At Witham Real Estate we get a lot of questions about supplemental taxes. What are they? How much will they be? When will I get the bill? Are often the questions we repeatedly hear. I have found an article by North American Title company that offers some answers to the most common questions about Supplemental Taxes.
When did this tax come into effect? The Supplemental Real Property Tax Law was by the governor in July of 1983 and is part of an ambitious drive to aid California’s schools. The property tax revision was expected to produce over $300 million per year in revenue for schools.
How will the amount of my bill be determined? 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 next tax year, which is June 30th.
Will my taxes be prorated in escrow? No. Unlike ordinary annual property taxes, the supplemental tax is a tax which dates from the date you take ownership of your property or complete new construction until the end of the tax year on June 30th. The obligation for this tax is entirely that of the property owner.
When will I receive my bill? You could receive your bill in as little as three weeks or as long as six months. It varies by county and by the work load of that given county assessor’s office.
Its important to note that supplemental taxes are not handled in escrow nor typically paid out through your lenders impound account. If you receive a supplemental tax bill in the mail DO NOT ignore it! One thing you can do is contact your lender to see if you have any excess funds in your impound account to pay the bill. But otherwise this bill will need to paid direct by you, the new property owner. And depending on when you close on your new home you may get one or two bills, usually payable in two installments. If you have any additional questions please feel free to reach out to us here at Witham Real Estate and if we can answer the question we can get you in touch with our title company for further assistance.