Supplemental Property Taxes

In the Tahoe area an aspect of the home buying process you’ll want to consider are property taxes. Especially, if you’re buying a home as a second home, you’ll want to make sure you understand the added costs you’re going to be incurring.

What Are Supplemental Property Taxes?

Supplemental property taxes have had their impact on the Lake Tahoe area since 1983, but still most people don’t know the ins and outs of this complicated tax arrangement. It’s important that you have a basic understanding of what these taxes are, how they affect you and your property, and what they do as a whole for the local community.

When Did This Tax Law Come Into Effect?

This tax law was signed into effect in 1983 in order to provide more funding to California schools. So far this tax revision has directed an estimated $300 million in extra funding to California school districts.

This funding helps to strengthen the local Tahoe school districts and provide a much better education for the growing mountain community.

What Effects Do Supplemental Property Taxes Have On My Property?

This property tax mostly effects new homeowners, and those who are doing upgrades to their properties. So, if you’re moving from the woods to the lake, or building an extension to your mountain cabin then you’ll have to pay a new supplemental propter tax on your home.

Most Common Billing Methods

The amount of supplemental tax you’re going to pay will be based upon the assessment of your home. This can take anywhere from three weeks to six months, and will depend upon the workload of the local property assessor.

The process can become longer if you decide to file a Homeowner’s Exemption, and potentially an Assessment Appeal. Once those steps have been taken the county will calculate what you own based upon a formula and mail you your supplemental tax bill.

The bill is they payable in two installments which are outlined in the bill you receive in the mail.

Understanding Tax Proration

Your supplemental property taxes are different from the rest of your taxes, as the date begins the moment you take ownership of your property, or complete the construction on your home, until the end of the tax year.

We’ve spoken with some homeowners that see this added tax as a burden. However, it’s important to remember that the money generated is going back into education for the state and your local community.