional questions, contact your local County Tax Collector for more information.