What is a Supplemental Tax Bill?

Posted by Jeremiah M. Moersch on Thursday, April 4th, 2019 at 2:23pm.

Often mistaken for an advertised scam, this bill is real.

All new homeowners receive a supplemental tax bill, separate from all other property tax bills within 6-12 from the date of the home purchase. Since this bill is only generated once, it is sent directly to homeowners for payment. Even if monthly mortgage payments contribute to an impound or escrow account and the mortgage company pays the property taxes directly, homeowners are still responsible for paying this supplemental tax bill separately. In most cases, mortgage companies will not even receive this special bill.

Here is the tax assessor’s brief video on how this special bill is calculated as well as a more detailed description.   

Anytime a property is sold to a new owner or new construction is completed, state law says it must be reassessed by the County. That reassessment will most likely change the assessed value of your property.

When your assessed value changes, the County must recalculate your property taxes, and when those change, we will send you a supplemental tax bill.

The supplemental bill shows your home’s change in value from the day you closed escrow, or reported the new construction, through the end of the fiscal year, which is June 30th.

To calculate your supplemental tax bill, subtract your home’s old value from the new market value based on the reassessment. You are taxed on that difference. Next, we prorate what you owe based on the number of months left in the fiscal year. Finally, the 1% tax rate is applied to that amount to get your supplemental tax total.

San Diego County Treasurer-Tax Collector

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