They have been with us since July of 1983, but you and
your neighbors still may not know what they are, what they
do, and how they affect you and your property. To help you
better understand this confusing subject, the California Land
Title Association has answered some of the questions most
commonly asked about supplemental real property taxes..
When did this tax come into effect?
The Supplemental Real Property Tax Law was signed by the Governor in
July of 1983 and is part of an ambitious drive to aid California's schools. This
property tax revision is expected to produce over $300 million per year in
revenue for schools.
How will Supplemental Property Taxes affect me?
If you don't plan on buying new property or undertaking new construction,
this new tax will not affect you at all. But, if you do wish to do either of the
two, you will be required to pay a supplemental property tax which will
become a lien against your property as of the date of ownership change or
the date of completion of new construction.
When and how will I be billed?
"When" is not easy to predict. You could be billed in as few as three weeks,
or it could take over six months. "When" will depend on the individual county
and the workload of the County Assessor, the County Controller/Auditor and
the County Tax Collector. The assessor will appraise your property and advise
you of the new supplemental assessment amount. At that time you will have
the opportunity to discuss your valuation, apply for a Homeowner's Exemption
and be informed of your right to file an Assessment Appeal. The County will
then calculate the amount of the supplemental tax and the tax collector will
mail you a supplemental tax bill. The supplemental tax bill will identify, among
other things, the following information: the amount of the supplemental tax
and the date on which the taxes will become delinquent.
Can I pay my Supplemental Tax Bill in installments?
All supplemental taxes on the secured roll 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:
(1) If the bill is mailed within the months of July through October, the first
installment shall become delinquent on December 10 of the same year. The
second installment shall 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 shall 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.
There is a formula used to determine your tax bill. The total supplemental
assessment will be prorated based on the number of months remaining until
the end of the tax year, June 30th.
Can you give me an idea of how the proration factor works?
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 on the current tax roll and the entire
supplemental assessment will be made to the tax roll being prepared which
will then reflect the full cash value. In the event the effective date is not on
July 1, then the table of factors represented below is used to compute the
supplemental assessment on the current tax roll.
If the effective date is: The Proration Factor is:
August 1 .92
September 1 .83
October 1 .75
November 1 .37
December 1 .58
January 1 .50
February 1 .42
March 1 .33
April 1 .25
May 1 .17
June 1 .08
No, unlike your ordinary annual taxes, the supplemental tax is a one time tax
which dates from the date you take ownership of your property or complete
the construction until the end of the tax year on June 30th. The obligation for
this tax is entirely that of the property owner.
This data is provided for information purposes only and should not be substitution for legal advice. Please consult a tax advisor or legal counsel.
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