Burt M. Polson | Napa Valley and Vallejo's Commercial Real Estate Broker

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Napa Valley & Vallejo, California

How are supplemental property taxes calculated?

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The Assessor appraises the property to determine the new base year value as of the date of the change of ownership or completion of new construction. The Assessor then calculates the difference between the new base year value and the existing roll value. The result is the new Supplemental Assessment. The Assessor will send you a "NOTICE OF SUPPLEMENTAL ASSESSMENT AND IMPENDING TAX BILL".

This reassessment usually results in an increase in property value, in which case your supplemental taxes will be calculated by the Auditor-Controller based on the change in value, and one or possibly two supplemental tax bills will be created and mailed to you by the Tax Collector. However, in some instances the reassessment results in a reduction in value, in which case a refund will be prepared by the Auditor-Controller and mailed to you. A reduction in value WILL NOT reduce the amount due on the annual tax bill. The annual tax bill must be paid in the amount originally billed.

Yes. The supplemental tax is sent in addition to the annual tax bill and both amounts must be paid as specified on each tax bill.

Will my mortgage company pay the supplemental bill?

No. Unlike the annual tax bill, lending agencies do not request a copy of the supplemental tax bill. When you receive a supplemental tax bill, YOU MUST CONTACT YOUR LENDER to determine who is to pay the bill.

What does the supplemental bill disclose?

The supplemental tax bill provides the following information:

  • The current owner.
  • The appropriate fiscal year.
  • The "situs" addresses of the property.
  • The assessor's parcel number.
  • The net difference of taxable value.
  • The amount of tax based on net value.
  • The type of exemptions, if any.
  • The due date(s) for tax payments.

The bill may be paid in two installments and provides payment stubs for each installment, which show the amount due and the date that the amount must be paid to avoid penalties for late payment.

Is my supplemental tax bill prorated?

Yes. You are taxed only on that portion of the year for which you have ownership or completed construction.

Is it possible to receive two supplemental bills?

Yes. This depends on when the ownership change or completion of new construction occurred.

You will receive ONE supplemental bill if the date of the change in ownership or completion of new construction is between June 1 and December 31 inclusive.

You will receive TWO supplemental bills if the date of the change in in ownership or completion of new construction is between January 1 and May 31 inclusive.

What happens if I fail to pay the supplemental tax bill?

The same rules apply as for unpaid annual tax bills. If your supplemental tax bill is not paid by June 30th after the second installment is delinquent, the property becomes tax-defaulted (even if you have paid your annual tax bill). After five years of delinquency the property will be subject to the Tax Collector's Power of Sale and may be sold at a tax sale.

-Burt

An ACRES Real Estate Services, Inc. Company