Q. What is a supplemental Assessment?
A. Supplemental assessments are one-time only assessments which supplement the regular annual assessment. They are created each time a property is reappraised due to a change in ownership or new construction. They are based on the difference between the prior and the new assessment. This/these bill(s) or refund(s) may cover from 1 to 17 months.
Q. What is the Lien Date?
A. The lien date is the date the assessment becomes a lien on the property. All taxable property is put on the assessment roll as of this date. In the case of construction in progress, the value reflected is that of its stage of completion on lien date.
New legislation has established January 1st as the Lien date for future tax rolls. (From 1967 to 1996, the lien date was March 1).
Q. If I add on to my home, will the whole property be appraised?
A. No. Only the newly constructed portion will be assessed at its current value. The original portion will retain its adjusted base value.
Q. If I build a new home and I do all the labor, will my actual cost be the taxable value?
A. No, not necessarily. The newly constructed home must be assessed at its market value. The market value includes all cost components, including material, labor, overhead, and profit, as though it were available for sale on the open market.
Q. My property value was reduced under proposition 8. Now the assessment has increased. Why?
A. Proposition 8 provides that your taxable value does not exceed the current market value of the property. Once a value is reduced under Proposition 8, it is reviewed annually and adjusted, according to the market value. Once the market value exceeds the adjusted base value, it will be restored to the adjusted base value.
Q. How come my neighbor’s and my tax bills are different when the houses are the same?
A. Proposition 13, passed by the voters in June 1978, requires that the base value of a property be established as of the date of change of ownership, or as of the date of completion of new construction. If you and your neighbor purchased your properties in different years or have different construction dates, your base values reflect different market values.
Q. I had a boat which I sold in March or a business I transferred in April. Do I still owe the taxes for the next fiscal year?
A. Yes. If you owned a boat or a business on the lien date, the taxes are your responsibility for the subsequent year.