Taxes

Escrow, Title, Taxes and Closing Costs
Taxes :
Tax Prorations
Annual Property Tax Bills are Collected in Two Installments
1st Installment

July thru December Due: November 1st Late: December 10th

 2nd Installment

January thru June Due: February 1st Laie: April 10th
Buyer Seller
If You Close… Buyer Will Owe If Taxes ARe Current… If You Close… Seller Will Owe
Jan 1 6 month, of 2nd Install Jan 1 6 month, of 1st Install.
Feb l 5 month, of 2nd Install. Feb 1 1 month Of 2nd Install.
Mar 1 4 months of 2nd Install. Mar l 2 month, of 2nd Install.
Apr l 3 months of 2nd install. Aprl , month, of 2nd Install.
May l 2 months, of 2nd Install. May 1 4 months, of 2nd Install.
Junl 1 month of 2nd Install. Junl 5 months of 2nd Install.
Jul 1 6 months of 1st Install. Jul 1 6 month, or2nd Install.
Aug l 5 month, of 1st Install. Aug 1 1 month of 1st Install.
Sept l of 1st Install. Sept 1 . 2 month, of 1st Install.
Oct 1 3 months, of 1st, Install. Oct 1 3 month, of 1st Install.
Nov l of 1st Install. Nov 1 4 month, of 1st Install.
Dec 1 1 month of 1st Install. .Decl 5 months of 1st Install.

Lender Required Prepaid Impounds
Month Recorded First Payment Due Estimated Tax Reserve Status of taxes
January March 1 5 months 1st Inst. Paid
February April 1 1 month Both inst. Paid
March May 1 I month Both Inst. Paid
April Juntl 2 month, Both Inst. Paid
May July 1 3 months Both Inst. Paid
June August 1 4 month, Both Inst. Paid
July September 1 5 months Paid thru Jun 30
August October 1 6 mono,, Paid thru Jun 30
September November 1 7 months Paid thru Jun 30
October December 1 6 months 2mo if 1st paid
November January 1 3 months 1st Inst. Paid
December February 1 4 months 1st Inst. Paid
Real Property Tax dates
MARCH 1 -ASSESSMENT DATE
Taxes become a lien at 12:01 a.m. Not yet due and payable for the Fiscal Tax Year starting July 1. Thereafter, title evi­dence must show taxes as a lien for the coming Fiscal Tax Year.
APRIL 15- LAST DAY TO FILE FOR 100% VETERANS OR HOMEOWNERS EXEMPTION.
To be eligible for applicable exemptions you must own and occupy property on March 1.
JULY 1 – CURRENT FISCAL TAX YEAR BEGINS. NOVEMBER 1-FIRST INSTALLMENT DUE.
(First installment – July 1 to December 31)
DECEMBER 1 – LAST DAY TO FILE FOR 80% VETER­ANS OR HOMEOWNERS EXEMPTION. DECEMBER 10 -FIRST INSTALLMENT BECOMES DELINQUENT AT 5 PM.
10% penalty added to taxes due. If December 10 falls on a weekend or holiday, taxes are not delinquent until 5 p.m. the next business day.
JANUARY 1 – CALENDAR YEAR BEGINS.
FEBRUARY 1 – SECOND INSTALLMENT DUE.
(Second installment – January 1 to June 30)
APRIL 10 -2ND INSTALLMENT BECOMES DELINQUENT AT 5 PM.
10% penalty plus $10 administrative charge attaches. If April 10 falls on a weekend or holiday, taxes are not delinquent until 5 p.m. the next business day.
JUNE 30 – PROPERTY TAX MAY BECOME DEFAULTED.
If you fail to pay either or both installments by 5 p.m., prop­erty tax becomes defaulted and additional costs and penal­ties accrue. If June 30 falls on a weekend or holiday, taxes must be paid by 5 p.m. of the preceding business day.
REMINDER – PROPERTY MAY BE SOLD AT PUBLIC AUCTION AFTER 5 YEARS OF DELINQUENCY. HOW PROPERTY TAXES ARE DETERMINED.
Property taxes are governed by California State law and collected by the county. The County Assessor must first assess the value of your property to determine the amount of property tax.
Generally, the assessed value is the cash or market value at
the time of purchase. This value increases not more than
2% per year until the property is sold or new construction is
completed.
The Auditor-Controller applies the appropriate tax rates, which include the general tax levy, locally voted special taxes, and any city or district direct assessments. The Tax Collector prepares property tax bills based on the Auditor-Controller’s calculations, distributes the bills, and then collects the taxes.
CAN YOU DISAGREE WITH THE AMOUNT?
You may apply to the Assessor to see if that office will change the valuation.
Additionally, Appeals Boards have been established for the purpose of resolving valuation problems. Appeals on regu­lar assessments may be filed between July 2 and Septem­ber 15. Appeals on corrected assessments, escaped as­sessments (assessments that did not take place when they should have), or supplemental assessments must be filed no later than 60 days from the mailing date of the corrected, escaped or supplemental tax bill.
FILE AN APPEAL BUT REMEMBER TO PAY THE TAX.
It you choose to appeal, still pay your tax installments in full by the appropriate deadlines or you may incur penalties. If your appeal is granted, a refund will be issued to you.
DID YOU RECENTLY PURCHASE PROPERTY?
Although escrow prorates taxes and gives appropriate credit between buyer and seller, the actual taxes may not have been paid and you are responsible for any unpaid taxes at the close of escrow.

Read your escrow papers and/or title report to determine if any portion of the annual taxes were paid by the previous owner before the close of escrow.
The Tax Collector will not send a bill for the remainder of the year in which you acquired the property unless requested. If any taxes remain unpaid, call the Tax Collector and re­quest a bill. When you call, give the Assessor’s identification Number.