Here’s what you need to know about supplemental property taxes.
I get a lot of questions about supplemental property taxes, so I’ll go over what they are. In California, property taxes are based on the purchase price of a home. When you purchase a new home, the property taxes are usually calculated at your new value. It takes several months for the counties to catch up and send out a supplemental tax bill. By then, many people have forgotten all the things that we talked about while in escrow, and the supplemental tax bill comes as a surprise.
“If you do a major upgrade to the home or something to reassess the home, you might receive a supplemental tax bill.”
Your property taxes are impounded if you have an impound account with your mortgage servicer. However, your supplemental tax bill is not paid by the mortgage servicer. That supplemental tax bill is separate and has to be paid separately.
Often, there is an overage sitting in the escrow account that you can get a refund from, at the end of your escrow period. You can reach out to your mortgage servicer and ask them to refund you the overage amount sooner if you’d like. Sometimes the bill needs to be paid before you can get that money out.
If you do a major upgrade to the home or something to reassess the home, you might receive a supplemental tax bill. When you buy a new home, set additional money aside for supplemental taxes. If you have questions about your situation, feel free to reach out to us at (562) 316-2915 or [email protected]. We look forward to hearing from you.
