Are you planning to sell your Fallbrook home and wondering how property taxes will impact your timing and bottom line? You’re not alone. California’s rules can feel complex, especially when things like reassessment and supplemental bills show up after closing. In this guide, you’ll learn how San Diego County calculates property taxes, what happens when you sell, which deadlines matter, and the steps to take before you list. Let’s dive in.
How San Diego property taxes work
Proposition 13 at a glance
Under Proposition 13, your property’s assessed value is generally set at the price you paid when you bought. That becomes your base-year value. Each year, the assessed value can increase by up to 2% for inflation. Market value does not control your tax bill unless there is a change of ownership or new construction.
When you sell or complete new construction, the county reassesses the property to current full cash value. That new value establishes the buyer’s base-year going forward.
What makes up your tax bill
California limits the primary tax rate to 1% of your assessed value. Your total bill also includes voter-approved items such as bonds, special assessments, and any Mello-Roos or community facilities district charges. In San Diego County, many parcels carry additional assessments. Total effective rates often land above the base 1%, commonly in the 1.1% to 1.5% range. The exact rate is parcel specific and shown on your bill.
Assessed value vs. market value
Your assessed value is what the county uses to calculate taxes. It typically differs from what your home would sell for in today’s market. Assessed values change only by the annual cap, reassessment at transfer, new construction, or a temporary reduction if market value drops below assessed value under Proposition 8. If you believe your assessed value is above market value, you can contact the County Assessor to request a review.
When a sale triggers reassessment
Change of ownership starts a new base-year
A recorded transfer of ownership triggers reassessment to full cash value as of the transfer date. The process begins when the deed records and the information is sent to the Assessor. The buyer receives a new base-year value from that date.
Supplemental assessments explained
A supplemental assessment captures the difference between the new assessed value and the prior assessed value for the remainder of the current fiscal year. The tax year runs July 1 through June 30. The supplemental bill is separate from the regular secured bill and covers only the prorated period from the change date to June 30. If you sell on March 1 at a price above the prior assessed value, the assessor will bill the tax difference for March 1 through June 30.
Who gets the supplemental bill and when
Supplemental assessment notices can arrive weeks to several months after closing. The bill is mailed to the owner of record at the time the bill is issued, which is typically the buyer. Because of this lag, it is common for purchase contracts and escrow instructions to spell out who pays prorated supplemental taxes that relate to the period around closing.
Payment schedules and penalties
Regular secured roll deadlines
California counties, including San Diego, follow a standard calendar:
- First installment: billed November 1, due November 1, and delinquent after December 10.
- Second installment: billed February 1, due February 1, and delinquent after April 10.
If you pay through an impound account, your lender usually remits on your behalf, but you remain responsible for confirming payment.
Supplemental bill timing and due dates
Supplemental bills arrive after reassessment and have their own due dates printed on the bill. They are not tied to the regular November and February schedule. Read the billing notice carefully and pay by the deadline to avoid penalties.
Penalties and collections
Late payments trigger delinquency penalties and costs under county rules. If taxes remain unpaid, further collection actions can occur. For exact penalty amounts and current payment options, refer to the San Diego County Treasurer-Tax Collector’s published guidance.
Seller checklist for the next 6–18 months
Use this quick plan to stay ahead of taxes as you prepare to sell your Fallbrook home.
- Pull your latest tax info
- Download or request your current property tax statement. Confirm your assessed value, tax rate components, and any outstanding amounts.
- Estimate the likely reassessment gap
- If your sale price will be higher than your current assessed value, expect a supplemental assessment that reflects the difference from your closing date through June 30.
- Address supplemental taxes in escrow
- Include a supplemental tax proration clause in your contract or escrow instructions. Clarify how you and the buyer will share any prorated supplemental amounts if the bill arrives after closing.
- Align on proration method
- Confirm whether prorations are calculated on the fiscal year or calendar year. Make sure everyone agrees on the exact per-diem method and dates.
- Consider timing effects
- Closing earlier or later in the fiscal year changes the proration window. A sale date near June 30 shortens the supplemental period. The reassessment will occur regardless of timing, but knowing the window helps you plan.
- Review Prop 19 portability if you plan to buy again
- If you are age 55 or older, severely disabled, or a victim of a qualifying disaster, Proposition 19 may allow you to transfer your base-year value to a replacement residence. Rules and limits apply, so review county guidance early.
- Coordinate with your lender
- If you have an impound account, speak with your lender about payoff timing and escrow reconciliation so funds are correctly applied and any residual balance is returned to you.
- Verify special assessments
- Check for Mello-Roos or other parcel-level charges on your bill. These can affect buyer questions, prorations, and monthly payment estimates.
Strategy tips for Fallbrook sellers
Set clear expectations with buyers
Because supplemental bills can arrive after closing, align on how that bill will be handled. Be clear in writing about who is responsible for which portion. This reduces surprises and keeps your transaction smooth.
Use fiscal timing to your advantage
While the sale will trigger reassessment for the buyer, the period subject to a supplemental assessment runs only to June 30. If you expect a large gap between assessed and sale price, understanding where your closing date falls in the fiscal year helps you plan prorations and possible escrow holdbacks.
Prepare your documentation
Have your current tax bill, any prior supplemental notices, and a simple explanation of your current assessed value ready for buyers. Transparency builds trust and keeps negotiations focused on the home’s value rather than uncertainty around taxes.
Appealing or reviewing your assessment
When to contact the Assessor
If you believe your assessed value is above current market value, you can ask the Assessor for a review under Proposition 8. Temporary reductions can be granted when market conditions warrant them. This is separate from the buyer’s reassessment at sale.
Deadlines if you choose to appeal
Assessment appeals have strict time limits. For supplemental assessments, the filing period is typically 60 days from the mailing of the notice. For annual assessments, deadlines can be either 60 days from notice or by mid-September depending on the situation. Check the county’s current procedures and forms so you do not miss your window.
What this means for your sale
If you are selling in the next 6 to 18 months, assume your buyer will be reassessed at current market value and a supplemental bill will likely follow for the remainder of the fiscal year. You can smooth the process by documenting your current tax status, clarifying proration and supplemental responsibility in escrow, and aligning on payment timelines. Planning ahead prevents confusion and helps you focus on marketing, negotiations, and your next move.
Ready to sell with clarity and confidence? Connect with the local team that knows Fallbrook and North County inside and out. Reach out to Meeker Realty Group to prepare your timeline, pricing, and tax plan the right way.
FAQs
Who receives the supplemental tax bill after a Fallbrook home sale?
- The supplemental bill is mailed to the current owner of record at the time of billing, which is usually the buyer. Escrow instructions often specify how the prorated amount related to the sale will be handled.
How are property tax installments scheduled in San Diego County?
- The first installment is billed November 1 and becomes delinquent after December 10; the second is billed February 1 and becomes delinquent after April 10. Paying by the due date avoids penalties.
What is Proposition 13 and how does it affect my taxes?
- Proposition 13 sets your base-year assessed value at purchase and limits annual increases to a maximum of 2%. Reassessment occurs when ownership changes or new construction is completed.
What is a supplemental assessment and why might I see one after closing?
- A supplemental assessment reflects the difference between the new assessed value and the prior value for the period from your closing date to June 30. It is billed separately from the regular annual tax bill.
Can I transfer my taxable base to another home under Proposition 19?
- If you are age 55 or older, severely disabled, or a victim of a qualifying disaster, you may be eligible to transfer your base-year value to a replacement home, subject to rules and limits. Review current county guidance early in your move planning.
