When you own a property, it’s important to understand all of the taxes that come along with it. One of those taxes is supplemental property tax, also known as a “supplemental assessment.” This is a tax that can be imposed on property owners in addition to their regular property taxes, and it can be a significant expense.
Here’s what you need to know about supplemental property taxes:
1. Triggered by change in property value
Supplemental property taxes are usually imposed when the value of a property increases significantly. This can happen when you buy a home from a long-time owner.
When you buy the home, you immediately inherit the previous owner’s tax rate until the county has assessed your home at the new tax amount.
That difference in time, between the previous owner’s tax rate and when the county reassess, creates a supplemental tax.
It’s important to note, that supplemental taxes are not included in your escrow payment to your mortgage servicer.
So you have to pay the supplemental taxes out of pocket, even if the regular tax payment is paid monthly through the mortgage.
2. Based on increased value of the property
The amount of the supplemental property tax is based on the difference between the new assessed value of the property and the previous assessed value. The tax rate is then applied to this difference, resulting in the supplemental property tax.
3. They may be paid in installments
You can contact your county about paying installments rather than lump sum.
4. They can be appealed
If you believe that the assessed value of your property is incorrect, you can appeal the assessment. This can be done through a formal hearing process, and it’s important to present evidence to support your case.
5. They are different from reassessment
Reassessment is the process of updating property values based on the current market conditions. It is conducted by the county periodically, and it serves as the basis for the calculation of property taxes.
Supplemental property taxes can be a significant expense for property owners, and it’s important to understand how they work. By being informed and aware of the process, you can plan for and potentially appeal the tax. If you have any questions or concerns about supplemental property taxes, it’s best to consult with a tax professional or your local government agency.
Written with the help of ChatGPT.
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