Irvine Real Estate Link, CA – Orange County Supplementary taxes

by Robert Mack on August 8, 2008

in Irvine Real Estate

The supplementary tax bill was introduced in the State of California on July 1st 1983. It is a rather intricate assessment, but I’ll try, for the benefit of some of our readers, to make it as simple as possible. Most of you know what it is. Simply put: when a property changes hands (or after a major improvement) a one-time supplementary tax is imposed. This is best illustrated by giving an example.

Mr. and Mrs. X have paid $350,000 for their newly built Irvine home in, say, 1998. In 2007 they decided to sell it to Mr. and Mrs. Y for an agreed amount of $575,000. Since the Irvine property has changed hands, at a positive difference of $225,000 an additional real estate tax will be levied to bring it up to the new assessed value. The reverse is also true and the new owner may indeed receive a supplementary tax refund. However, I wouldn’t normally count on this refund to happen automatically; I’d contact the County and remind them.

Supplementary taxes in Irvine also apply to renovation of existing buildings, such as addition of a bedroom. Since this addition raises the property value, a supplementary tax is imposed for that portion of the property. Again, the reverse is also true. When you demolish part of your property without further improvement you may be entitled for a one-time supplementary tax refund. For further information and more complicated situations contact Orange County Assessor’s Office at (714) 834-2727.

Views, comments, responses and constructive criticisms are welcome.

Make it a great day.

The Mack Team
Robert & Tania Mack

Century21 Professionals
Irvine, Orange County, California.

http://www.irvinerealestatelink.com

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