When a house is bought cheaper, does the property tax go down?

[HarborEastGuy]

Excellent info.. Thanks to all for educating me on the process..!!

[HelloMyNameIsJes]

The assesment is based on the final sale price. Taxes are generaly 1% but cities will add an additial point what ever (1.xx%) it all depends what community you live in.
Also, there is a one time supplemental tax (definition below) that you have to pay, which is usually around between $900 to $3,500 depending where you purchased the house. That is based on the difference the house was last sold to its present sale value.
The assessor will asses the property a bit high, but you can have an re-assesment done with recent sold comparables in the neighborhood.
In the sale you will be prorated on the property taxes for the months that you didn't occupy the property (before you owned or where physically in possesion of the property), tat times the difference will be credited to you in about 8 months or sooner.

If I'm wrong someone correct me.

"Supplemental Tax - An adjustment in real property valuation resulting from upward changes in assessed value due to changes in ownership or completion of new construction. A secured property supplemental tax bill retroactively taxes the supplemental assessment of a property on a pro-rata basis as a result of the assessor's reappraisal of property at its full cash value on the date that a change in ownership occurs or new construction is completed." referrence: California tax data

[HarborEastGuy]

>> "Supplemental Tax - An adjustment in real property valuation resulting from upward changes in
>> assessed value due to changes in ownership or completion of new construction. A secured property
>> supplemental tax bill retroactively taxes the supplemental assessment of a property on a pro-rata
>> basis as a result of the assessor's reappraisal of property at its full cash value on the date that a
>> change in ownership occurs or new construction is completed." referrence: California tax data



Wouldn't the supplemental tax be zero since the market value is going down??

[flo2900]

Originally Posted by Tom63376

>> "Supplemental Tax - An adjustment in real property valuation resulting from upward changes in
>> assessed value due to changes in ownership or completion of new construction. A secured property
>> supplemental tax bill retroactively taxes the supplemental assessment of a property on a pro-rata
>> basis as a result of the assessor's reappraisal of property at its full cash value on the date that a
>> change in ownership occurs or new construction is completed." referrence: California tax data



Wouldn't the supplemental tax be zero since the market value is going down??

they asess the property at time of sale....by the time they came up with the magic number (about 6 months) properties usually have depreciated in this market but they "still" go by the value at time of purchase. It could go in your advantage if properties would go up in value