10/07/2017
Information provided by SACRAMENTO COUNTY OFFICE OF THE ASSESSOR; (916) 875-0700
Supplemental Assessments reflect any increase in assessed value due to a change in ownership or completed new construction. These values become effective as of the first day of the month following the change in ownership date, or the new construction completion date.
Supplemental assessments result in tax bills that are "in addition to" (supplemental to) the annual tax bill that is sent to property owners in October.
SUPPLEMENTAL EVENTS;
Changes in ownership or new construction activities that trigger supplemental assessments are referred to as "supplemental events"
CHANGE IN OWNERSHIP IS;:
the sale or transfer of a property.
Certain forms of property transfer are not subject to reassessment. These exceptions include:
* Inter-spousal Transfers
* The addition of joint tenants
* The transfer, sale or inheritance of certain properties between parents and their children or grandchildren when an application for exclusion is filed with the assessor.
* Transfers between registered domestic partners.
NEW CONSTRUCTION IS;
* Any improvement to real property, such as adding a room, pool or garage
* Any alteration which restores a building or other improvement to the "substantial equivalent of new" (such as completely renovating a building)
* An alteration that changes the way a property is used (e.g. a residence is converted to a retail store, or a garage is converted to living area)
Only The Newly Constructed Portion May Be Reassessed.
REASSESSMENT;
A supplemental event results in reassessment.
When a property is reassessed, the assessor determines the fair market value of the portion that is newly constructed or that changed ownership, based on the event date. Once the new assessed value of the property has been determined, the assessor will send a Notice of Supplemental Assessment that will show the new assessed value, as well as the net supplemental assessment amount.
A Reassessment May be;
* An assessed value increase resulting in a supplemental bill(s)
* An assessed value decrease resulting in a supplemental refund(s)
* Retaining the same assessed value (no change)
SUPPLEMENTAL TAX BILLS;
Depending on the date of supplemental event, either one or two supplemental tax bills will be produced:
* Supplemental events that occur between January 01 and May 31 will generate two supplemental bills.
* Supplemental events that occur between June 01 and December 31 will generate one supplemental bill.
Taxpayers may also receive more than one supplemental tax bill if more than one supplemental event has occurred in a fiscal year. If this occurs, the bills are prorated between each owner for the period of time the property was owned.
EXAMPLE;
New value at date of purchase or completion of construction:$320K.
Prior Assessed value on current main tax roll: - $200K
Net supplemental Assessment increase will be: =$120K
If the net supplemental difference is a positive amount, ia bll will be generated if the bill amount is over $10.
If the net supplemental difference is a negative amount, a refund will be generated if the amount of the refund is over $10 and the annual tax bill has been paid in full.
COMPUTATION OF SUPPLEMENTAL TAXES;
The formula for calculating a supplemental tax amount is shown below;
(Amount Of Net Supplemental Assessment) x (Tax Rate) x (Monthly Factor)
THE AMOUNT OF NET SUPPLEMENTAL ASSESSMENT is the new assessed value, minus the prior assessed value, minus any exemptions allowed.
TAX RATE IS 1% plus recapture factor for any voter-approved bonded indebtedness. Most tax rates in Sacramento County are between 1% and 1.20%
THE MONTHLY FACTOR represents the number of whole months remaining in the fiscal year after the month of the supplemental event. The chart below shows theses factors.
MONTH (FACTOR)
January (42)
February (33)
March (25)
April (17)
May (.08)
June (1.00)
July (.92)
August (.83)
September (.75)
October (.67)
November (.58)
December (.50)
PAYMENTS;
The full amount of each tax bill installment must be paid to the Tax Collectors Office. Partial payments are not accepted.
Payment due dates are printed on the tax bills and penalties are added if payments are not made by deadlines.
If property taxes are paid through an impound account (i.e. with mortgage payments), it is important to note that mortgage servicing agencies DO NOT RECEIVE THE SUPPLEMENTAL TAX BILL. Supplemental tax bills are sent directly to the property owner. Only annual tax bills bills mailed in October are sent to lenders. The supplemental tax bill is in addition to the annual bill--Both bills must be paid.
Filing for a review or appeal (see Below) does not relieve the taxpayer's obligation to pay the taxes on the subject property, on or before the bill due date.
INFORMAL ASSESSOR REVIEW;
Prior to filing an appeal, if a taxpayer disagrees with a supplemental assessment, it is recommended to file a no-cost informal review with the assessor as soon a s possible upon receiving the "Notice Of Supplemental Assessment". If the taxpayer can provide timely and convincing evidence that the assessment was incorrect, the assessment may be corrected without a formal appeal hearing.
APPEALS;
Supplemental assessment appeals must be filed with the Appeals Board (not the Assessor) within 60 days of the mailing date shown on the supplemental bill or the refund check. A non-refundable processing fee is due at filing.
All information subject to verify for all interested parties.
