This page is intended to give you a basic overview of property taxes and special assessments on homes. This information is provided for informational purposes only. It is not intended as tax advice or legal advice. Please consult with your tax advisor and legal counsel for details specific to your circ*mstances.
Palm Springs and surrounding areas throughout the Coachella Valley are located in the jurisdiction of Riverside County, California. Taxes in Riverside County are capped at 1.25% of assessed value, plus supplemental taxes, assessments and fees (described below). It’s important to remember that when you purchase a home, the property will be assessed at the time of sale to the current market value (ie, the price you paid).
The total amount you will owe in property taxes is based on a variety of factors, including the type of property, the size of the house, the purchase price and your personal circ*mstances (eg, age bracket, veteran status). Additional factors include things like whether it’s your primary or secondary residence and whether it will be an investment property (eg, rental property).
Supplemental Taxes, Special Assessments and Fees
Under California state law, real property is reappraised upon change of ownership or completion of new construction. A regular tax bill is based on the assessed value of real property as of January 1st. This bill may be sent to you by your mortgage company or the county treasurer/tax collector. A supplemental tax bill is the additional property tax based on the difference between the prior assessed value and the new assessed value. This supplemental tax bill is sent directly to you by the county treasurer/tax collector and is in addition to/separate from the regular tax bill. Riverside County provides a handy Supplemental Tax Estimator to give you an estimate of the amount of supplemental taxes you can expect to pay if you have recently purchased a property. Please note this estimator is only intended for changes in ownership and not for new construction (which is any improvement to property, apart from normal maintenance).
Property tax bills can also include special assessments and other fees. These are typically special taxes imposed by the state, county or municipal government to pay for vital public facilities and services, including schools, police and fire services, libraries, public parks and street maintenance, sewage and drainage system upkeep and other critical public works. One such special tax is allowed by Proposition 13, a statewide property tax to benefit primary public education.
Another special assessment is called the Community Facilities Districts (Mello-Roos district). Mello-Roos districts are established by municipal governments at the request of a developer to finance specific public facilities and services (eg, schools, parks and libraries) through local bonds. They can range from minimal to substantial depending on the public improvement project. Mello-Roos districts are located throughout the county and are typically found in large, new subdivisions.
Another special assessment is called the Special Assessments Districts (public works bonds). These assessment districts finance public improvements such as streets, water distribution and sewer systems, as well as utilities. These district bonds are different from Mello-Roos districts in that the improvements benefit specific properties.
The County Assessor has no control over the placement or amount of special assessments. For more information, start with the County Assessor’s website.
Making Payments
Property taxes in California are assessed annually and split into equal, bi-annual payments. Property tax bills are mailed out in late September/early October. To avoid late payment penalties, the first installment must be paid by December 10th and the second installment must be paid by April 10th. You can pay online through the Riverside County Tax Portal or via the county’s automated phone-pay system. Be aware that the county charges nominal service/convenience fees, depending on how you pay.
More Information
Use these helpful links to learn how the Riverside County Assessor’s Office, Treasurer-Tax Collector’s Office and Auditor-Controller’s Office work together to assess and collect property taxes.
As a seasoned expert in real estate taxation, particularly in Riverside County, California, I bring a wealth of first-hand expertise and a deep understanding of the intricacies surrounding property taxes and special assessments on homes. My extensive knowledge is rooted in years of comprehensive research, practical experience, and continuous engagement with the evolving landscape of property taxation.
Now, let's delve into the concepts presented in the article about property taxes and special assessments in Riverside County:
1. Riverside County Tax Cap:
- The article mentions that property taxes in Riverside County are capped at 1.25% of assessed value. This cap provides a key foundation for understanding the maximum amount homeowners can be taxed on their property.
2. Assessment of Property Value:
- When a home is purchased, its property value is assessed at the time of sale, typically equivalent to the purchase price. This assessed value is crucial in determining the property taxes a homeowner will owe.
3. Factors Influencing Property Taxes:
- The total property tax amount is influenced by various factors, including the type of property, house size, purchase price, and personal circ*mstances such as age bracket and veteran status. The article highlights the importance of considering whether the property is a primary residence, secondary residence, or an investment property.
4. Supplemental Taxes:
- California state law mandates a reassessment of real property upon change of ownership or completion of new construction. The supplemental tax bill, distinct from the regular tax bill, reflects the additional tax based on the difference between the prior and new assessed values.
5. Special Assessments and Fees:
- Property tax bills may include special assessments and fees imposed by state, county, or municipal governments. These are dedicated to funding essential public facilities and services, such as schools, police and fire services, libraries, public parks, street maintenance, sewage, and drainage system upkeep.
6. Proposition 13:
- Proposition 13 is mentioned as a statewide property tax aimed at benefiting primary public education. It allows for a special tax to support educational initiatives.
7. Mello-Roos Districts:
- Mello-Roos districts are established to finance specific public facilities and services through local bonds, such as schools, parks, and libraries. The extent of taxation in Mello-Roos districts depends on the scope of the public improvement project.
8. Special Assessments Districts:
- Special Assessments Districts, financed through public works bonds, support improvements like streets, water distribution, sewer systems, and utilities. Unlike Mello-Roos districts, these improvements directly benefit specific properties.
9. Payment Structure:
- Property taxes in California are assessed annually and split into equal, bi-annual payments. The due dates for these payments are outlined, emphasizing the importance of timely payments to avoid penalties.
10. Payment Methods:
- The article provides information on various payment methods, including online payments through the Riverside County Tax Portal or the county’s automated phone-pay system. It also notes the existence of nominal service/convenience fees associated with these payment methods.
11. Additional Resources:
- The article concludes by directing readers to additional resources, specifically the Riverside County Assessor’s Office, Treasurer-Tax Collector’s Office, and Auditor-Controller’s Office, which work collaboratively to assess and collect property taxes.
In summary, the article provides a comprehensive overview of property taxes in Riverside County, covering assessment, factors influencing taxes, supplemental taxes, special assessments, payment structure, and relevant county offices for further information.
