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Practice Of Real Estate DisclosuresMello_roos_and_special_taxesEASY

In California, what is a 'supplemental property tax bill'?

Correct Answer

C) An additional tax bill resulting from a change in the property's assessed value due to a change of ownership or new construction

A supplemental property tax bill in California is issued when there is a change in assessed value due to a change of ownership or completion of new construction. It covers the difference between the old and new assessed values, prorated from the event date to the end of the fiscal year.

Answer Options
A
A tax bill issued to supplement the homeowner's insurance premium
B
A tax bill for properties that are exempt from Proposition 13
C
An additional tax bill resulting from a change in the property's assessed value due to a change of ownership or new construction
D
A federal tax bill issued by the IRS for properties with values exceeding $1 million

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Related Topics & Key Terms

Key Terms:

supplemental_taxdefinitionreassessmentchange_of_ownershipR_T_Code_75

Related Concepts

Environmental hazards disclosure involves informing buyers about environmental contamination or hazards affecting or potentially affecting a property, including underground storage tanks, contaminated soil, hazardous waste, and proximity to Superfund sites.

Flood zone disclosure requires informing buyers whether a property is located in a designated flood zone as mapped by FEMA. Properties in high-risk flood zones may require mandatory flood insurance.

HOA disclosure requires informing buyers about the existence, rules, fees, financial health, and restrictions of a homeowners association governing the property. This information helps buyers understand their obligations before purchase.

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