What is a Supplemental Tax Bill and why do you get one
When you buy a property in Riverside County, it triggers a Supplemental Tax Bill and you are responsible as the new property owner to pay this bill. It is NOT the prior property owners responsibility.
Supplemental property taxes have been with us since July of 1983, but you still may not know what they are, what they do, and how they affect your and your property.
You will normally receive your new supplemental tax bill(s) within a few weeks or take over 6 months of purchasing the property. The supplemental tax bill(s) will be pro-rated from the date of purchase through July 1st of that year.
What is the reason for the Supplemental Tax Statement?
This onetime assessment is the result of a change of ownership or completion of new construction. The exact activity is indicated on the bill under “billing explanation”. The amount of the supplemental assessment is the difference between the new appraised value of your property and the prior appraised value.
How to pay the Supplemental Tax Statement?
This is in addition to your regular annual tax bill. The amount of the bill has been entered on the County’s tax roll and is payable by the due dates shown on the bill. If your property taxes are paid by a lender or taxpaying agent, contact them about paying this bill. No notice will be sent to them.
Why am I getting two supplemental tax bills
If you close escrow between July 1 and February 28th, you will receive one supplemental bill for the period from the date of close through the end of the tax year, June 30th.
If you close escrow between March 1st and May 31st, you will receive two supplemental bills and each bill will be mailed separately. One bill is for the period from the date of close through the end of the tax year, June 30th. The other bill is for the entire next tax year, from July 1st of the same year through June 30th of the next year.
If the close of escrow happens in June, you will receive one bill for the entire next tax year and from July 1st of the same year through June 30th of the next year.
The computation of the bill amount is shown on the bill, directly above “billing explanation”. The bill amount is the calculated by three possible factors:
- The Tax Amount Factor is the tax amount for a full tax year (the supplemental assessment amount times the tax rate)
- The Monthly Proration Factor is the number of full calendar months after the close of escrow through the end of the tax year represented as a fraction of a whole year
- The days owned factor (only applies to prorated bills between two owners) is the number of days you owned the property during the tax year represented as a fraction of the total number of days from the date of close to the end of the tax year, June 30th.
So, if you purchased a home, you WILL get a supplemental tax bill. If the purchase price is more than assessed value at the time of the sale, you will owe the amount shown on the bill. If the purchase price is less than the assessed value, you will get a a supplemental showing the credit and you will get a refund!