What you and your clients should know about supplemental taxes.
Have you ever heard of supplemental taxes? If you are a real estate professional, lender, or anyone that works with clientele in that general field, this is absolutely something you should be informed about, and we are here to help with that. We want to be very clear about what supplemental taxes are, how to calculate them, and what they mean for you, especially with the shifting market and changing values.
Supplemental taxes come as a separate tax bill, so make sure to prepare your clients so they aren’t alarmed when it arrives in the mail. To calculate the tax amount, subtract your old home’s value from your new home’s. The tax is on that difference, and it will be prorated based on the months left in the fiscal year. The values are calculated at the time you close escrow.
If you need help with this, there is a great resource on the San Diego county tax assessor’s website. You can put in those amounts, and it will give you an idea of what the supplemental tax bill is going to be. This allows you to estimate what to expect.
Now that prices have tapered off and even sometimes dipped in our area, it is crucial that you and your database are informed. We encourage you to use this topic to help your sphere of influence. This is a great way to be an educator in this field, especially since the landscape of the industry changes every day.
If you have any questions about this topic or want the link we referenced, don’t hesitate to reach out! We are available through phone call or email, and we would love to hear from you.