If you just closed on your home, you’ve probably got a lot of things on your mind, like home maintenance, homeowner insurance and property taxes. You may have an escrow account (also known as an impound account) with your lender that splits up your taxes and homeowner insurance into monthly payments rather than a lump sum.
You get a supplemental tax bill in the mail. Now what?
A supplemental tax bill is one you get for additional charges not covered by your annual tax bill. Supplemental tax bills are mailed directly to the homeowner and are generally not paid out of the escrow account.
Let’s unpack the way supplemental taxes work.
California Supplemental Tax Bills
Under current California law, after there is a change of ownership to a home, the property is reassessed. A supplemental tax bill covers the difference between the previous homeowner’s taxes and the newly assessed taxes from when you purchased the home. Think of it as a catch-up bill.
California homeowners can expect to see a supplemental tax bill within a few months of closing on a new home.
You may also receive a supplemental tax bill for changes that add property value, like adding square footage, new construction or special features like a swimming pool.
It’s important to note that this bill doesn’t get sent to your mortgage servicer.
Supplemental tax bills are separate from your regular escrow account (if you have one), so it is important to set aside funds specifically to pay this bill.
Like any other bill, supplemental tax bills should be paid by the due date, or you could be charged a delinquency penalty.
Questions About California Supplemental Taxes?
You can contact your local taxing authority with any questions you have about your regular tax bill as well as any special assessment.
Quicken Loans clients with an escrow account can always view their tax information on the escrow page of their Rocket Mortgage Servicing account. If you have any questions for us, you can leave them below, and we’ll get you the answer or get you to the right place.
If so, subscribe now for tips on home, money, and life delivered straight to your inbox.