Supplemental Taxes

State law requires the immediate reassessment of property(for tax purposes) whenever a change of ownership or completion of construction occurs. If applicable, you will receive a supplemental tax bill reflecting the change in value for the balance of the tax year. Due dates for a supplemental tax bill depends on when the bill is mailed.  A decrease in value will result in a negative supplemental tax bill being issued. These negative bills or refunds do not cause a change to your current annual tax bill which must be paid timely to avoid penalty.

On July 1, 1983, California State law was changed to require the reassessment of property following a change of ownership or the completion of new construction. This reassessment may result in one or more supplemental tax bills being mailed to the assessed owner, in addition to the annual property tax bill. This pamphlet focuses on the supplemental tax bills generated by such reassessments of property values.

What is meant by New Construction or Change in Ownership?

Answer: New construction could include any addition to real property (such as a new building, or adding a new room, pool or garage), or any substantial alteration to an existing structure.

Most changes in ownership caused by the sale of property result in reassessment. However, inter-spousal transfers, the transfer, sale or inheritance of property between parents and their children, and the addition of joint tenants may not result in the reappraisal of property values. Parent/child transfers require an exclusion filing within a limited period.

Homeowners over the age of 55 years who sell their principal residence and purchase a replacement dwelling within two years that is of equal or lesser market value, and is located within the same county, MAY be eligible to transfer the pre-sale assessed value of their original property to the replacement dwelling.

For claim forms or further information regarding assessment issues, please contact the Assessor at (530) 225-3600.

What happens when the Assessor reassesses my property?

Answer: The Assessor first determines the new value of the property, based on current market values. The Assessor then calculates the difference between the new value (set at the time of purchase or completion of new construction) and the old value. This results in the supplemental assessment value. Once the new assessed value of your property has been determined, the Assessor will send you a Notice of Supplemental Assessment.

For example:

This reassessment usually results in an increase in property value. Your supplemental taxes will be calculated based on the difference in values. As a result, one or more supplemental tax bills will be issued. If the reassessment results in a reduction in value, a refund will be issued by the Auditor-Controller's Office. A reduction in value will not reduce the amount due on the annual tax bill. The annual tax bill must be paid in the amount originally billed.

Do I have the same right to appeal the Assessor's supplemental assessed value as I do the annual assessed value?

Answer: You should first discuss the matter with the Assessor's Office. If the matter is not resolved to your satisfaction, there is an Assessment Appeals Board established for this purpose. Appeals must be filed within sixty (60) days of the mailing date shown on the Notice of Supplemental Assessment from the Assessor.

If you are appealing your assessment, your tax installments should still be paid before they become delinquent. If unpaid, penalties may accrue during the appeal process. If the outcome of your appeal results in a refund, it will be issued by the Auditor-Controller's Office.

Further information regarding the appeals process can be obtained by calling (530) 225-3600, or writing to: County Assessor, 1450 Court Street, Room 208, Redding, California 96001.

If I receive a supplemental tax bill, will I also receive an annual tax bill in November?

Answer: The supplemental tax bill is in addition to the annual tax bill. Both bills must be paid by their individual delinquent dates.

If I pay my property taxes through an impound account, will my supplemental tax bill be sent to my lender?

Answer: No. Supplemental tax bills are mailed directly to you. It is your responsibility to contact your lender to determine who will pay the supplemental tax bill.

If payment of the supplemental tax bill is not made on time because of a misunderstanding between my lender and myself, may i have the penalties excused?

Answer: No. The California Revenue and Taxation Code does not authorize the County Tax Collector to remove penalties in this situation.

What if I purchase property and then sell it again after a few months?

Answer: If you purchase and sell property within a short period of time, the supplemental tax bill you receive should cover only those months during which you owned the property, and the new owner should receive a separate supplemental tax bill. You may not receive the supplemental tax bill until after you have sold the property. The type of supplemental tax bill you would receive in this instance would be unsecured at billing, and would have only one installment stub for payment. Check the dates used in prorating your bill, to ensure that the period covered is correct. If you believe your tax bill is incorrect, contact the Assessor's Office at (530) 225-3600.

When I purchase property or complete construction during the fiscal year, will I be taxed on the supplemental value for the entire fiscal year?

Answer: You are taxed on the supplemental value for the remaining portion of the year, from the date you purchased the property or completed the new construction. However, if the event was after January 1st, you will receive an additional supplemental tax bill for the following fiscal year, which will be for the entire year.

If you buy new property or complete new construction between June 1 and December 31*, then you will be responsible for the following tax bills:

• Your portion of the Annual Tax bill ** for the current fiscal year, reflecting the prior assessed value.
• The Supplemental Tax bill for the remainder of current fiscal year, reflecting the difference between the new and prior assessed values.
• The Annual Tax bill** for the upcoming fiscal year, reflecting the new assessed value.

If you buy new property or complete new construction between January 1 and May 31*, then you will be responsible for the following tax bills:

Your portion of the Annual Tax bill** for the current fiscal year, reflecting prior assessed value.

The first Supplemental Tax bill for the remainder of current fiscal year, reflecting the difference between new and prior assessed values.

The Annual Tax bill** for the upcoming fiscal year reflecting the value of the January 1 annual assessment.

The second Supplemental Tax bill for the entire upcoming fiscal year, reflecting the difference between the new and prior assessed values.