The seller pays a prorated amount of both until the 10th and the buyer pays a prorated amount of both from the 11th until the end of the month (HOA dues) or until the end of the tax year (June 30 for CA property taxes). Buyer only pays the prorated seller’s taxes remaining between the closing date and June 30.
Buyer will receive a Supplemental Bill from the assessor for the rest of the taxes they owe between 5-1/2 and 9 months from closing, depending on which month they close. This bill will be based upon a change in ownership and reflect buyer’s taxes from the date of closing MINUS any seller’s taxes they already paid in escrow. If buyer bought the property at less than the seller’s assessed value at the time of closing, their eventual supplemental bill will show a credit, which can be taken in the form of a check or applied to the next fiscal year’s tax bill.
