If you’ve bought a home in California, you are probably familiar with what a supplemental tax is. But if you are a recent home buyer, you might not know why this bill occurs.
Since 1983, supplemental property taxes have helped with the funding of California’s public school system. This tax is levied to anyone who purchases or builds a new home.
After there is a change of ownership to a home, the property is reassessed. This is a tax that starts from the moment you officially take ownership of the property, or finish construction.
A supplemental tax bill is one you get for additional charges not covered by your annual tax bill, and unlike your annual property taxes is a one-time bill.
A homeowner may see the supplemental bill within a few months of purchase.
A homeowner may also receive a supplemental bill for changes that add property value such as more square footage or a swimming pool.
An important thing to mention is that this bill will be sent directly to the homeowner, and not their escrow.
Because this bill is separate from what gets paid out of a regular escrow account, it will be the responsibility of the homeowner. A general rule of thumb is to set funds aside in preparation of this tax.
And just like any other bill, your supplemental tax bill should be paid by its due date, or you could be charged a delinquency penalty.
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