Property Taxes Are Due!

April & December cans be very costly months.  Your income taxes are due in April, and, if you are like me, I get lots of yearly bills due in December.  And don’t forget about the holiday expenses!!! So what’s next?  PROPERTY TAXES ARE DUE!

Many states have different due dates for property taxes.  Always check with your county’s assessor and/or collectors office to verify.

If you are a property owner ( Residential or Commercial) in Los Angeles & Orange Counties of Southern California, mark these dates on your calendar.

January 1 –  the date the county reassesses your real property’s value

October 1 -30 – the date you will receive your tax bill

November 1 – Due date of 1st installment  – covers the July 1 thru Dec 31 time frame

December 10 – Due date of 1st installment – delinquent after 5pm

February 1 – Due date of 2nd installment – covers the Jan 1 thru June 30 time frame

April 10 – Due date of 2nd installment – delinquent after 5pm

But what happens if you bought the property during this year?

The assessed value will now be based on your sales price.  Your Closing Statement will include a expense line for Pro-Rate Property Taxes.  This amount will be based on the seller’s present assessed value and pro-rated to the close of escrow date.

The new homeowner will receive a Supplemental Tax bill – in their name.  This will cover the difference between the seller’s assessed value and the new owner’s sale price.

For example:  Present assessed value is $500,000.  Sales price was $900,000.  The Supplemental Property Tax Bill will based on the difference of $400,000 at the current property tax rate.  In Los Angeles & Orange Counties, it’s 1.25% for the current property tax rate.  Check your tax bill to see what chag

I recently received a call from a buyer who purchased one of my listings.  They had just received a property tax bill with the previous owner’s name and was asking how to forward this bill.

I explained that even though this bill was in the previous owners’ name, this was YOUR bill.

The LA County Assessor sent a DUPLICATE Bill for the yet unpaid 2nd Installment.  In this case, the property closed escrow before December 31.  The first Installment was paid & pro-rated as of the Closing date.

NOTE:  ASSESSED VALUE IS NOT MARKET VALUE!

Contact your real estate professional for current Market Value.

For further questions, contact Carol at 310-864-9738

Carol Gilles, Realtor of Fredericks Realty, has been assisting property owners for over 40 years.  With her knowledge & experience, Carol can help guide you through the Maze of a Real Estate Transaction.  Contact Carol today!