Buying a home is a complex financial transaction that requires multiple parties to execute and covers a range of costs, including a down payment, mortgage, closing costs, brokerage fees and multiple taxes.
While you may know how much home you can afford, taxes insert a variable on budgeting. It’ll take a little digging before you fully know the scope of the taxes you will be paying.
The amount of taxes due and when they are paid can be a little tricky, too.
Here’s a comprehensive overview of what to expect on your tax bill when you move to Placer County.
The state determines how much tax homeowners must pay. The tax system is based on state law that all property has an established base year value and it also restricts assessment increases to no more than 2 percent a year. The base year value stays in effect until ownership is changed or new construction is added.
Property taxes are typically linked to a homeowners’ mortgage account and a portion of the mortgage payment gets deposited into an impound account. This is then used to pay the county taxes, which are collected in two installments throughout the year.
How much will I pay?
Property taxes are assessed by the Placer County Tax Assessor. The office provides tax information on specific properties. In your search, you will be able access the home’s value, what taxes have been paid and which are due. The website will also allow you to see the tax bill on the property by entering the parcel number of the accessor’s ID.
Here’s another tax you may have to pay. This fee pays local government or special districts to finance public works projects. These funds are used to make bond payments for schools, roads, libraries, police and other public safety services.
A homeowner will pay Mello Roos until the bonds are paid off. The tax is included in annual property tax bill.
When you buy a home, the owner is obligated to disclose whether or not the home is subject to this special tax.
Supplemental Property Tax
As mentioned above, property taxes are assessed upon change of ownership and the supplemental property tax reflect the gap between the most recent assessed value and the previous one.
If the new value is higher than the existing amount, you will get a bill for the difference. New homeowners will receive a credit if the new amount is lower.
Timing is a factor as well and will dictate the prorated amount you will pay based on when you purchase your home.
Here is the specific breakdown on payments as outlined by placer.ca.gov.
- June 1 – December 31: You will receive one supplemental assessment prorated from your date of event to the following June 30.
- Jan 1 – May 31: You will receive two supplemental assessments. The first will be prorated from your date of event to the following June 30. The second will be for the entire subsequent assessment year from July 1 to June 30.
IheartPlacer.com is here to help you navigate the sometimes-confusing world of taxes when you buy a home. We have the resources and knowledge to help you understand exactly what each tax is about and how it can help you in the process of buying a home. Knowing how much you’ll owe in taxes is integral to establishing your family’s budget and negotiating with the current owner.
If you have any questions, do not hesitate to contact one of our Placer County ambassadors.