Many home buyers are surprised when they receive a supplemental tax bill shortly after the close of their real estate transaction. This onetime bill allows the county tax assessor to re-calibrate the tax roles based on the newly assessed value of a recently purchased property. 

Supplemental property tax defined

The supplemental property tax is a one-time tax, which dates from the time you take ownership of your property or complete construction, and is calculated until the end of the tax year (June 30th).

How is the supplemental tax bill determined?

The supplemental property tax is based on the difference in the assessed value of a home when it was purchased by the prior owner and the newly assessed value when purchased by the new owner.

The total supplemental assessment will be prorated, based on the total number of months remaining until the end of the tax year.

Will my supplemental taxes be prorated in escrow?

Rarely! Because supplemental tax is a one-time tax and is in effect from the actual date ownership changed hands. Supplemental taxes are collected by the county tax collector/county controller.

When are the supplemental bills due?

Supplemental tax bills are calculated between 3 weeks and 6 months after the close of escrow. The realtors, lenders and escrow officers have no control over the supplemental tax bill.

Can supplemental taxes be paid in installments?

All supplemental taxes are payable in two equal installments. The taxes are due on the date the bill is mailed. 

Last updated on January 24, 2012 by Blake Roberts