Property Tax FAQs

You can open an installment account after the date on which the property has become tax defaulted (June 30) and within five years of that date (at which time your property becomes subject to the power of sale).

A payment plan may also be set up for secured escape assessments for prior fiscal years as well as unsecured escape assessments for prior fiscal years. Information on setting up a payment plan for these bill types appears on the back of the tax bill.

Supplemental taxes are eligible for the same property tax exemptions and assistance programs as your annual taxes. In addition to the homeowner's exemption, you can apply through the Office of the Assessor/Recorder for a number of other assessment exemptions (e.g., veteran's, church, and welfare) that result in savings. You must, however, file for all exemptions before the 30th day following the date of the notice from the Office of the Assessor/Recorder of your supplemental assessment. For further information, contact the Office of the Assessor/Recorder, Exemption Services at (415) 554-5596.

The State of California's Property Tax Postponement program was suspended effective February 20, 2009. Funding for the Homeowner and Renter Assistance (HRA) Program was removed from the state's 2008-2009 budget. Please select our Assistance Programs page for current information on these programs.

Yes. Delinquent supplemental taxes can be paid on an installment plan in the same manner as your annual property taxes. See Delinquent Property Tax for more information.

The same rules apply as for unpaid annual tax bills. If your supplemental tax bill is not paid by June 30, the property becomes tax defaulted (even if you have paid your annual secured property tax bill). If the second installment of supplemental tax becomes tax defaulted at 5 PM on June 30^th, that supplemental bill cannot cause the property to be declared tax defaulted until the end of the following fiscal year. At the end of the fifth year of delinquency the property becomes subject to the power of sale as described in our pamphlet on delinquent property taxes.

No. State law stipulates that this is not an acceptable reason for excusing penalties.

The date on which supplemental tax bills become delinquent varies depending upon when they are mailed by the Office of the Treasurer & Tax Collector. If the bill is mailed between July 1 and October 30, the taxes become delinquent at 5 p.m. on December 10 for the first installment and 5 p.m. on April 10 for the second installment (the same delinquency schedule as for annual tax bills mailed in November).

If the bill is mailed between November 1 and June 30, the delinquency dates - which are printed on the bill - are determined as follows: The first installment is delinquent at 5 p.m. on the last day of the month following the month the bill was mailed; the second installment is delinquent at 5 p.m. on the last day of the fourth month after the first installment delinquency date.

Penalties of 10% are added to any installment which is not paid on time, and an additional $45 charge is added to a late second installment.

Yes, It is possible to receive more than one supplemental tax bill, depending on when the ownership change or completion of new construction occurred and when the Office of the Assessor/Recorder recorded the new value on the tax roll.

Because property is assessed each January 1 for the upcoming fiscal year (July 1- June 30), you will receive one supplemental bill if the change in property value due to ownership change or new construction is recorded on the tax roll between June 1 and December 31; you will receive two supplemental bills if the change in property value is recorded on the tax roll between January 1 and May 31.

No. You are taxed only on the supplemental value for the portion of the current fiscal year remaining after you purchased the property or completed new construction. However, if the reassessment was not recorded by the Office of the Assessor/Recorder before January 1, you will receive an additional supplemental tax bill for the next fiscal year.

If you purchase and then sell property within a short period of time, the supplemental tax bill you receive should cover only those months during which you owned the property, and the new owner should receive a separate supplemental tax bill. Because of the large number of parcels and frequency of property changing hands in the City and County of San Francisco, there are often delays in placing new assessments on the roll. Be sure to check the dates used to prorate the bill to ensure that the period covered is the period during which you actually owned the property. If you receive an incorrect tax bill, contact the Office of the Assessor/Recorder at (415) 554-5596.

The supplemental tax bill provides the following information:

The owner (or new owner as of the date of ownership change).

The fiscal year for which the taxes are assessed.

The location and legal description of the property.

The old and the new assessed value and the difference (net supplemental assessment) upon which the tax is computed.

The type and amount of any exemptions (e.g., homeowner's).

The total amount of taxes due based upon the net increase in value.

The date of ownership change or completion of new construction. This date is used to prorate the tax for the period remaining in the current fiscal year for which the bill was issued.

The bill may be paid in two installments and provides payment stubs for each installment, which show the amount due and the date that the amount must be paid to avoid penalties for late payment.

No. Unlike the annual tax bill, lending agencies do not receive a copy of the supplemental tax bill. When you receive a supplemental tax bill, you must contact your lender to determine who will pay the bill.

Yes. The supplemental tax bill is sent in addition to the annual tax bill and both must be paid as specified on the bill. For information on the annual tax bill, see Understanding Property Tax.

Yes. You may contact the Office of the Assessor/Recorder to see if the assessed value can be reassessed. Additionally, you may contact the Assessment Appeals Board for the purpose of resolving valuation disagreements in connection with supplemental tax bills. Please note, there is a deadline for when applications to appeal must be filed, please check with the Assessment Appeals Board for further information.

If you choose to appeal your assessment, you must pay your tax installments in full by the appropriate deadlines; otherwise, you may incur penalties while the case is on appeal. If your appeal is granted, a refund will be issued to you.

The Office of the Assessor/Recorder first determines the new value of the property based on current market values. The Office of the Assessor/Recorder then calculates the difference between the new value (set at the time of purchase or completion of new construction) and the old value (set on January 1 of the previous fiscal year). The result is the supplemental assessment value. Once the new assessed value of your property has been determined, the Office of the Assessor/Recorder will send you a notification of the amount.

Example:

New value at date of purchase or completion of new construction $600,000

Assessed value for current fiscal year $400,000

Supplemental assessment value will be $200,000

This reassessment usually results in an increase in property value, in which case your supplemental taxes will be calculated based on the change in value, and one or two (sometimes three) supplemental tax bills will be created and mailed to you by the Office of the Treasurer & Tax Collector.

However, in some instances the reassessment results in a reduction in value, in which case a refund will be prepared and mailed to you. A reduction in value will not reduce the amount due on the annual tax bill. The annual tax bill must be paid in the amount originally billed by the deadline to avoid any penalties.

Typically, new construction is any substantial addition to real property (e.g., adding a new room, pool, or garage) or any substantial alteration that restores a building, room, or other improvement to the equivalent of new (e.g., completely renovating an outdated kitchen).

Most changes in ownership caused by the sale or transfer of property result in reassessment.

There are some limited exceptions. Please contact the Office of the Assessor/Recorder for details.

For further information or claim forms, please contact the Office of the Assessor/Recorder at (415) 554-5596.

If your first account defaults either because of your failure to make at least one installment payment between July 1 and April 10, or because of your failure to pay your current year's taxes in full by April 10, you may open another account. However, the second account may not be opened until July 1 of the following fiscal year. You may NEVER reopen an installment account in the same calendar year that the property becomes subject to the power of sale.

If you default a second time, you may open a third installment account. However, if you default a third time, no further installment accounts will be permitted, and your property will become subject to the power of sale the following June 30. In that case, your property will be sold at a public auction or acquired by a public agency if you do not pay the full redemption amount before the date on which the property is offered for sale or acquisition.

Each time you open an account, you have five years to pay the full redemption amount. However, it is to your advantage not to default on an installment account, since there is an additional penalty. When a second or third installment account is opened, the redemption amount is computed as though no previous payments had been made. This means you will be charged the 1-1/2% monthly penalty on the unpaid taxes as though none of those taxes had been paid. However, as soon as the first payment on the second or third account has been made, you will be given credit for any previous payments.

No. Your installment payments NEVER include your current year's taxes, which must be paid separately.

Under the installment plan you are required to make one payment each year for five years, in addition to paying each year's annual taxes. By each April 10 you must make one payment of 20% or more of the redemption amount, plus interest (which accrues at the rate of 1-1/2% per month on the unpaid balance once the account has been opened). If you fail to make any installment payment or fail to pay your current year's taxes or any supplemental taxes on or before April 10 of each year, then your account will default.

You can, however, pay the total unpaid balance plus accrued interest any time before the fifth and final payment is due.

To open an installment plan, you must:

1. Make an initial payment of at least 20% of the redemption amount and;
2. Pay your current year's taxes.

   If you open an installment account between July 1 and the following April 10, the current year's taxes and any supplemental taxes must be paid by April 10 or the account will default. To open an account between April 11 and June 30, the current year's taxes (plus any penalties and charges) must first be paid in full.

If you are unable to pay the full redemption amount (i.e., unpaid taxes for all delinquent years plus penalties and charges), you may open an installment plan of redemption, so long as your unpaid taxes have not been delinquent for more than five years from the date they became tax-defaulted. This plan allows you to make payments on your delinquent taxes over a five-year period beginning the date you open the installment account. There is an administrative charge of $50 for initiating an installment payment plan.