What Is a Supplemental Tax Bill and Why Did I Get One?
Understand supplemental property tax bills. Get clear insights into why you received this specific property assessment and what comes next.
A supplemental tax bill represents an additional property tax assessment that homeowners may receive outside of their regular annual property tax statements. This bill is issued when a property undergoes a reassessment of its value, typically due to specific events. It serves to capture the increased tax liability for a portion of the tax year, reflecting a new valuation not yet accounted for in the standard annual billing cycle.
Understanding Supplemental Tax Bills
Supplemental tax bills are generated when a property’s assessed value changes significantly during a fiscal year, triggering an immediate reassessment. The primary events initiating this are a change in property ownership, such as a sale or transfer, or the completion of new construction. These events prompt local taxing authorities to establish a new base year value for the property.
When a property is sold, its sale price often establishes a new market value that differs from its previous assessed value. Building a new structure or making substantial additions to an existing property also increases its overall value. This reassessment leads to a new property tax calculation that begins from the date of the ownership change or construction completion.
A supplemental tax bill collects property taxes on this newly assessed value for the period between the triggering event and the start of the next regular annual tax bill. Unlike the annual tax bill, which is based on the property’s value as of a specific date, the supplemental bill covers this interim period. This allows the local government to collect taxes on the property’s updated value without waiting for the next annual billing cycle. A property owner might receive one or even two supplemental bills depending on when the change occurred within the fiscal year.
Calculating Your Supplemental Tax
The calculation of a supplemental tax bill involves determining the difference between the property’s new assessed value and its old assessed value, then prorating that difference for the relevant period. Local tax authorities first establish the new market value of the property following a change in ownership or new construction. This new valuation is then compared to the property’s prior assessed value to determine the “supplemental assessment.”
If the new assessed value is higher than the old one, a positive supplemental assessment results, indicating additional taxes are due. Conversely, if the new assessment is lower, a negative supplemental assessment may lead to a refund. This difference in value is then multiplied by the applicable tax rate. The resulting amount is then prorated based on the number of months remaining in the current fiscal year, starting from the first day of the month after the ownership change or construction completion. For instance, if a property’s value increases and there are six months left in the fiscal year, the supplemental tax would be calculated for those six months.
Receiving and Responding to Your Bill
Once a supplemental tax bill is issued, property owners receive it by mail. These bills are separate from annual property tax statements and are sent by the county tax collector’s office. The bill includes specific details like the property address, owner names, date of ownership change, billing date, fiscal year for assessment, and a breakdown of new and previous assessed values alongside the tax calculation.
Payment for supplemental tax bills is generally due in two installments, similar to regular property taxes. The specific due dates depend on when the bill is mailed, but they are clearly stated on the bill itself. Common payment methods include online payments via credit card or e-check, phone payments, or mailing a check. Credit card payments may incur additional processing fees.
Property owners are responsible for paying these bills on time, as supplemental bills are not usually sent to mortgage lenders, even if an impound account is used for annual taxes. Failure to pay by the delinquent date can result in penalties, which include a percentage of the unpaid amount and additional fees. If there are questions regarding the property valuation or the bill’s calculation, homeowners can contact their local county assessor’s office for clarification or to discuss potential assessment appeals, which have a limited timeframe.