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Supplemental Tax Bill Information

Q.  How were changes in property value due to sale of property or new construction taxed in the past?
A.  Before July 1983, the Assessor reassessed property just once each year on March 1 (the lien date) for taxes due the following fiscal year (July 1 - June 30). Any change in property value resulting from a change in ownership or the completion of new construction that took place after March 1 was not reevaluated and taxed until the following year. Effective January 1, 1997, state law changed the lien date to January 1.


Q.  What do you mean by new construction or change of ownership?
A.  Typically, new construction is any substantial addition to real property (e.g., adding a new room, pool, or garage) or any substantial alteration which restores a building, room, or other improvement to the equivalent of new (e.g. completely renovating an outdated kitchen). Most changes in ownership caused by the sale of property result in reassessment. However, interspousal transfer, the transfer, sale, or inheritance of property between parents and their children, and the addition of joint tenants do not result in the reappraisal of property values.

Furthermore, 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 are eligible to transfer the pre-sale assessed value of their original property to the replacement dwelling (Propositions 60 and 90). To be eligible, the property sold must be within the State of California and the property purchased must be within Riverside County.

For further information or claim forms, please contact the Office of the Assessor at (951) 955-6200, or 1 (800) 746-1544 within the 951 and 760 area codes.


Q.  What happens when the Assessor reassesses my property?
A.  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 (set on January 1 of the previous fiscal year). The result is the supplemental assessment value. Once the new assessed value of your property has been determined, the Assessor will send you a notification of the amount.

EXAMPLE:
        New value at date of purchase or
        completion of new construction                     $120,000
        Assessed value for current fiscal year        -   100,000
Supplemental assessment value will be              $ 20,000

If this reassessment results in an increase in property value, your supplemental taxes will be calculated by the Auditor-Controller based on the change in value, and one supplemental tax bill will be created and mailed to you by the Tax Collector. However, if the reassessment results in reduction in value, a refund will be prepared by the Auditor-Controller and mailed to you. 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.


Q.  Do I have the same right to appeal the Assessor's supplemental assessed value as I do the annual assessed value?
A.  Yes. You may take the matter up with the Assessor to see if that office will change the valuation. Additionally, the Board of Supervisors has established an Assessment Appeals Board for the purpose of resolving valuation problems in connection with supplemental tax bills. Applications for appeal must be filed within sixty days of the mailing date shown on the Assessor's "Notice of Supplemental Assessment". If you choose to appeal your assessment, you should still pay your tax installment(s) in full by the appropriate deadlines; otherwise, you may incur penalties while the case is in appeals. If your appeal is granted a refund will be issued to you.

Further information about the appeals process can be obtained by contacting the Clerk of the Assessment Appeals Board, 4080 Lemon Street, 1st Floor, Riverside or P.O. Box 1628, Riverside, CA 92502-1628 by mail.


Q.  If I receive a supplemental tax bill, will I also receive an annual tax bill in November of each year?
A.  Yes. The supplemental tax bill is sent in addition to the annual tax bill and both must be paid as specified on the bill. For information on the annual tax bill, see our information on understanding property taxes.


Q.  If I pay my property taxes through an impound account (i.e., with my mortgage payment), will my lender get my supplemental tax bill?
A.  No. Unlike the annual tax bill, lending agencies do not receive a copy of the supplemental tax bill. When you receive a supplemental tax bill, you must contact your lender to determine who will pay the bill.


Q.  What does the supplemental tax bill tell me?
A.  The supplemental tax bill provides the following information:

• The owner (or new owner as of the date of ownership change).
• The fiscal year for which the taxes are assessed.
• The location and legal description of the property.
• The old and the new assessed value and the difference (net supplemental assessment) upon which the tax is computed.
• The type and amount of any exemptions (e.g., homeowner's).
• The total amount of taxes due based upon the net increase in value.


Q.  What if I purchase a piece of property and then sell it again after a few months?
A.  If you purchase and then sell property within a short period of time, the supplemental tax bill you receive should cover only the time you owned the property, and the new owner should receive a separate supplemental tax bill. Because of the large number of parcels and frequency of property changing hands in Riverside County, there are often delays in placing new assessments on the roll. Be sure to check the dates used to prorate the bill to ensure that the period covered is the period during which you actually owned the property. If you receive an incorrect tax bill, contact the Assessor's office at (951) 955-6200, or 1(800) 746-1544 within the 951 or 760 area codes.


Q.  When I purchase property or complete construction at some point during the fiscal year, will I be taxed on the supplemental value for the entire fiscal year?
A.  No. You are only taxed on the supplemental value for the portion of the current fiscal year remaining after you purchased the property or completed new construction. However, if you purchased the property or completed new construction between January 1 and June 30, your supplemental bill will include the increase in taxes for both the remainder of the current fiscal year and for the entire upcoming fiscal year.


Q.  When do supplemental tax bills have to be paid?
A.  The date on which supplemental tax bills become delinquent varies depending upon when they are mailed by the Tax Collector. As outlined in Figure 2 below, if the bill is mailed between July 1 and October 31, the taxes become delinquent at 5 p.m. on December 10 for the first installment and 5 p.m. on April 10 for the second installment (the same delinquency schedule as for annual tax bills mailed in November).

Figure 2.

***Bill mailed between*** 1st installment 
delinquent
2nd installment
delinquent
July 1 and October 31 December 10 April 10


If the bill is mailed between November 1 and June 30, the delinquency dates-which are printed on the bill are determined as follows: The first installment is delinquent at 5 p.m. on the last day of the month following the month the bill was mailed; the second installment is delinquent at 5 p.m. on the last day of the fourth month after the first installment delinquency date (see Figure 3).

Figure 3.

***Bill mailed between*** 1st installment delinquent 2nd installment
delinquent
November 1 and June 30 Last day of the month following the month bill was mailed Last day of the 4th month after the 1st installment became delinquent


Penalties of 10% are added to any installment which is not paid on time, and an additional charge is added to a late second installment.


Q.  If payment of the supplemental tax bill is not made before the delinquency date because of a misunderstanding between my lender and myself, may I have the penalties excused?
A.  No. State law stipulates that this is not an acceptable reason for excusing penalties.


Q.  What happens if I fail to pay my supplemental tax bill?
A.  The same rules apply as for unpaid tax bills. If your supplemental tax bill is not paid by the June 30 after the second installment becomes delinquent, the property becomes tax defaulted (even if you have paid your annual tax bill). At the end of the fifth year of delinquency the property becomes subject to the power of sale as described in our information on  Delinquent Property Taxes.


Q.  Can delinquent supplemental taxes be paid on an installment plan?
A.  Yes. Delinquent supplemental taxes can be paid on an installment plan in the same manner as your annual property taxes.


Q.  Am I entitled to homeowner's exemption on my supplemental tax bill?
A.  You may very well be eligible for a homeowner's exemption on your supplemental tax bill. Exemptions, however, are not granted automatically. You must apply to the Assessor before the 30th day following the date of the notice from the Assessor of your supplemental assessment. As long as the home you purchased did not receive the homeowner's exemption on the current year's assessment, and as long as you occupy the home as your principal residence within 90 days of the purchase date, you would be allowed the full amount ($7,000) on the supplemental assessment. If your newly purchased home did receive the full homeowner's exemption, however, you would not be able to receive the exemption on your supplemental assessment.


Q.  Are other exemptions and assistance programs available that will help defray the amount of supplemental taxes due?
A.  Yes. Supplemental taxes are eligible for the same property tax exemptions and assistance programs as your annual taxes. In addition to the homeowner's exemption, you can apply through the Assessor's Office for a number of other assessment exemptions (e.g., veteran's, church, and welfare) that result in savings. You must, however, file for all exemptions before the 30th day following the date of the notice from the Assessor of your supplemental assessment. For further information, contact the Assessor's Office, Exemption Services at (951) 955-6200, or 1 (800)746-1544 within the 951 and 760 area codes.