Real Estate Updates and Information
 
I. SUPPLEMENTAL TAX BILLS:

The County Tax Collector has been receiving a high volume of calls regarding

buyers who have recently purchased property and are now receiving their tax bills.

A new property owner may receive as many as 3 documents in the mail--depending

upon when they actually closed escrow during the fiscal tax year. Others who

purchase in the second half of the tax year will get only two documents.

Everyone will receive a  SECURED TAX BILL. This is really the prior owner's bill,

but with proposition 13, upon close of escrow, the property is reassessed at

1% of the purchase price plus local assessments--and this is when the prorations

for supplemental taxes occur. To further confuse our new owners, the County

must calculate a proration from close of escrow in each 6-month installment period.

The tax years begin on July 1 of one year and overlap to June 30 of the following

year, i.e., July 1, 2005 to June 30, 2006 in two 6-month installments.

If the property is purchased in the second installment period, there will only

be two tax bills--the Secured or "old" tax bill and one supplemental proration.

But, if the property is purchased at the beginning of the year, which is in the

second installment period, a new owner will receive 3 bills: a Secured or "old"

bill, a supplemental bill for the prorations in the first installment period,

and one for the prorations in the second installment period. For further information,

go to the County Tax Collector's web site: <http://www.santa-cruzcountyca.us/ttc/>.

Brain Twister? Buy the property in the first installment period of the tax

year and receive only one supplemental bill!