I knew this supplemental tax bill was coming. My mortgage broker had also told me that it was going to come 6-9 months after I purchased my house. Then, I got a notice in December that the County Assessor was in the process of evaluating my property.
Regardless that I was prepared for it, when it arrived it was still a little shocking. Its a lot of money!
But it’s just one of the perils of purchasing an older house.
Let me explain.
Supplemental tax is calculated when your county assessor appraises your property after a change of ownership (or completion of new construction). The difference between the new appraisal AND the old assessment value is then used to calculate your supplemental assessment.
In my case, it meant the property value had increased since the last time my house was assessed was in the 1970s. I am then required to pay taxes based on the change in value.
What most people do not realize is the supplemental tax bill is separate from your regular property tax bill. So if you have a monthly amount of your mortgage that goes to your biannual property tax bill, you can’t use that to pay for your supplemental tax bill. They are separate.
So those looking to buy an older house, remember to put money aside for supplemental tax. Your loan officer or broker should be able to estimate how much.
