Title Thursday: Supplemental Taxes

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In addition to annual taxes, you may be responsible for paying supplemental property taxes. State law requires the Assessor to reappraise property upon a change in ownership or new construction. The supplemental assessment reflects the difference between the new assessed value and the old or prior assessed value. If the property is reassessed at a higher value than the old assessed value, a supplemental bill will be issued. If the property is reassessed at a lower value than the old assessed value, a refund will be issued.

The taxes are prorated based on the number of months left in the fiscal year from the date of ownership change or the new construction completion date. If the change in ownership or new construction occurs between January 1st and May 31st, two supplemental tax bills will be issued. The first supplemental bill will be for the remainder of the fiscal year, and the second supplemental bill will be for the fiscal year that follows.

Supplemental tax bills are mailed directly to the property owner and are your responsibility. In general, they are not paid out of your impound account. Please check with your lender.

If you would like additional information regarding this subject please contact us @ cs@pct.com

Property Taxes: California Homeowner Tax Exemption

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Have you filed?

What is a homeowner’s exemption? A homeowner’s exemption is just a property tax exemption. The California state constitution provides for the exemption of up to $7,000 in assessed value from property tax assessment of any property owned and occupied as the owner’s principal place of residence. This means that the exemption removes up to $70 from your annual property tax bill. This may not seem like much, but it’s easy to obtain, and it adds up! There’s no reason to forgo the benefit.

In order to qualify for the exemption for property, you must be its owner or co-owner, and must use the property as your principle place of residence. (In other words, you only get one exemption…vacation homes don’t count!) Any place you own as your principle place of residence, and that is also subject to property tax, qualifies. You also have to file an exemption claim form with the County Assessor. Luckily, once the exemption has been granted, you won’t need to re-file the claim unless the title on the deed to the property changes.

There is one catch: if you plan to refinance your home, or plan to move your home out of (or into) a living trust, note that doing so may require you to change the title on the deed to the property.  Each time you do so, you will have to re-file your exemption claim, to ensure that you continue to receive the exemption.

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Looking for New Business? These Tax Propositions Might Help.

Proposition 60:
Senior citizens 55 years of age or older can buy a residence of equal or lesser value than their existing home and trans- fer the current taxable value to their new property. This provides property tax relief for seniors by preventing a tax increase if they sell an existing home and buy another in the same county. This is a one time program, and you must buy and sell within two years. The properties must also be the principal place of residence. Finally you must file the necessary
application with the Tax Assessor.

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