When I purchase property or complete construction during the fiscal year, will I be taxed on the supplemental value for the entire fiscal year?
You are taxed on the supplemental value for the remaining portion of the year, from the date you purchased the property or completed the new construction. However, if the event was after January 1, you will receive an additional supplemental tax bill for the following fiscal year, which will be for the entire year. Figure 1 illustrates the homeowner’s obligation to pay both supplemental and annual tax bills after purchasing property or completing new construction. (NOTE: The diagram assumes an increase in property value.
Related Questions
- When I purchase property or complete construction at some point during the fiscal year, will I be taxed on the supplemental value for the entire fiscal year?
- When I purchase property or complete construction during the fiscal year, will I be taxed on the supplemental value for the entire fiscal year?
- How were changes in property value due to sale of property or new construction taxed in the past?
