Supplemental Property Tax Bills After Property Buying in California

 

The first year of owning a home in California can be confusing because of county government cycles for assessing property values and sending out tax bills.  

The tax assessor's office sends out property tax bills every year in September, and those are based on the property's assessed value on January 1st of that year.  

A SUPPLEMENTAL PROPERTY TAX BILL at Orange County CA is sent out separately, covering the difference between the previous owner's property value and your purchase price.

The tax bill is based on the county fiscal year from July 1 to June 30.  Depending on when you bought your property, or completed your new construction on a new home, you may get one or two supplemental tax bills.  

First Example  

If you bought your house on August 31 of 2008 for $500,000 and the house previously was valued at $200,000.  The tax bill that the assessors office sent in September of 2008 was based on the previous owner's $200,000 value as of January 2008, and was for the fiscal year that ends June 30, 2009.  The seller should have paid part of that tax (from July 1 to Aug. 31 2008) when escrow closed.

A supplemental bill, usually sent three to six months after the purchase (depending on when the assessor's office forwards the necessary data), will cover the additional $300,000 in value for the current fiscal year.

Second example

If, however, you bought the house between Jan. 1 and May 31, 2008, your tax bill would straddle two fiscal years.  Hence, if you bought on March 31, 2008, then you would receive one supplemental tax bill for the difference in value for the April 1, to June 30, 2008, period.  You would also receive a second bill for July 1, 2008 to June 30, 2009.

Home buyers in California should contact their local county assessor and tax collector office for more information. 

 

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 Source of some information is Orange County CA Assessor and Orange County Tax Assessor. 

 

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