If you own a home in Los Angeles County, your annual secured property tax bill was prepared and mailed in October. Before you file it away, or set it aside for later, here is a plain-English look at what is actually in it and which dates really matter.
Image above: illustration, not a real property.
Two installments, two key dates
Your annual bill is split into two installments. The first is due November 1 and becomes delinquent at the close of business on December 10. The second is due February 1 and becomes delinquent at the close of business on April 10.
Read that carefully: a due date of November 1 does not mean you are late on November 2. You have until December 10 to get the first installment in. After the delinquency date passes, penalties apply, and the second installment can add costs on top of penalties.
What is actually inside the bill
Your annual secured bill bundles three things:
The General Tax Levy, the base tax tied to your property's assessed value.
Voted Indebtedness, voter-approved bonds and similar charges in your area.
Direct Assessments, charges for local services such as lighting, flood control, sewer, and landscaping districts.
That is why two similar homes in different San Gabriel Valley cities can carry noticeably different totals. The assessed value is only part of the story; the local charges layered on top vary by tax rate area.
Does your lender pay it for you?
Many homeowners have an impound account, sometimes called an escrow account, with their lender. You pay a portion of the annual tax bill with each mortgage payment, and the lender pays the bill when it comes due. If that is you, the annual bill is handled, but it is still worth opening the statement so you know what you are paying.
If you do not have an impound account, the bill is yours to pay directly. Not sure which one you are? Check your mortgage statement or ask your loan servicer. And a heads-up from LA County: state law makes paying the taxes your responsibility whether or not the bill ever reaches your mailbox.
The bill that surprises new homeowners: supplemental taxes
Bought a home this year? There is likely a second, separate bill coming. When a property changes ownership, the Assessor reassesses it, and the difference between the old assessed value and your new assessed value, generally your purchase price, shows up as a supplemental tax bill. It is prorated based on how many months are left in the fiscal year, which runs July 1 through June 30.
Two things catch buyers off guard:
It arrives separately, roughly six months after your purchase, mailed directly to you by the Treasurer and Tax Collector.
It is generally not paid by your impound account, even if your lender handles the annual bill. The check is on you.
One bright spot: if the county reassesses the property at a lower value, you receive a refund instead of a bill. You can estimate what a supplemental bill might look like with the LA County Assessor's online estimator before it arrives, so it never has to be a shock.
A little money back
If you own and occupy your home as your principal residence, you are eligible for the Homeowners' Exemption, which reduces your property tax by about $70 a year. New owners are typically sent an application about three to four months after the deed is recorded. It will not change your life, but it is free money for a form.
What I would do this week
Open the bill when it arrives, or look up your amount online with your Assessor's Identification Number.
Confirm whether your lender impounds your taxes, so you know who is paying the bill.
Put December 10 and April 10 on the calendar. Those are the delinquency dates that carry penalties.
Bought a home this year? Budget for a supplemental bill about six months out, separate from anything your lender collects.
Questions about the amount? The Treasurer and Tax Collector and the Assessor both have self-service tools and phone lines for exactly this.
Every tax situation is different, so treat this as a starting point and talk with your tax advisor or lender about your specific bill. And if understanding the true cost of owning a home has you thinking about your next move in the San Gabriel Valley, I am always happy to walk through the numbers with you.
Erika Baños-Soria, Broker Associate, Coldwell Banker Envision, DRE #01809655
