Supplemental tax bill
An extra property tax bill sent to a new buyer in states where the assessed value resets on sale. Comes after closing and isn't in the escrow account, so buyers should plan for it.
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Free to set up. No credit card.Part 1 of 4
Why a seller cares
In states where the assessment resets on sale, the buyer gets an extra bill after closing for the difference. It is the buyer's, and a seller who mentions it avoids a confused call two months later.
Part 2 of 4
A simple example
Your California home was assessed at $250,000 and sells for $600,000. The buyer receives a supplemental bill for the difference, prorated, a few months after closing.
| Whose bill | What it covers |
|---|---|
| The buyer's | The reset from the old assessment to the sale price |
| Not the seller's | Your taxes were prorated on the old assessment at closing |
| Not in the buyer's escrow | It arrives separately, which is the surprise |
The supplemental bill belongs to the buyer and arrives after everyone thinks the taxes were settled.
Part 3 of 4
What people get wrong
That it is a mistake in the proration. It is a second bill for a second assessment, and it was always coming.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
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