I thought I only had to pay Property Taxes when I purchased a new home, what is this “Supplemental Tax Bill” I just got in the mail?
Any time there is a change in home ownership or purchase of new construction, the property has its taxes reassessed. You have your annual property tax bill that is ongoing and due in two-installments. A Supplemental Tax Bill is a one-time bill that is the difference between the previously assessed value in taxes and the newly assessed. A one-time tax that is from the date that you take ownership.
The Supplemental Tax Bill does not get sent to your lender in the event you have your taxes impounded.
This is an additional cost to the homeowner that is their sole responsibility to take care of. The bill may show up in a matter of weeks or months, depending on how backed up the county is. Educate yourself on what the property tax basis is as well as the previously assessed value so that you aren’t surprised when a big bill shows up in the mail. The Supplemental Tax Bill is due immediately with an imposed 10% penalty if delinquent with monthly penalties charged thereafter until paid. If the homeowner fails to pay the bill, the county has the right to file a tax default against the property which, after several years, gives them the right to foreclose.
In a hot competitive market, it is common to get hit with a Supplemental Tax Bill.
Question is, is there ever a time that you may get a Supplemental Refund? Answer is yes. If the new assessment is lower than what the previous owner had the property assessed for or if exercising senior citizens transfer of proposition 13, then you can expect a refund check in the mail. Unless you owe back property taxes on the parcel, in which case it’ll get applied to any outstanding balance with the difference being sent to you in the mail.
Educating yourself to all of the costs associated with purchasing a new home will help alleviate any financial surprises so that you don’t wake up one day with Buyer’s Remorse. Do your homework, you’ll thank yourself later.