Supplemental Tax Bill - You will get one when you Purchase a home!

What is a supplemental tax bill?

As the name suggests, a supplemental tax bill is a property tax bill issued in addition to the annual regular secured property tax bill. The Assessor-Recorder’s office reappraises property whenever a change of ownership occurs or new construction is completed. The Assessor will send you a “Notice of Supplemental Assessment” to inform you of the new assessed value. Following this notification, the Office of the Treasurer & Tax Collector will send one or more supplemental tax bills to collect the difference between the taxes on the old and new values for each year. Whereas the deadlines for payment of regular property tax bills fall on the same dates each year (December 10 and April 10) the deadlines for payment of supplemental bills can vary based upon the issue date of the bill. Please note that the regular secured property tax bill reflects only the assessment amount of your property as of January 1, 2007. You will not be liable for any supplemental taxes until the date that a supplemental tax bill is issued.

This is very important to keep in mind when purchasing a home. The supplemental property tax bill will be mailed to you several months after your purchase. You may get one or two statements depending on the close of escrow date. They are triggered by the change of ownership and will apply whether or not you take a loan to purchase the property. However, a subsequent refinance of the property will not necessarily trigger a new supplemental tax bill. The completion of permitted improvements to a property may cause a supplemental tax bill to be generated, corresponding to an increase in assessed value commensurate with the cost of the improvements, but this can occur whether or not the property is refinanced when the work is completed.

For more information please visit San Francisco Treasurer & Tax Collector Website!