TAX CALENDAR

THE TAX YEAR:  The tax year (or fiscal year) straddles the calendar year, and runs from July 1 of one calendar year through June 30 for the following calendar year.  The first half of the tax year runs from July 1 to, but not including, January 1 of the next year.  The second half of the tax year runs January 1 to, but not including July 1.

So, for example, the First Half tax period for 2006-2007 (a tax year is always referred to by two calendar years) runs from July 1, 2006 through December 31, 2006 (or to, but not including January 1, 2007).  The Second Half tax period for 2006-2007 runs from January 1, 2007 through June 30, 2007 (or to, but not including July 1, 2007).

Taxes are paid in two halves, but the Tax Bill for the WHOLE TAX YEAR is issued sometime in the month of October IN THE NAME OF, AND AT THE TAX BASIS OF, WHOEVER OWNED THE PROPERTY IN JANUARY OF THAT CALENDAR YEAR.

The First Half Taxes are DUE November 1, and DELINQUENT December 10.

The Second Half Taxes are DUE  February 1 and DELINQUENT April 10.

SUPPLEMENTAL TAXES:  Each year a Real Estate Owner’s Property Taxes are typically raised a small amount, but under California law, the Tax Assessor can only raise property taxes according to the market value of the property under certain circumstances as set down in the tax code.  Therefore, when the circumstances under which property is transferred allow it (usually a sale), the Tax Assessor typically raises the taxes for the new owner by calculating the new tax based on the sales price.  Usually, however, since escrows close continually throughout the year,  this reassessment happens at some point  in the year, and usually “off cycle” in comparison to the usual time at which properties are reassessed and the tax bills are issued.  Therefore, the Tax Assessor issues a Supplemental Tax Bill for the difference between the old tax amount, and the new tax amount.  Please note that the due dates and delinquent dates for the Supplemental Tax Bill will most probably be different than the standard dates for the regular Tax bill.