What to do if you receive a supplemental property tax bill

What are supplemental property taxes?

Supplemental property taxes are a type of property tax that California homeowners may be subject to when they purchase or improve their property, and these taxes are separate from a homeowner’s regular “secured” property taxes. Supplemental property taxes are calculated based on the difference between the property’s current assessed value on record with the county and its current actual market value.

If you recently purchased your home, the current assessed value on record with the county is likely what the previous owner was paying in property taxes. However, the county will eventually reassess your property to its current actual market value – often the price you paid to purchase your property. The reassessment can occur within a few weeks after you close on your home or it may be delayed for over a year, depending on how quickly the county processes it.

Supplemental property taxes can be a significant expense for homeowners, as they are due in addition to regular secured property taxes.

What are your options if you receive a supplemental property tax bill?

If your property taxes are impounded/escrowed, your loan servicer will automatically pay your semi-annual “secured” property tax installments for as long as you have your mortgage. However, your loan servicer will not typically pay your “supplemental” property tax bill(s) automatically.

If you received a supplemental property tax bill and want to know your options, please watch the above video in full!

Please note that not every loan servicer may provide the same options I outline in this video, so it’s important to contact your loan servicer directly to confirm your options.

What else is important to know?

Supplemental property tax bills typically only occur in the first year or so after a property is purchased or acquired, and they are not something you will have to pay every year you own your home. However, any changes in property ownership or permits pulled for renovations could trigger a reassessment of your property’s value, which may cause additional supplement property tax bill(s) to be generated.

Here is some additional information on how supplemental tax assessments are calculated.

If you still have questions regarding your supplemental property tax bill, please email us at TeamDan@solcostahomeloans.com, and we will be happy to help!