Teresa Tims TheSoCalLoanPro.com discusses this topic in an easy to understand fashion, just click on the video below. This topic is one of the biggest sources of confusion and frustration for many new homeowners especially during the first year of homeownership.
What Does Supplemental Taxes Mean
Supplemental taxes is super super simple when you break it down. It’s the difference from what the old owner paid in taxes to what you’re paying in taxes during that period before the house gets reassessed into your name. So I made a little chart to kind of try to make it a little bit easier. You know depending on when you buy your house will depend on how much supplemental taxes you may have to pay, if any. I think that for the most part, people owe supplemental taxes, and I’ve seen anywhere from like $200 to like $3,000.
Then 6 months later the house is reassessed into your name and it’s 4500.00 per year. That’s a 1500.00 Difference and that difference is your “supplemental tax bill”, which in CA is due in 2 installments, 1 in November otherwise know at the First Half Taxes. BECAUSE the tax bills come out at the end of Summer and is broken up in 2 parts. The November payment is the 1st one therefore its the 1st Half, get it?
The 2nd installment is due in March and is called the 2nd Half.
Now the tax assessor is kind of cool about that. They break it up into 2 payments. So taxes are due in California in November and then, again, in March. What you may want to do, your lender most often is collecting the taxes at this $300,000 mark. If you just paid normal taxes at one and a quarter percent. So I always tell my past clients when they call me, “Hey, call your current service and see if they don’t have extra money in your impound account to pay these.” But be careful about that because what happens is at the end of the year when they reconcile your tax insurance account. If your short because they pay the supplemental, then your payment will go up.