The owners or trustees directly receive the supplemental tax bills for Los Angeles. They are separate from the regular annual tax bills. These supplemental bills are not typically paid by the lender in case of impounded property taxes.
When there is a change in ownership of a property, California state law often requires the Assessor to reappraise the property. The supplemental assessment reflects the difference between the new value. For example, the sale price of $900,000 and the old value and the previous assessment of $600,000. It is important to note that this is not a penalty. It is simply a way for the county to recapture the difference in property taxes from the date of sale. Or, if applicable, the date of passing until the closing date of the sale. The supplemental tax bill is a one-time bill. It collects the additional taxes owed based on the difference in property value for the applicable period.
Using my example, the extra $300,000 from the sale price would be subject to property taxes from the date of sale or the date of passing until the day escrow closed. The proration of this additional amount is based on the actual number of days within that period.
While it can be frustrating that it often takes months to receive the supplemental tax bill, it is essential to pay it promptly to avoid penalties.
Thanks for this. I always thought this was paid through escrow. I mean it should be. It’s not like the calculation is mysterious. But good to know the bill can come later and plan for that.