The term, supplemental taxes, is confusing. We pay property taxes each month, wouldn’t the supplemental taxes be included in this? No, unfortunately. Supplemental taxes are a single tax on your property when it changes ownership, or has a significant reassessment. It is calculated by taking the difference of the previous appraised value, and the current appraised value. So, if your home was previously appraised at $200,000, you purchase it for $800,000, the difference would be $600,000 and that is what is taxed. Supplemental taxes never used to be much of a big deal. Houses changed ownership often, and supplemental taxes were minimal. We’re talking, a couple hundred dollars. Now, they are commonly a few thousand dollars. So, what the heck happened? Well, in this market, a lot of houses being sold are ones that haven’t been sold in a really long time. My husband and I recently bought a house, that h
My views on REAL Estate; trends, people, finances and any other ideas that are REAL estate related. Specializing in Santa Cruz and the Monterey Bay area of California.