Tax Time Tips-Supplemental Tax Surprises Some Homeowners

SUPPLEMENTAL TAX - THINGS TO

However, if you buy a new property or begin new construction you will be required to pay a supplement tax bill which will become a lien against your property as of the date of ownership change, or at the of completion of new construction.

The Supplemental Real Property Tax Law was signed into law in July of 1983, and is part of the goal to aid California schools.  This property tax is expected to generate over $300 million annually in revenue to assist schools.

Each County will send out a Supplement Tax bill separately from the regular annual tax bill.  This amount will not be part of any escrow or impound account, and must be paid in addition to the normal property taxes.  This is a one time tax which dates from the time you take ownership or complete the construction.

A new homeowner could receive this bill in as short as a few weeks after close of escrow or completion of construction, or it could take as long as 6 months.

Basically, the amount due is determined by the County Assessor who will appraise your property and use a standard formula to determine your tax bill.  You will have the chance to discuss this evaluation, apply for a Homeowners Exemption and be told of your right to file an Assessment Appeal.

Your Supplemental Tax bill will include the amount of the supplemental tax due and the date by which the bill must be paid.  The total supplemental assessment will be prorated based on the number of months remaining until the end of the tax year, June 30th.

So, don't be surprised when a bill arrives after closing escrow-remember, only two things are guaranteed in life and one of them is TAXES!

Leonard Newman is the Broker/Owner of Newman Realty, located in downtown San Juan Capistrano, next to Cedar Creek Inn.  Contact him for any real estate needs, 949.233.9311.  NewmanRealty@live.com