If the Assessor's Office reappraises your property due to
a change in ownership or new construction, you will be notified
by mail of the new assessed value. This notification is known
as a ‘Notice of Supplemental Assessment.’ The reappraisal
may also result in the issuance of a supplemental tax bill (and
sometimes more than one bill) if there was an increase in value,
or it may result in the issuance of a refund check if there was
a decrease in value.
It is important to understand that supplemental tax bills
are in addition to the regular annual tax bill and are mailed
directly to the owner of the property. These bills are the responsibility
of the owner even if the property taxes are normally paid by
a lender through an impound account. You may need to discuss
the matter carefully with your lender. In any case, do not presume
that your lender will automatically pay these types of bills.
For an overview of the Supplemental Assessment process see below.
Proposition 13
Proposition 13 was passed by voter initiative on November
7, 1978. It requires the reappraisal of property at the time
of any change of ownership, or at the time of completion of new
construction.
The Supplemental Assessment Law
The California State Legislature created the "supplemental
assessment" of property in 1983. Revenue and Taxation Code
Section 75 states that the intent of the State Legislature was
"...to fully implement Article XXIIIA of the California
Constitution and to promote increased equity among taxpayers"
by enrolling and making adjustments of taxes resulting from changes
in assessed value due to changes in ownership and completion
of new construction at the time they occur."
The Fiscal Year for Property Taxes
The fiscal tax year begins on July 1 of any year and ends
on June 30 of the next calendar year.
Summary Statement
The action of the Legislature resulted in the following typical
scenario: A property owner has owned their property for many
years. The assessed value of their property on January 1, the
lien date for taxes, is $30,000. They sell their property for
$100,000. Under "Supplemental Assessment," the new
owner will be billed for the increase in value for the prorated
portion of the fiscal tax year for which the increase in value
exists, beginning with the first day of the month following the
reappraisable event.
An Example of Supplemental Assessment
Suppose a property sells on October 8, 2007. On that date, the seller's assessed value was $30,000. The purchase price was $100,000. On the first day of the month following the change of ownership, there are eight months remaining in fiscal year 2007-2008. The proration factor for the supplemental assessment purposes is .67, based upon the eight remaining months of the twelve-month fiscal year. The resulting bill would be derived by multiplying .67 (8/12) times $70,000 (the value increase), times the applicable tax rate as set by the Board of Supervisors.
Double Billing Period
A special case occurs if the reappraisable event occurs in the period between January 1 and June 30 of any year. Suppose a change of ownership occurs on February 15, 2007. The assessed value was $20,000, and the purchase price is $100,000. The new owner would owe supplemental taxes on the $80,000 increase in value applicable to the remainder of the 2006-2007 fiscal year, which includes the months of March, April, May and June of 2006. Proposition 13 requires the Assessor to increase the assessed value by a maximum of 2% for fiscal year 2007-2008, which begins on July 1, 2007. In this case, the assessed value for 2007-2008 would increase to a maximum of $20,400. Therefore, the assessed value for the entire fiscal year 2007-2008 must be supplementally assessed in the amount of $100,000-$20,400, or $79,600.
Other information you should know
It is possible for a buyer's value to be less than the prior
owner's assessed value. In this circumstance, a "negative
supplemental" assessment occurs, leading to a refund of
taxes paid to the new owner.
The new owner of the property will receive a "Notice
of Supplemental Assessment." If an appeal of the Supplemental
Assessment value is to be filed, it must be done within sixty
days of the mailing of the "Notice of Supplemental Assessment,"
not when the supplemental bill is received.
Also See: 
A Guide To The Supplemental
Assessment Process
Contacting Us  |
Madera County Assessor's Office
200 W. 4th Street
Madera, CA 93637
Telephone: (559) 675-7710
Fax: (559) 675-7654
Office Hours: 8:00 AM to 5:00 PM
Monday through Friday
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