LA County Information

County of Los Angeles
Department of Consumer Affairs
New Consumer Laws 2006

DCA
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Supplemental Taxes

Sellers must tell buyers they might owe supplemental taxes (Business And Professions Code 11010; Civil Code Section 1102.6c)

When a property is sold, the County reassesses the property to the current market value. This may cause property taxes to be higher than the amount the seller used to pay. As a result, the amount of taxes paid by the buyer at the close of escrow may not cover the new tax assessed by the County.

This law requires sellers of residential properties of 1 to 4 units, or their agents, to tell the buyer that supplemental taxes may be owed after the buyer becomes the new owner. This will make buyers aware that they may have to pay a one-time supplemental tax bill.

Action:  DCA’s Real Estate Fraud Unit takes complaints against sellers or their agents who violate this law.

May be reprinted for non-commercial use if a credit line is included acknowledging the County of Los Angeles Department of Consumer Affairs.

For more information:
County of Los Angeles Department of Consumer Affairs
B-96 Kenneth Hahn Hall of Administration
500 W. Temple Street * Los Angeles, CA 90012-2706
Telephone (800) 593-8222 (within the County) * (213) 974-1452
web site: dca.lacounty.gov