PROPERTY TAX INFORMATION
SUPPLEMENTAL PROPERTY TAX
On July 1, 1983, CaliforniaState law was changed to require the reassessment of property as of the first day of the month following an ownership change or the completion of new construction. In most cases, this reassessment results in one or more supplemental tax bills being sent to the property owner, in addition to the annual property tax bill. This information, prepared at the direction of the Treasurer-Tax Collector, focuses on the supplemental tax bills generated by the reassessment of property values.
HOW WERE CHANGES IN PROPERTY VALUE, DUE TO SALE OF PROPERTY OR NEW CONSTRUCTION, TAXED IN THE PAST?
The fiscal year is July 1 through June 30. Prior to July, 1983, the Assessor reassessed property each January 1 for taxes due the following fiscal year. Any change in property value resulting from a change in ownership or the completion of new construction that took place after January 1 was not reevaluated and taxed until the following year.
WHAT IS MEANT BY NEW CONSTRUCTION OR CHANGE OF OWNERSHIP?
Typically, new construction is any substantial addition to real property, such as original construction, adding a new room, pool, or garage; or any substantial alteration that restores a building, room, or other improvements to the equivalent of new.
Most changes in ownership caused by the sale of property result in reassessment. However, inter-spousal transfers; the transfer, sale, or inheritance of property between parents and their children and the addition of joint tenants do not result in the reappraisal of property values. Parent/child transfers require exemption fillings within a limited period.
Homeowners over the age of 55 years who sell their principal residence and purchase a replacement dwelling within two years that is of equal or lesser market value and is located in the same County, are eligible to transfer the pre-sale assessed value of their original property to the replacement dwelling. Pre-sale assessed values may be transferred to counties where local ordinance permits. All counties within the State of California do not accept such transfers. TrinityCounty does not.
Information or claim forms regarding assessment issues should be referred to the Assessor’s Office (530) 623-1257.
WHAT HAPPENS WHEN THE ASSESSOR REASSESSES MY PROPERTY?
The Assessor first determines the new value of the property based on current market values. The Assessor then calculates the difference between the new value, set at the time of purchase or completion of new construction, and the old value (set on January 1 of the previous year). This results in the supplemental assessment value. Once the new assessed value of your property has been determined, the Assessor will send you a notification of the amount.
Example:
New value at date of purchase or
completion of new construction$320,000
Assessed value for current fiscal year- 300,000
Supplemental assessment value will be$ 20,000
This reassessment usually results in an increase in property value, in which case your supplemental taxes will be calculated based on the change in value and one or more supplemental tax bills will be created and mailed to you by the Treasurer-Tax Collector. In some instances the reassessment results in a reduction in value, in which case a refund will be mailed by the Auditor-Controller’s Office. A reduction in valuewill not reduce the amount due on the annual tax bill. The annual tax bill must be paid in the amount originally billed.
DO I HAVE THE SAME RIGHT TO APPEAL THE ASSESSOR’S SUPPLEMENTAL ASSESSED VALUEAS I DO THE ANNUAL ASSESSED VALUE?
Yes. You may take the matter up with the Assessor to see if that office will change the valuation. The Board of Supervisors has established an Assessment Appeals Board for the purpose of resolving valuation problems. Application for appeal must be filled within sixty days of the date of notice.
If you choose to appeal your assessment, you should still pay your tax installments in full by the appropriate deadlines; otherwise, you may incur penalties while the case is in appeals. If your appeal is granted, a refund will be made by the Auditor-Controller’s Office.
IF I RECEIVE A SUPPLEMENTAL TAX BILL, WILL I ALSO RECEIVE AN ANNUAL TAX BILL IN NOVEMBER EACH YEAR?
YES. The supplemental tax bill is in addition to the annual tax bill and both must be paid as specified on the bill. For information on the annual tax bill, see information on Secured Property Taxes.
IF I PAY MY PROPERTY TAXES THROUGH AN IMPOUND ACCOUNT WILL MY SUPPLEMENTAL TAX BILL BE SENT TO MY LENDER?
NO. Unlike the annual tax bill, lending agencies do not receive a copy of the supplemental tax bill. When you receive a supplemental tax bill, you must contact your lender to determine who will pay the bill, you or your lender.
WHAT IF I PURCHASE A PIECE OF PROPERTY AND THEN SELL IT AGAIN AFTER A FEW MONTHS?
If you purchase and then sell property within a short period of time, the supplemental tax bill you receive should cover only those months during which you owned the property and the new owner should receive a separate supplemental tax bill. Because of the number of properties changing hands each year, there may be delays in placing new assessments on the tax roll. Be sure to check the dates used to prorate the bill to ensure the period covered is the period during which you actually owned the property.
WHEN I PURCHASE PROPERTY OR COMPLETE CONSTRUCTION AT SOME POINT DURING THE FISCAL YEAR, WILL I BE TAXED ON THE SUPPLEMENTAL VALUE FOR THE ENTIRE FISCAL YEAR?
No. You are only taxed on the supplemental value for the portion of the current fiscal year remaining after you purchased the property or completed new construction, however, if the event was prior to January 1, you will receive an additional supplemental tax bill for the next fiscal year.
WHEN ARE SUPPLEMENTAL TAX PAYMENTS MADE?
The date on which supplemental tax bills become delinquent varies depending upon when they are mailed. If the bill is mailed between July 1 and October 30, the taxes become delinquent at 5 p.m. on December 10 for the first installment and 5 P.M. on April 10 for the second installment. This is the same delinquency schedule as the annual/secured tax bills.
If the bill is mailed between November 1 and June 30, the delinquency dates, which are shown on the tax bill, are determined as follows: the first installment is delinquent at 5 p.m. on the last day of the month following the month the bill was mailed; the second installment is delinquent at 5 p.m. on the last day of the fourth month after the first installment delinquency date.
Penalties of 10% are added to any installment not paid timely and an additional $10.00 charge is added to a late second installment payment.
IF PAYMENT OF THE SUPPLEMENTAL TAX BILL IS NOT MADE BEFORE THE DELINQUENCY DATE BECAUSE OF MISUNDERSTANDING BETWEEN MY LENDER AND MYSELF, MAY I HAVE THE PENALTIES EXCUSED?
No. State law states that this is not an acceptable reason for waiving penalties.
WHAT HAPPENS IF I FAIL TO PAY MY SUPPLEMENTAL TAX BILL?
The same laws apply as for unpaid annual tax bills. If your supplemental tax bill is not paid by the June 30 after which the second installment became delinquent, the property becomes tax defaulted. This is the case even if you have paid your annual tax bill. At the end of the fifth year of delinquency the property becomes subject to the Treasurer-Tax Collector’s power of sale as outlined in information regarding delinquent taxes.
AM I ENTITLED TO A HOMEOWNER’S EXEMPTION ON MY SUPPLEMENTAL TAX BILL?
You may very well be eligible for a homeowner’s exemption on your supplemental tax bill. Exemptions, however, are not granted automatically; you must apply to the Assessor before the 30th day following the Assessor’s date of the notice of your supplemental assessment. As long as the home you purchased did not reflect the homeowner’s exemption on the current year’s assessment, and as long as you occupy the home as your principal residence within 90 days of the purchase date, you will be allowed the full $7,000.00 amount on your supplemental assessment. If your newly acquired home did reflect the full homeowner’s exemption on the secured tax roll, you are not eligible to receive the exemption on your supplemental assessment.
ARE OTHER EXEMPTIONS AND ASSISTANCE PROGRAMS AVAILABLE THAT WILL HELP DEFRAY THE AMOUNT OF SUPPLEMENTAL TAXES DUE?
Yes. Supplemental taxes are eligible for the same property tax exemptions and assistance programs as your annual taxes. In addition to the homeowner’s exemption, you may apply for other assessment exemptions such as veteran’s, church and welfare. You must file for all exemptions before the 30th day following the date of the Assessor’s supplemental assessment notice. For further information contact the Assessor’s Office at (530) 623-1257.
The State of California administers programs that provide property tax assistance and postponement of property taxes to qualified homeowners and renters who are 62 years of age and older, blind, or disabled. For information regarding the Homeowner’s or Renter’s Assistance Program, Call 800-338-0505. For information regarding the Property Tax Postponement Program call 800-952-5661.
SECURED PROPERTY TAXES
This information, produced at the direction of the County Treasurer-Tax Collector, provides an overview of the property tax systems. This information should be especially helpful to new homeowners who are paying property taxes for the first time.
Although property taxes are collected by the Treasurer-Tax Collector; tax laws are enacted by the California State Legislature.
TAXPAYER RESPONSIBILITIES FOR PAYMENT OF TAXES
As the owner of property in TrinityCounty, you are responsible for the timely payment of your property taxes. If you are a new owner, there was most likely a pro-ration made between the buyer and seller during escrow, however, the funds may not have been withheld and payment made. You should refer to your escrow papers if there is a question.
The Treasurer-Tax Collector updates new owner information several times a year. Generally New Owner Notices are sent approximately 10 days prior to each delinquent date. Please allow for a time lapse between recording date and entry to the tax file. Annual tax bills, which can be paid in two installments, are mailed once a year by November 1. Since the bill contains payment stubs for both installments, this is the only bill regularly mailed each year by the Treasurer-Tax Collector. Depending on when the ownership change is placed on the tax roll, the annual tax bill may have been sent either to the previous owner or directly to you. It is your responsibility to obtain tax information. State law stipulates that failure to receive a tax bill does not permit the Treasurer-Tax Collector to waive penalties for late payments.
In addition to annual taxes, you may be responsible for payment of supplemental property taxes. Any time property is sold, or new construction completed, the value of the changed property is reassessed. If the property has been reassessed at a higher value, you will receive one or more supplemental tax statements in addition to the annual tax bill. For more information regarding supplemental tax bills, please refer to the pamphlet on Supplemental Taxes. If the property has been reassessed at a lower value, you may receive a refund.
MAILING OF ANNUAL TAX BILLS
Annual tax bills are mailed to owners of record each year on or before November 1. If you do not receive your annual tax bill by November 10, you should contact the Treasurer-Tax Collector’s Office. Please provide your Assessor’s parcel number or, the property address or, Assessee’s name. Also, you may obtain information in person at the Treasurer-Tax Collector’s Office. Supplemental tax statements are mailed throughout the year. See information on Supplemental Taxes.
SECURED/ANNUAL TAX PAYMENT DATES
You may pay your annual tax bill in two installments. The first installment is Due November 1 and becomes delinquent at 5 p.m. on December 10*. The second installment is due February 1 and becomes delinquent at 5 p.m. on April 10*. You may, if you choose, pay the entire bill when the first installment payment is made.
Since Supplemental tax bills are mailed throughout the year they may or may not be due or delinquent at the same time as your annual tax bill.
METHODS OF PAYMENT
The best way to pay your taxes is by mail. When you receive your tax bill, it has two parts that are payment stubs for each installment and a pre-addressed envelope is included which ensure prompt handling of your payment. All payments must be made payable to: Treasurer-Tax Collector, TrinityCounty. The Assessor’s Parcel Number should be written on any payment document. Your canceled check serves as your receipt. PLEASE DO NOT SEND CASH. Mailed payments must be postmarked before the delinquent date. Payments may be made in person at the Treasurer-Tax Collector’s Office.
WILL I RECEIVE A TAX BILL IF I PAY TAXES THROUGH AN IMPOUND ACCOUNT?
If your taxes are paid through an impound account, your lender will receive your annual tax bill and you will receive an information copy. Supplemental tax bills, however, are not sent to your lender; they are mailed directly to you. It is your responsibility to contact your lender to determine who will pay the supplemental tax bill, you or your lender.
WHAT DETERMINES THE AMOUNT OF TAXES THAT I PAY?
The CountyAssessor determines the taxable value of your property. Generally, the taxable value is the cash or market value at time of transfer. This value increases not more than 2% per year until the property is resold or any new construction is completed, at which time the portion which changes must be reassessed. Additional information may be obtained from the CountyAssessor at (530) 623-1257.
After the Assessor has determined the property value, the Auditor-Controller applies the appropriate tax rates, which include: the general tax levy, locally voted special taxes, and any city or district assessments. The general tax levy is determined in accordance with State law and is limited to $1.00 per $100.00 taxable value of your property. After applying the tax rates, the Auditor-Controller calculates the total tax amount. The Treasurer-Tax Collector prepares property tax statements based on the Auditor-Controller’s calculations, mails the tax statements and collects the taxes.
IF YOU DISAGREE WITH THE VALUATION THE ASSESSOR HAS PLACED ON YOUR PROPERTY
You should first discuss the matter with the Assessor’s Office and if the question is not resolved to your satisfaction there is an Assessment Appeals Board established for the purpose of reviewing taxable values and such matters. Appeals on regular assessments must be filed each year between July 2 and September 15. The valuation information may be obtained from the Assessor’s Office by July 1 each year. If you choose to appeal your assessment, you should nonetheless pay the tax installment presently due and payable by the appropriate deadline. If your appeal is granted a refund will be made. If you have not made a timely payment, you may incur penalties while the case is in appeals.
FAILURE TO MAKE A TIMELY PAYMENT
If you do not pay the first installment of your annual tax bill at the Treasurer-Tax Collector’s Office by 5 p.m. on December 10* or payment is not postmarked by that date, then the taxes become delinquent and a 10% delinquent penalty is added to any unpaid balance. If you fail to pay the second installment by 5 p.m. on April 10* or payment is not postmarked by that date, it becomes delinquent and a 10% penalty plus a charge of $10.00 is added to the unpaid balance. If you fail to pay either or both installments at the Treasurer-Tax Collector’s Office by 5 p.m. on June 30,** or payment is not postmarked by that date, then the property becomes tax defaulted and additional penalties and costs accrue. Please see information on Delinquent Property Taxes.
PAYMENT OF PART OF CURRENT TAXES WILL NOT STOP PROPERTY FROM BECOMING TAX DEFAULTED ON JUNE 30.
Any unpaid taxes as of June 30 will cause the property to become tax defaulted and further penalties and costs will accrue. Please see pamphlet on Delinquent Property Taxes for more information.
EXEMPTIONS AND ASSISTANCE PROGRAMS AVAILABLE TO PROPERTY OWNERS WHICH HELP DEFRAY THE AMOUNT OF TAXES DUE
Applications for homeowner’s, veteran’s, church, welfare and other exemptions may be obtained from the Assessor’s Office. These programs allow, under specific qualifications, for assessment exemptions that result in tax savings. Additional information may be obtained from the Assessor’s Office, (530) 623-1257.
The State of California administers programs that provide property tax assistance and postponement of property taxes to qualified homeowners and renters who are 62 or older, blind or disabled. For information on the State’s Homeowner or Renter Assistance Program, call 800-338-0505. For information on the Property Tax Postponement Program, call 800-952-5661.