Supplemental tax bill
An extra property tax bill sent to a new buyer in states where the assessed value resets on sale. Comes after closing and isn't in the escrow account, so buyers should plan for it.
Your Room opens on going under contract and closing, with the offer and everything before it already ticked.
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See how it worksWhere this comes up: closing
Part 1 of 4
Why a seller cares
In states where the assessment resets on sale, the buyer gets an extra bill after closing for the difference. It is the buyer's, and a seller who mentions it avoids a confused call two months later.
Part 2 of 4
A simple example
Your California home was assessed at $250,000 and sells for $600,000. The buyer receives a supplemental bill for the difference, prorated, a few months after closing.
| Whose bill | What it covers |
|---|---|
| The buyer's | The reset from the old assessment to the sale price |
| Not the seller's | Your taxes were prorated on the old assessment at closing |
| Not in the buyer's escrow | It arrives separately, which is the surprise |
The supplemental bill belongs to the buyer and arrives after everyone thinks the taxes were settled.
Part 3 of 4
What people get wrong
That it is a mistake in the proration. It is a second bill for a second assessment, and it was always coming.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
In your Room, this word explains itself where it appears.
Your Room defines supplemental tax bill in the step you meet it in, beside the document or the date it belongs to. Free to set up, with an agent or on your own.
Organize my saleFree to set up. Pay once when you list: $89 or $189. 7-day refund.