Page 21 - California Home Buyers Handbook

07 Supplemental Taxes

Guide to Supplemental Property Taxes—Some Basics

They have been with us since July of 1983, but you and your neighbors still may not
know what they are, what they do, and how they affect you and your property. To help
you better understand this confusing subject, the California Land Title Association has
answered some of the questions most commonly asked about supplemental real property
taxes.

When did this tax come into effect?
The Supplemental Real Property Tax Law was signed by the Governor in July of 1983
and is part of an ambitious drive to aid California’s schools. This property tax revision is
expected to produce over $300 million per year in revenue for schools.

How will Supplemental Property Taxes affect me?
If you don’t plan on buying new property or undertaking new construction, this new tax will
not affect you at all. But, if you do wish to do either of the two, you will be required to pay
a supplemental property tax which will become a lien against your property as of the date
of ownership change or the date of completion of new construction.

When and how will I be billed?
“When” is not easy to predict. You could be billed in as few as three weeks, or it could
take over six months. “When” will depend on the individual county and the workload of
the County Assessor, the County Controller/Auditor and the County Tax Collector. The
assessor will appraise your property and advise you of the new supplemental assessment
amount. At that time you will have the opportunity to discuss your valuation, apply for a
Homeowner’s Exemption and be informed of your right to file an Assessment Appeal. The
County will then calculate the amount of the supplemental tax and the tax collector will
mail you a supplemental tax bill. The supplemental tax bill will identify, among other things,
the following information: the amount of the supplemental tax and the date on which the
taxes will become delinquent.

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