In California, property taxes are a major source of revenue for local governments and are assessed on real property, including residential and commercial real estate. Property taxes consist of two main components: the regular property tax and the supplemental property tax.
1. Regular Property Tax:
– Assessment: The regular property tax is based on the assessed value of the property, which is determined when the property is purchased or newly constructed. The assessed value is typically set at the purchase price or construction cost (known as the base year value).
– Rate: The property tax rate is calculated based on the local tax rates within a specific jurisdiction, which may include city, county, and other local entities.
– Due Date: Regular property tax payments are typically due in two installments each fiscal year. The fiscal year in California begins on July 1st and ends on June 30th. The due dates for the two installments are as follows:
– First Installment: Due on November 1st, delinquent if not paid by December 10th.
– Second Installment: Due on February 1st of the following year, delinquent if not paid by April 10th.
2. Supplemental Property Tax:
– Assessment: The supplemental property tax is an additional tax assessment that occurs when there is a change in the property’s ownership or when there has been new construction or significant changes in the property’s value.
– Rate: The rate for the supplemental property tax is calculated based on the difference between the old assessed value and the new assessed value (usually the purchase price or new construction value). The rate can vary based on the locality.
– Due Date: Supplemental property tax bills are issued separately from regular property tax bills and are due in full 30 days from the date of issuance.
It’s important to note that supplemental property taxes are not prorated throughout the fiscal year; they are due in full based on the date of the ownership change or completion of new construction. The exact amount of the supplemental property tax will depend on factors such as the property’s value, the specific tax rate for the locality, and any applicable exemptions or deductions.
Property owners in California should receive annual property tax statements that detail the amount due for both regular and supplemental property taxes, if applicable. It’s crucial for property owners to pay these taxes on time to avoid penalties and interest charges for late payments.
For specific information about property taxes and supplemental property taxes for a particular property in California, property owners should contact their county’s tax assessor’s office or visit their official website, as tax rates and rules can vary by county and locality.