Investor · Los Angeles, CA · Member since 2015 · 9 posts · 4 votes
This is my first flip property so I've never had to deal with this before. I purchased the house in June 2016, for ~$250k, refurbished it and resold it December 2016, for ~$350k. Property taxes were paid through escrow for both purchase and resale however, the property tax had only ever been calculated from Original assessed Value (the value before my purchase) ~$150k. After I resold the home I received a Supplemental Property Tax bill using the price I paid for the house in June (~$250k) as the new assessed value. They want me to pay ~$1000 for the increased assessed value, half at the end of Jan 2017 and the other half in May 2017.
Is this Supplemental Prop Tax my responsibility? Both payments? Is it something that should be prorated for the time I owned the house 6/2016 through 12/2016, not the entire year?
I'd love some advice from people that have had to deal with issue. The property is in Lancaster, CA, not sure if that matters.
Las Vegas, NV · Member since 2016 · 32 posts · 2 votes
9y
Hey Matt,
Let me start off by saying I'm not an expert on this matter and I'm kind of surprised that no one has replied yet. I just recently purchased a property in the same area so here is my 2 cents on the matter....
The new tax rate should be recalculated at the newly assessed value of ~$250k and any tax bills from the time you closed escrow on the initial purchase until the close of escrow on the final sale would be your responsibility. Anything from December 2016 on would be the responsibility of the new home owner. I would check your tax bill to verify what period of time the $1000 increase reflects. I know when I purchased my property, the old owners paid a prorated tax bill for their time of occupancy during that calendar year (2016). I'm almost positive that this amount was paid at the close of escrow.
Again, I'm no mortgage broker or escrow officer, I'm just speaking from my recent experience. I would suggest checking the start/end dates of your supplemental tax bill and if it is still unclear I'd contact the escrow company and ask them to explain it thoroughly.
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
9y
If those adjustments are for the time you owned it, yes it is all yours. If part of that is for the period after you sold it, then it would be prorated.