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:
New value at date of purchase or new construction | $220,000 |
Assessed value for current fiscal year | -200,000 |
Supplemental assessment value | $20,0000 |
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.