Why didn't the seller pay the supplemental tax bill?

Question: Dear Kari; My husband and I bought a home six months ago. We just now received in the mail a Supplemental Real Property tax bill. As per our understanding, this tax bill was for the seller to pay through the close of our escrow. Can you please shed some light on the confusing situation? Answer: Thank you for your good question. Let's first look at what a Supplemental Real Property Tax is. It was signed by the Governor of California in July of 1983 to help California's schools. In addition it is expected to produce more than $300 million per year. This tax only affects folks who are initiating new construction or buying property. Once the construction or purchase is complete the new owner will receive the Supplemental Property Tax bill that will then become a lien against the property. The supplemental taxes are assessed when there is a change in ownership. This bill is not created until the property has been transferred into the new owner's name. The tax is not paid in the escrow account because the bill is not owed until the escrow is closed. The exception to the rule is that an unpaid previously outstanding supplemental bill exists at the time the current escrow closes. It is the new owner's responsibility to pay these supplemental bills directly to the tax collector in addition to the regular annual tax bill. Remember if you have a loan on your property and you have elected to have your regular taxes in a tax impound account this supplement bill will usually not be included. Once a buyer has closed escrow on a property the assessor may appraise the property to determine the new base value as of the date of the change of ownership or completion of new construction. The Assessor then calculates the difference between the new base value and the existing base value. The result is the new Supplemental Assessment. The Assessor will send the new owner a "Notice of Supplemental Assessment and Impending Tax Bill." This reassessment usually results in an increase in property value. Your supplemental taxes will be calculated by the Auditor-Controller based on the change in value and one or possibly two supplemental tax bills will be created and mailed to you by the Tax Collector. However, in some instances the reassessment can result in a reduction in value, in which case a refund will be prepared by the Auditor-Controller and mailed to you. A reduction in value will not reduce the amount due on the existing annual tax bill. The annual tax bill must be paid in the amount originally billed. The new owner can be billed in a few weeks or it can take more than several months. The timing that the bill will be mailed to you depends upon the individual counties present workload. I hope this information was useful.= This information is deemed to be accurate and only for the use of this question. Contact your local tax accountant or tax attorney. Kari McCoy owns the Kari McCoy Group, Residential Real Estate, at Lyon Real Estate. Contact her at 916-933-5274 or sold@karimccoygroup.com. #00841588