Making Sense of the Supplemental

Real Estate Agent with Mountain Top Producers BRE# 01888377

You've closed escrow on your new property, you've moved in, unpacked and are just getting settled into your new routine when it comes....


Suddenly, the assessed value of your property has jumped, and your property taxes are soon to follow.  We are here to ease the stress of this little piece of paper by explaining exactly what it means, and what you can do about it.

The Assessor's office in each respective California county release values for each parcel within their county.  These values are released on or about July 1 of each year.  These values are reflective of the value as of the preceding January 1.  That's right, the value that is enrolled on July 1 is 6 months after the lein date!  When a property changes ownership, the Assessor's Office is notified from the Recorder's Office.  At this time, the Assessor establishes a value of the property as of the transfer date.  This is the Supplemental Assessment.  It creates a tax bill that is prorated for the remainder of the fiscal year.  The value given in the supplemental notice is also known as the Base Year Value.  In the great state of California, we have voted to allow our government to raise our property values by a maximum of 2% per year.  This is known as Proposition 13.  Your Base Year Value is the starting point for Prop 13 max increases.

Now to the part about what you can do about it.

Note the date of the notice.  You have 60 days from the date of the notice to file an appeal.  Please make sure to pay any tax bills that you get in the mean time!  Appeal forms can be found on your County's website.  IMPORTANT - file in the county that the parcel is located in, if you reside in a different county.  The application is filed with the Board of Appeals and you will receive an application number.  This can take some time, be patient.

You may be contacted for more information or to discuss your property's value and your purchase.  Some may also not hear much of anything.  Oftentimes, you may be able to talk over the phone and come to an agreement.  You also may have to defend your case to lower your property's value.  It is particularly important to challenge your Base Year Value if you feel that you overpaid for your property.  Oftentimes, the supplemental value is set at or darn near your purchase price.

The downside is that the county Board of Appeals does, by law, have up to two years to hear your case.  Not all of us are held on the same time scale, I guess!

Comments (4)

Vickie Nagy
Coldwell Banker Residential Real Estate - Palm Springs, CA
Vickie Jean the Palm Springs Condo Queen

Great post Amy! Too bad that it's members only. It's time for you to become a Rainmaker!

Mar 02, 2011 03:41 PM
Kathy Smiley
Rodeo Realty ~ Fine Estates Westlake Village - Westlake Village, CA
Westlake Village, CA - "Making YOU Smile!"

Amy - you should edit and show this as public. Good post!

Mar 02, 2011 03:47 PM
MichelleCherie Carr Crowe Just Call...408-252-8900
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

This confuses and scares more poor buyers than almost anything else.

Mar 02, 2011 05:04 PM
Amy Sharrow
Mountain Top Producers - Running Springs, CA

I'm still too new to understand the difference.  I am learning as I go here on AR. 

My 'other' job is working at a firm that processess and represents property tax appeals - which has tied in nicely with Real Estate :)

Mar 03, 2011 05:23 AM