Qualified Home Loans

What California Homeowners Should Know About Supplemental Tax Bills

If you just closed on your new home, you’ve probably got a lot of things on your mind, like home maintenance, homeowners insurance and property taxes. You may have an escrow account (also known as an impound account) with your lender that splits up your taxes and homeowners insurance into monthly payments rather than a lump sum. But, you get a supplemental tax bill in the mail. Now what? 

A supplemental tax bill are additional charges not covered by your annual tax bill. Supplemental tax bills are mailed directly to the homeowner and are generally not paid out of the escrow account. Here’s more on specifically California homeowners and supplemental tax bills… 

California Supplemental Tax Bills 

Under current California law, after there is a change of ownership to a home, the property is reassessed. The supplemental bill covers the difference between the previously assessed value taxes and the newly assessed value when you purchased the home. Think of it as a catch-up bill that you may see within a few months of buying your home. 

You may also receive a supplemental tax bill for changes that add property value, like adding square footage or special features like a swimming pool or fireplace. 

It’s important to note that this bill doesn’t get sent to your mortgage servicer, as they only receive your annual property tax bill. This is a bill that is separate from what gets paid out of your regular escrow account (if you have one). And, like any other bill, supplemental tax bills should be paid by the due date, or you could be charged a delinquency penalty. 

Questions About Supplemental Taxes? 

You can contact your local taxing authority with any questions you have about your regular tax bill as well as any special assessment.