As a Realtor in Walnut Creek and Concord, it’s important for me to help my clients navigate the real estate process with ease. One aspect of owning a property that often raises questions is the supplemental tax bill. In this post, we’ll go over everything you need to know about supplemental tax bills in these areas.
What is a Supplemental Tax Bill?
A supplemental tax bill is an additional property tax bill that is issued when there is a change in the ownership or value of a property. This can occur when a property is sold or when significant improvements are made to the property. The county assessor’s office will reassess the value of the property and issue a supplemental tax bill to reflect the new value.
Why Do You Need to Pay a Supplemental Tax Bill?
Supplemental tax bills are important because they ensure that property taxes are based on the current assessed value of a property. If a property changes ownership or undergoes improvements, the value of the property may change, and the property tax bill should reflect this change in value.
How Are Supplemental Tax Bills Calculated?
The supplemental tax bill is calculated based on the difference between the old assessed value and the new assessed value. The bill is prorated for the portion of the fiscal year that the property has been owned by the new owner. For example, if the previous owner paid property taxes for six months of the fiscal year, the new owner will only be responsible for the remaining six months.
Use this link to use Contra Costa County supplemental tax bill estimator: https://taxcolp.cccounty.us/taxestimate/main/
What Happens If You Don’t Pay a Supplemental Tax Bill?
If you don’t pay your supplemental tax bill, you may incur penalties and interest. Additionally, the county can place a lien on your property, which can impact your ability to sell or refinance the property.
As a Realtor in Walnut Creek and Concord, I recommend that my clients budget for supplemental tax bills when purchasing a new property or making significant improvements to an existing property. If you have questions about supplemental tax bills or any other aspect of the real estate process, please don’t hesitate to reach out. I’m here to help!