Lynda:

Great info!  Congrats on being picked up as featured post on Localism.

Hey Jessica,

Thanks for letting me know about the Localism pick up, I hadn't noticed it yet.

I hope the info I wrote is helpful to some, but it certainly isn't as entertaining and creative as your stuff!  Terrific blog!

Lynda

This looks like something the buyers may want to calculate anyways. Good information. Thanks for the post.

Thanks Craig.  I definitely think Buyers (and their agents) would want to do this, but this law puts the obligation on the seller to calculate it for the Buyer.

Well lookie who's here?!?!?!!?!?      ;-)

Hello my friend!  Glad to see you posting here, and this is certainly controversial.  The concept is interesting, but who can predict the future?  If the tax office isn't willing to make these predictions, that should be a clue to the city leaders that this isn't a good thing to do.

Ann

Hello my friend!

My first blog post...I'm so excited.  Thank you for your comments.   I do wonder if this was primarily aimed at builders who are awful about their tax estimates and that is why they have made this a seller issue?  Also, it's lenders who qualify and do GFE's based on current taxes, and this bill does nothing to address that. 

Hopefully, one day all the regulations and legislation will accurately and thoroughly address these problems. 

Lovely seeing you here!

LL - congrats on your first post!!  Here's to reading many more!!

Ann

Hi Lynda -

In California, we have a disclosure to buyers about the sale generating a "Supplemental Tax Bill" as well as disclosures regarding special taxes and bonds, transfer taxes,  etc.  The nice thing in CA is that we have the protection of our 1978 "Proposition 13" that states the property taxes will be based on 1.0% of the purchase price of the property, and they may not increase more than 2% per year.  Of course, the "special taxes and bonds" are added after that calculation, so that the effective tax rate is often close to 2% of the property value.  The "Supplemental" tax bill is actually the pro-rated portion of the new taxes from close of escrow date to the beginning of the new tax year. 

Hi Vicki,

Thank you for your comments.  We have caps on our property taxes also and that is part of the problem here.  If an owner has been in a property for a long time then the bill increases dramatically when it is reassessed the year after sale.  However, we provide copies of the current tax bills which clearly show the credit for the cap along with the various "special" tax zones, assessments, etc. 

Does your disclosure have the figure the actual dollar amount of the Supplemental Tax Bill the buyers will receive?

Lynda asked: Does your disclosure have the figure the actual dollar amount of the Supplemental Tax Bill the buyers will receive?

No - our disclosure just says there may be a supplemental bill.  (In the case of a falling market, it could actually go down.)  I know how to do the calculation and get within about $2, but usually give them an estimate that is padded by about $100, then I refer my clients to the tax assessor's website if they want the most accurate estimate.