Important tax implications hit on June 16!
June 2, 2015
We know; nobody likes talking about taxes. But this is important, and we'll get through it together. We are closing in on a special time of year: the tax roll enrollment deadline!* This deadline has significant implications for both contractors and customers who are utilizing CaliforniaFIRST financing. Any project that has a Completion Certificate and all associated documents submitted and approved by Tuesday, June 16, at 5 p.m. will be included in the next county tax roll (fall 2015). This means participating homeowners will see the PACE assessment on their next property tax bill in the fall. If you miss the June 16 cutoff, projects won't get on the tax roll until the fall of 2016. Missing the June 16 cutoff means 18 months before payment is due, but also 18 months of capitalized interest. Depending on your point of view, making the tax roll next year can be a pro (no payment for nearly 18 months!) or a con (more capitalized interest). We just wanted to let you know that this critical time is quickly approaching so that you and your contractor (or you and your customer) can discuss these implications as you make your way through the financing process. Special Note on Extension Requests for contractors: If you anticipate that you may need an extension, please contact us immediately to discuss. When we generated your customer's assessment contract, we assumed the maximum amount of capitalized interest based on the reservation period for the project. In cases where we receive an extension request to the reservation period that would cross the tax roll cutoff deadline, the capitalized interest will be higher than the initial assumption, and the total cost would then exceed the amount indicated on the assessment contract. In turn, this many require a new assessment contract for the property owner. Let us know if you have any questions by calling 844-589-7953 or contact your Regional Sales Manager. * Please note that the cut-off date has already passed in the counties of Fresno and Kern.