Supplemental Tax (applicable in select States)

The Supplemental Real Property Tax Law was signed in 1983 as an act to aid schools in California. If you are purchasing a home, or building a home, you will need to pay this tax. The supplemental tax is a one-time tax which dates from the date you take ownership of your property or complete the construction until the end of the tax year on June 30. The owner always pays this tax. This tax will become a lien on your property as of the date of the ownership change or the date of completion of constuction.

Your property will be appraised and a bill will be sent to you from your County Assessor, County Controller/Auditor and the County Tax Collector based on the property appraisal. You always have the option to discuss your valuation and apply for a homeowner's exemption or file for an assessment appeal.

The total assessment will be prorated based on the number of months remaining until the end of the tax year. If the effective date is July 1, then there is no supplemental assessment on the current tax roll and the entire supplemental assessment will be made to the tax roll being prepared which will then reflect the full cash value.

Article provided by Old Republic.