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NEW HOMEOWNERSPROPERTY TAX GUIDEDan McAllisterSAN DIEGO COUNTY TREASURER-TAX COLLECTOR
TABLE OF CONTENTSHow Your Property Taxes Are Allocated2How the Property Tax System Works3How Property Taxes are Calculated4My Property Tax Bill5The Annual Secured Property Tax Bill6-7Supplemental Tax Bills8New Homeowner Checklist9Q & A About Your Property TaxesProperty Tax CalendarHomeowners Property Tax Guide10-1213
A LETTER FROM YOUR TAX COLLECTORDear Homeowner:Congratulations on the purchase of your new home!Welcome to the community and thank you for investing in SanDiego County.The opportunity to own property is an exciting experience, butwith all real estate purchases, there are many important things youshould be well-informed on and be made aware of. Inside, you willfind information to answer important questions you may have as anew property taxpayer, such as: When will I receive my first tax bill? How is my property tax bill calculated? When is my bill due? Where does my money go?It is my hope that you become familiar with these importanttopics, as they will empower you as a new homeowner.Once again, welcome and congratulations!Sincerely,Dan McAllisterSan Diego CountyTreasurer-Tax CollectorSan Diego County Treasurer-Tax Collector - www.sdttc.com 1
HOW YOUR PROPERTY TAXES ARE ALLOCATEDYOUR PROPERTY TAXES HELP STRENGTHEN THE COMMUNITY!Paying your property taxes promptly is an integral step insupporting your local schools, libraries, and communities.LAST FISCAL YEAR:2017-20181% PROPERTY TAX TOTAL REVENUE ALLOCATION: 4,959,528,86811.3%Redevelopment PropertyTax Trust Fund (RPTTF)*7.9%County In Lieu ofVehicle License Fee(VLF)13.2%County3.3%Special Districts12.7%Cities5.3%Cities In Leiu ofVehicle LicenseFee (VLF)0.7%Library45.6%SchoolsThis chart was calculated by the County of San Diego Auditor and Controller’s office. For more information on how your 1% PropertyTaxes are allocated, please contact Property Tax Services at 858.694.2901 or visit: nds are distributed to Redevelopment Successor Agencies, County, Cities, Schools, Special Districts, and the State Controller’sOffice for administrative cost.2 Homeowners Property Tax Guide
HOW THE PROPERTY TAX SYSTEM WORKSTHE CITIZENSOF SAN DIEGOASSESSORCongratulationson the purchase ofyour new home!The Treasurer-TaxCollector mails thetax bills and collectsthe property taxpayments.TREASURER TAX COLLECTORAfter thedeed isrecorded,the Assessordetermines the newassessed value.The Auditor applies the taxrates to the new assessedvalue to determine theamount of propertytax owed.AUDITORSan Diego County Treasurer-Tax Collector - www.sdttc.com 3
HOW PROPERTY TAXES ARE CALCULATED1% VALUE VOTER APPROVED BONDS, FIXED CHARGE SPECIAL ASSESSMENTS,(INCLUDING MELLO-ROOS) PROPERTY TAXES 1% BASE TAXTHE BUILDING BLOCKS OFPROPERTY TAXES1% of the full cash value of the property. VOTER APPROVED BONDSAny bond which is approved by the voters in a particularjurisdiction, i.e. bonds approved for school and water districts. FIXED CHARGE SPECIAL ASSESSMENTSLevies on real property to pay for improvements orservices, i.e. mosquito surveillance or vector disease control.Mello-Roos is a type of Fixed Charge Special Assessment. MELLO-ROOSA Mello-Roos District is an area where a special tax is imposed onreal property within a Community Facility District (CFD). The CFDsells bonds in order to finance public improvements and servicessuch as streets, water, sewage, drainage, infrastructure, schools,parks, police, and fire protection. The special tax you pay is used tomake payments of principal and interest on bonds, and is collectedas part of your Annual Secured property tax bill.ESTIMATED ANNUAL TAXExampleAssessed Value 300,000.00Ms. Jones buys a homefor 300,000. She wantsto estimate her annualproperty taxes and anyother charges that maybe included on her bill.1% Tax on Net Value 3,000.00.12222% Voter Approved Bonds 366.66Fixed Charge Special Assessments(may include Mello-Roos) 725.004 Homeowners Property Tax GuideEstimated Annual Tax 4,091.66
MY PROPERTY TAX BILL“Secured” property is any property that can’t be moved like homes or land.Proposition 13 limits the tax rate to 1% of a property’s current assessed value, plus any voter-approved bondsand assessments. The proposition also states that property values can’t increase more than 2% annually,based on the California Consumer Price Index. However, property is reassessed whenever it changes ownersor undergoes new construction.WHEN ARE THEY DUE?The first installment of secured property tax is due onNovember 1st and becomes delinquent after December10th. The second installment is due February 1st andbecomes delinquent after April 10th. If the delinquentdate falls on a weekend or holiday, you have until theclose of the next business day to pay your tax bill.The Annual Secured tax bills are mailed beginning inOctober of each year.Please note that failure to receive a bill will not preventpenalties from being imposed on a late payment. Ifyou have not received your tax bill by November1st, please contact the Treasurer - Tax Collector at877.829.4732.ONCE I PURCHASE MY NEW HOME.Now that you have purchased your new property,you should be aware of your property tax obligationonce escrow has closed. Escrow may pay some taxesowed. Talk to your Escrow Officer to determine whattaxes you may be obligated to pay. For example: Ifescrow pays the first installment of the current yeartax bill, you may be responsible for payment of thesecond installment.San Diego County Treasurer-Tax Collector - www.sdttc.com 5
THE ANNUAL SECURED PROPERTY TAX BILLTOP SECTIONThe Treasurer- Tax Collectormails the AnnualSecured propertytax bill tohomeowners eachyear in October.If you have notreceived a tax billor an informationcopy for eachparcel of propertyin which you havean interest byNovember 1st,please contact theTreasurer - TaxCollector at:877.829.4732.IMPOUND INFORMATIONIf the enclosed bill contains thenotation “Copy of Bill -- SeeEnclosed Insert,” this meansthat a bank, mortgage company or other agent on yourbehalf has requested the taxbill information. If you are unsure if a lender or other payingagent is paying your bill, pleasecontact your lender. The Treasurer - Tax Collector does notmaintain a database of this information.6 Homeowners Property Tax GuideBREAKDOWN OF YOUR TAXAMOUNTA breakdown of your taxesis provided in boxes 13 and14. It will reflect the 1% tax onthe net taxable value, voterapproved bonds and FixedCharge Special Assessments(including Mello-Roos) for theparcel.*See “How Property Taxes areCalculated.”IMPORTANT PHONE NUMBERSIf you have questions concerningthe Fixed Charge Special Assessments, call the telephone numberprovided next to the assessmentlisted. The Tax Collector is notable to provide any informationon the special assessments.
THE ANNUAL SECURED PROPERTY TAX BILLBOTTOM SECTIONTax Bills for NewCondominiums andTownhomesIf you have anewly constructedor convertedcondominium ortown house, theproperty tax billmay either be forthe parent parcelor for the individualparcel. Please referto your escrowinstructions to seehow taxes werepaid. If you haveany questionsplease contactthe Treasurer-TaxCollector at:877.829.4732.DUE DATES TO REMEMBERThe first installment is dueon November 1st. The second installment is due onFebruary 1st.PROPERTY TAX DELINQUENCYDATESINSTALLMENTS ANDAMOUNT DUEThe first installment becomes delinquent if not paid by December10th. If the delinquent date fallson the weekend or holiday, thedelinquency date is the next business day. The second installmentbecomes delinquent if not paidby April 10th. Payments receivedafter the delinquent date are assessed a 10% penalty, plus a onetime 10.00 cost on second installment payments.(Indicated by red circles)San Diego County Treasurer-Tax Collector - www.sdttc.com 7
SUPPLEMENTAL TAX BILLSAnytime a property is sold to a new owner or new construction is completed, statelaw says it must be reassessed by the County. That reassessment will most likelychange the assessed value of your property.When your assessed value changes, the County must recalculate your propertytaxes, and when those change, we will send you a supplemental tax bill.WHY IS A SUPPLEMENTAL TAX BILL ISSUED?Annual Secured tax bills are based on the taxable value asof January 1st (Prior Taxable Value.) A Supplemental tax billwill be generated based on the difference between the NewTaxable Value and the Prior Taxable Value.Supplemental tax bills are generally mailed six to twelvemonths after a change of ownership or completion of newconstruction.EXAMPLE:If the property is purchased on September 15 with a newmarket value of 450,000, and it has a prior assessed valueof 350,000, this will result in a supplemental assessmentfor the difference ( 100,000) prorated for the remainingmonths in the fiscal year (nine months from October throughJune):New Assessed Value 450,000Prior Assessed Value- 350,000Supplemental Taxable ValueRemaining Months in Fiscal YearProrated Taxable Value8 Homeowners Property Tax Guide 100,000x 9/12 75,000Approximate Tax Ratex 1%Supplemental Tax Bill 750
NEW HOMEOWNER CHECKLIST MAKE SURE YOUR MAILING ADDRESS IS CURRENT AND CORRECT WITH THEASSESSOR’S OFFICEThe Tax Collector is required to mail tax bills to theaddress provided on the official tax roll. In order toensure that you receive your tax bills, you shouldnotify the Assessor of a new mailing address as soonas possible. Change of address forms and forwardingrequests submitted to the U.S. Postal Service DO NOTchange the mailing address on the tax roll.ADDRESS CHANGE?Please contact the Assessor’s Office at:619.531.55561600 Pacific Highway, Room 103San Diego, CA 92101-2480You can also submit change of address requests onlineby going to:https://arcc.sdcounty.ca.gov/pages/coa.aspx www.sdarcc.comCONFIRM ANY IMPOUND / ESCROW ACCOUNTS WITH YOUR LENDERImpound / Escrow accounts are funds held by thelender or mortgage company to pay for taxes andinsurance. These funds are collected from the propertyowners as part of the monthly mortgage payments.The lender or mortgage company generally pays theproperty taxes to the Tax Collector by December 10thand April 10th./ Escrow accounts should contact their lender ormortgage company for more information. Ultimately,the property owner is responsible for ensuring thatthe property taxes are paid in a timely manner.Important note: Supplemental tax bills are not sentto the lender or mortgage company, they are sentto the new current owner. It is the property owner’sTaxpayers with Impound / Escrow Accounts receive responsibility to pay all supplemental bills.an “information” copy of the tax bill with the notation“Copy of Bill -- See Enclosed Insert.” Taxpayers whohave paid off their loans or cancelled their Impound CHECK FOR ANY SUPPLEMENTAL TAX BILLSMAKE A NOTE OF THE DUE DATES AND DELINQUENT DATES FOR ALL TAX BILLSAND INSTALLMENTSSan Diego County Treasurer-Tax Collector - www.sdttc.com 9
Q&A ABOUT YOUR PROPERTY TAXESQ: When will I receive my property tax bill?A: The Treasurer-Tax Collector begins mailing the Annual Secured tax bill each year in October. If youhave not received your tax bill by November 1st,please contact the Treasurer-Tax Collector. If youwould like to pay your installments online visit:Q: When is it due?A: Annual Secured tax bill: First installment is due November 1st andbecomes delinquent after December 10th Second installment is due by February 1stand becomes delinquent after April 10th Late penalties attach by operationof law - paying on time will help youavoid penalties!www.sdttc.comQ: What is property tax?A: Property tax is an ad valorem (value based) tax thatan owner of real estate or other property pays onthe value of the property being taxed. The taxingauthority requires and/or performs an appraisal ofthe monetary value of the property, and tax is assessed in proportion to that value.Q: How does Proposition 13 affect me?A: Under State law (Proposition 13, June 1978), realproperty is reappraised only when a change-inownership occurs, or upon completion of new construction. Except for these two instances, propertyassessments cannot be increased by more than 2%annually, based on the California Consumer Price Index.10 Homeowners Property Tax GuideDefaulted taxes: Penalties increase monthly!Q: After the purchase of a new home, who will informme of property tax responsibilities?A: California law requires that you be responsible forthe timely payment of taxes on your property. Tofind out what taxes are due and owing visit:www.sdttc.comQ: What if there are prior year delinquent taxes owingon my new home?A: Current and prior year taxes should be identifiedduring the escrow process. The escrow agent willbe responsible for determining how much of theproperty tax the buyer and seller will pay. If prioryear taxes are not paid during the escrow process,they will remain a lien on the property and becomethe responsibility of the new owner.
Q&A ABOUT YOUR PROPERTY TAXESQ: What is an impound account?A: An impound account (also called a reserve or es-Q: Do I have the right to appeal the assessed value?A: Yes. Appeals of assessed value must be filed withcrow account) is a special account set up by a lender to collect money from the borrower to pay futureproperty tax and insurance bills. Generally, a lendercan require an impound account on a mortgage ifthe loan amount is for 90 percent or more of thepurchase price.the Clerk of the Assessment Appeals Board (notthe Assessor) within the time period provided inthe information accompanying the bill you receive.The Assessment Appeals Board acts under the direct authority of the Board of Supervisors and itsfunction is to independently resolve valuation disputes between Assessors and property owners.For assessment appeal forms and information, visitthe Clerk of the Board of Supervisor’s website atwww.sandiegocounty.gov or call their office at619.531.5777Q: What are my Mello-Roos taxes paying for?A: Your taxes may be paying for both services and facilities. The services may be financed only to the extent of new growth. Services include: police and fireprotection, ambulance and paramedics, recreation,the operation and maintenance of parks, parkwaysand open space, library services, museums, culturalfacilities, and, flood and storm protection servicesfor the removal of any threatening, hazardous substance.Q: What is Supplemental tax?A: The Assessor is required to reappraise propertyupon a change -in- ownership or completion of newconstruction. A supplemental tax reflects the difference between the New Taxable Value and the PriorTaxable Value. The supplemental assessment is prorated based on the number of months remaining inthe fiscal year ending June 30. A Supplemental taxbill is in addition to the Annual Secured tax bill andis not sent to your mortgage company.Q: Do I need to pay the tax bill while appealing or talking with the Assessor about a reduction in value?A: Yes. To avoid penalties, liens and/or enforced collections, all taxes should be paid prior to the delinquentdate. If the tax is subsequently reduced, a refund willbe issued.Q: What if I fail to pay my property taxes by the deadline?A: Failure to pay each installment by the delinquentdates results in a 10% penalty immediately following the delinquent dates, plus a 10 charge added tothe 2nd installment. If payment is not received for adelinquent first and/or second installment by June30th, the property becomes tax-defaulted and willbegin to accrue additional penalties at a rate of 18%per year (1.5% per month) plus a 33 redemption feewhen the bill is paid.San Diego County Treasurer-Tax Collector - www.sdttc.com 11
Q&A ABOUT YOUR PROPERTY TAXESQ: What does “tax-defaulted” mean?A: It means that there are prior year unpaid taxes.Q: What happens if I don’t pay my property taxes?A: Your property becomes subject to sale five years after the first year of nonpayment or three years insome cases.Don’t panic! Prior to the end of the fifth year of default, we have options available for you to bring yourtaxes current.Q: If I purchased my property after the annual bills aremailed out in late September, will I receive a bill inmy name?A: While changes in ownership may result in a “NewOwner” bill being sent to you during the fiscal yearyou purchased your property, it is not required bylaw. It is your responsibility to pay your taxes whenthey are due and to request a copy of the bill if youhave not received one.12 Homeowners Property Tax Guide
PROPERTY TAX CALENDAROCT. 1STAPR. 10THAnnual Secured tax bill mailing begins.NOV. 1STMAY 10THFIRST INSTALLMENT DUESecured Property Tax dueTreasurer-Tax Collector mails a remindernotice of any unpaid, secured taxesDEC. 10THJUNE 30THFIRST INSTALLMENT DELINQUENT DATELast day to pay first installment withoutpenalty (A 10% penalty attachesthereafter)FEB. 1STSECOND INSTALLMENT DUESecured Property Tax dueSECOND INSTALLMENTDELINQUENT DATELast day to pay second installmentwithout penalty (A 10% penalty and a 10.00 cost attaches thereafter)Last day to pay current taxes andpenalties prior to defaultJULY 1STDelinquent secured accounts aretransferred to the defaulted tax roll andan additional 18% annual interest charge(1.5% per month) is applied to the baseamount, plus a 15.00 redemption feeSan Diego County Treasurer-Tax Collector - www.sdttc.com 13
DAN MCALLISTERSAN DIEGO COUNTY TREASURER-TAX COLLECTOR1600 PACIFIC HIGHWAY, ROOM 112SAN DIEGO, CALIFORNIA 92101www.sdttc.com 2018 San Diego County Treasurer-Tax Collector
San Diego County Treasurer-Tax Collector - www.sdttc.com 3 Congratulations on the purchase of your new home! After the deed is recorded, the Assessor determines the new assessed value. The Auditor applies the tax rates to the new assessed value to determine the amount of property tax owed. The Treasurer-Tax Collector mails the tax bills and .
