Have you ever opened a property tax bill and felt unsure what you were really paying for? If you are buying or selling in Delhi, you are not alone. California’s rules can be confusing, and the timing of reassessments and supplemental bills often catches people off guard. This guide breaks it all down in plain language so you can plan your budget, avoid surprises at closing, and make confident decisions. Let’s dive in.
How California property taxes work
Prop 13 basics
Under Proposition 13, your property’s assessed value is usually set at the price you paid when you bought it. That becomes your “base year value.” Each year after that, the assessor can raise this value by at most 2 percent for inflation. A sale or qualifying new construction triggers a reassessment to current market value, which resets your base.
The core tax rate is 1 percent of assessed value. Local charges for schools, cities, special districts, or bonds are added on top of that. The total rate varies by parcel, so two homes on the same street can have slightly different totals.
What Prop 19 changed
Proposition 19 changed how some homeowners can transfer a lower tax base to a new home. If you are 55 or older, have a qualifying disability, or are a victim of a natural disaster, you may be able to move and take some or all of your lower assessed value with you, subject to rules and deadlines. Prop 19 also narrowed many parent-to-child exclusions. If you think you may qualify, plan early and file the required claims with the county.
What triggers reassessment in Delhi
Supplemental tax bills explained
When a sale closes or there is new construction, the county reassesses the property. The assessor compares the prior assessed value to the new assessed value. The difference is the supplemental assessment. A supplemental tax bill is then issued for the part of the fiscal year after your purchase date. It is separate from your regular bill and often arrives weeks or months after closing.
Here is the general math at a high level:
- Supplemental amount equals the value difference times the total tax rate.
- The bill is prorated only for the period from your purchase date to June 30.
Because this bill reflects only a partial year, it is usually less than a full-year bill, but it can still be a meaningful number if your purchase price is much higher than the seller’s old assessed value.
Who pays the supplemental bill
The supplemental bill is addressed to the current owner of record at the time the county updates its rolls. That is typically the buyer. Your purchase contract or escrow instructions can say otherwise, such as a seller credit, an escrow holdback, or another arrangement. If your agreement is silent, expect to receive the bill as the new owner.
Annual bills and due dates
Regular secured tax bill
California’s property tax fiscal year runs from July 1 to June 30. Counties mail one regular secured property tax bill for the year, which has two installments:
- First installment is due November 1 and is delinquent after December 10.
- Second installment is due February 1 and is delinquent after April 10.
The regular bill covers the full fiscal year. Supplemental bills, if any, are separate and can arrive on their own schedule after a sale or new construction is processed.
Timing in Merced County
Processing times for reassessments and supplemental bills vary. In many cases, the supplemental bill arrives several weeks to several months after closing. Some owners receive two supplemental bills if the reassessment affects both the remainder of the current fiscal year and the start of the next one.
Tax proration at closing
How escrow splits taxes
In California, escrow prorates property taxes so that each party pays for the time they owned the home during the fiscal year. A common approach is the day-count method:
- Use the latest annual tax amount as the baseline.
- Charge the seller for July 1 through the day before closing.
- Charge the buyer from the closing date through June 30.
Escrow will credit or debit each side based on what has already been paid. If a levy for the current year is not yet known, escrow uses the best available estimate, such as last year’s bill or a calculated estimate tied to the purchase price.
Handling supplemental bills in escrow
Supplemental bills are usually not included in the standard proration because they are issued after reassessment. Your contract should clearly address who is responsible for any future supplements. Common options include:
- Seller provides a credit at closing to cover expected supplemental taxes.
- Buyer agrees to pay supplemental bills when they arrive.
- Escrow holds funds in reserve and releases them when the supplemental bill is issued.
Local custom can influence expectations, but your written agreement controls. Ask your agent and escrow officer to spell this out before you sign.
Local factors in Merced County
Mello-Roos and special districts
Some Delhi parcels have extra charges for Mello-Roos community facilities districts, bonds, or other assessments. These appear on the regular property tax bill in addition to the 1 percent base. Make sure you review the property’s tax history and identify any special assessments so your estimates are accurate.
Delinquencies and appeals
If there are delinquent taxes, they typically show up in the preliminary title report and must be resolved at closing unless your contract says otherwise. If an assessment appeal is pending, decide up front who gets any refund or who covers any balance that results from the appeal.
Portability for eligible sellers
If you qualify under Prop 19, you may be able to transfer your lower assessed value to a replacement home. This can be a major tax savings. Eligibility, timing, and limits apply. File the correct claims with the county to request approval. Do not assume portability without county confirmation.
Examples you can use
Example 1: Standard proration
- Most recent annual tax bill: $6,000 for July 1 to June 30.
- Closing date: March 1.
Seller owns from July 1 through February 28. That is 243 days out of 365.
- Seller share: 243 ÷ 365 × $6,000 ≈ $3,994. The seller is credited that amount at closing.
- Buyer share: $6,000 − $3,994 ≈ $2,006. The buyer is debited that amount at closing.
This splits the known annual levy by time owned. If a sale triggers reassessment, supplemental bills will follow later and are handled as your contract specifies.
Example 2: Supplemental bill after purchase
- Prior assessed value: $300,000.
- Purchase price and new assessed value: $500,000.
- Difference: $200,000.
- Estimated combined tax rate: 1.10 percent for illustration. Actual rates vary by parcel.
- Purchase date: April 1. Remainder of fiscal year is 91 days out of 365, which is about 0.249 of a year.
Annual supplemental tax on the $200,000 difference is $2,200. The prorated portion for April 1 to June 30 is $2,200 × 0.249 ≈ $548. That bill is mailed to the new owner unless your contract or an escrow holdback says otherwise. A second supplemental bill may arrive for the next fiscal year until the new value is fully reflected in the regular roll.
Buyer and seller checklists
If you are selling
- Ask escrow to state clearly who will pay any supplemental tax that arises after closing.
- Disclose any special assessments, pending appeals, or known tax issues.
- Review the closing statement to confirm the regular tax proration matches your ownership period.
If you are buying
- Budget for two parts: your prorated share at closing and possible supplemental bills that arrive later.
- Confirm with escrow whether a holdback or seller credit will cover expected supplemental taxes.
- Review the property’s tax history and identify any Mello-Roos or other assessments that affect the total.
For both parties
- Know the fiscal year dates and the regular due dates.
- Put agreements about supplemental taxes in writing in the purchase contract or escrow instructions.
- Keep an eye on your mail after closing. If a supplemental bill arrives, follow the payment instructions and due dates to avoid penalties.
Ready for local guidance?
Property taxes in Delhi follow statewide rules, but the details of your parcel, timing, and contract language make a real difference. If you want help estimating your taxes, setting up a clean proration strategy, or deciding how to handle supplemental bills, our family team is here to walk you through it. Talk with Donald & Dora Oliveira for a local, step-by-step plan that fits your move. Prefer Spanish or Portuguese? We are bilingual and ready to help.
FAQs
How are property taxes calculated in Delhi, Merced County?
- Your tax is based on the assessed value, usually your purchase price under Prop 13, multiplied by a base 1 percent rate plus any local voter-approved charges.
When will I receive a supplemental tax bill after buying in Delhi?
- After the county processes the reassessment, a separate bill is mailed for the period from your purchase date to June 30, which can take weeks to several months.
Are supplemental taxes included in closing costs in California?
- Not usually; supplemental bills are typically handled outside the standard proration unless your contract sets a seller credit, buyer responsibility, or an escrow holdback.
What are the property tax due dates in Merced County?
- The first installment is due November 1 and delinquent after December 10; the second is due February 1 and delinquent after April 10.
How do Mello-Roos or special assessments affect my Delhi tax bill?
- They are added to the regular bill on top of the 1 percent base, so your total tax can be higher than the base rate suggests.
Can I transfer my lower tax base to a new home under Prop 19?
- If you are 55 or older, have a qualifying disability, or are a disaster victim, you may qualify to transfer a lower base value, subject to rules, filings, and deadlines.
