What is a Supplemental Tax?
January 30, 2012
In 1983, then Governor George Deukmejian singed the Supplemental Real Property Tax Law.
This was a follow up for real property taxes after Proposition 13 was passed. As usual, the state felt that they were missing income when real property was sold or when permits showed that the real property was being improved.
As you know, Proposition 13 fixed the real property tax assessment at the purchase price or at the value on February 28, 1975. It allowed for a 2% increase per year. As property was sold, the assessed value became the selling price. However, according to California law the assessed value changes as of date of change of ownership. Depending on when the change of ownership occurred, the change in the assessed value for the computation of real property taxes might not be done until the beginning of a new tax year.
The Supplemental Real Property Tax Law filled the gap by permitting the taxes to be computed immediately upon change of ownership with the new owner receiving a supplemental tax bill. This bill may often have a different due date that the traditional November 1 (December 10) or February 1 (April 10).
Often homeowners do not understand this bill. Sometimes they fail to pay it and like any real property taxes it can accumulate late penalties.
Any time a homeowner receives a bill from the tax collector, they should check it out. It may or may not be due and payable. It could also be for a former owner as the Assessor's office is often very late at getting these bills out.
It is good policy to always check out communications received from governmental entities. Often your professional real estate agent can answer questions or direct you to the appropriate source.
In 1983, then Governor George Deukmejian singed the Supplemental Real Property Tax Law.
This was a follow up for real property taxes after Proposition 13 was passed. As usual, the state felt that they were missing income when real property was sold or when permits showed that the real property was being improved.
As you know, Proposition 13 fixed the real property tax assessment at the purchase price or at the value on February 28, 1975. It allowed for a 2% increase per year. As property was sold, the assessed value became the selling price. However, according to California law the assessed value changes as of date of change of ownership. Depending on when the change of ownership occurred, the change in the assessed value for the computation of real property taxes might not be done until the beginning of a new tax year.
The Supplemental Real Property Tax Law filled the gap by permitting the taxes to be computed immediately upon change of ownership with the new owner receiving a supplemental tax bill. This bill may often have a different due date that the traditional November 1 (December 10) or February 1 (April 10).
Often homeowners do not understand this bill. Sometimes they fail to pay it and like any real property taxes it can accumulate late penalties.
Any time a homeowner receives a bill from the tax collector, they should check it out. It may or may not be due and payable. It could also be for a former owner as the Assessor's office is often very late at getting these bills out.
It is good policy to always check out communications received from governmental entities. Often your professional real estate agent can answer questions or direct you to the appropriate source.
posted by shirley harry at 9:10 AM
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