Supplemental Property Taxes
was the supplemental real property tax law enacted?
George Deukmejian signed the Supplemental Real Property Tax
into law in July of 1983. It is expected to produce over $300
million per year in revenue to aid Californias Schools.
do supplemental taxes affect the homeowner?
property taxes only affect individuals who are buying property
or initiating new construction. After the purchase or new
construction is complete, the new owner will receive a bill
for supplemental property taxes, which will become a lien
against the property as of the date of
ownership changes or upon the date of completion of new construction.
and how are the bills generated?
It is not easy to predict when the new property owner will
be billed. It may be as soon as three weeks after escrow closes
or the new construction is complete. It also might take six
months or more, depending on what county the property is located
in and the work loads of the County Assessor, County Controller/Auditor
and the County Tax Collector. The Assessor will appraise the
property and advise the
owner of the supplemental assessment amount. The property
owner will then have the opportunity to discuss the valuation,
apply for a Homeowners Exemption and be informed of
their right to file an Assessment Appeal. The Assessor then
calculates the amount of the supplemental tax bill to the
property owner. The bill will identify the amount of the supplemental
tax and the date the taxes
will become due and delinquent.
will the amount of the bill be determined?
A formula is used to determine the tax bill. The total supplemental
assessment will be prorated based on the number of months
remaining until June 30, the end of the tax year. The proration
factor works like this: The supplemental tax becomes effective
on the first day of the month following the month in which
the change of ownership or completion of new construction
actually occurred. If the effective date is July 1, then there
will be no supplemental assessment of the current tax roll
and the entire supplemental
assessment will be made to the tax roll being prepared. If
the effective date is not on July 1, the factors represent
assessment on the current tax roll.
The County Auditor finds that the supplemental property taxes
would be $1,000 for a full year. The change of ownership took
place on September 15 with the effective date being October
1. The supplemental property taxes would be subject to a proration
factor of .75 and the supplemental tax would be $750. Can
the supplemental tax bill be paid in installments? All supplemental
taxes are payable in two equal installments. The taxes are
due on the date the bill is mailed and are delinquent on specified
dates depending on the month the bill is mailed as follows:
the bill is mailed within the months of July through October,
the first installment will become delinquent on December 10
of the same year. The second installment
will become delinquent on April 10 of the next year:
2. If the bill is mailed within the months of November through
June, the first installment will become delinquent on the
last day of the month following the month in which the bill
is mailed. The second installment shall become delinquent
on the last day of the fourth calendar month following the
date the first installment is delinquent.
supplemental property taxes be prorated in escrow?
Unlike ordinary annual taxes, the supplemental tax is a one-time
tax due for the period from the date of new ownership or completion
of the new construction, until the end of the tax year on
June 30. The obligation for this tax is entirely that of the
Supplemental Property Taxes
Bay Brokers, Inc.
1640 So. Pacific Coast Hwy.
Redondo Beach, CA 90277
(310) 375-9616 Fax
2501 No. Sepulveda Blvd.
Manhattan Beach, CA 90266
(310) 545-0515 Fax