Property Tax question

[Eugene]

For the time being, you’ll be paying the property tax based on the previous value. Some time next year, possibly in the summer, you’ll get a refund check from the tax assessor based on the difference between what you did pay in taxes and what you should have paid if the house were reassessed in time.

Once the tax assessor comes around to reassess your house, you’ll may need to contact the escrow company and tell them to reduce the amount they collect from you every month.

[SD Realtor]

Sk I must have been in the twilight zone.

Yes escrow will pay the property taxes generally until the next period with prorations made accordingly.So yes for an example of a closing on march 1 the seller will be debited the proration of the second half of the property tax year based on the assessment that was determined at the beginning of that tax year. Similarly the buyer will also be debited from coe to the end og the tax year, escrow will pay the county and it will be done. Of course this is assuming the seller didn’t make the second half payment yet.

Now once the property is reassessed, then depending on the reassessment the buyer may or may not receive a credit with the supplement. If the assessor feels that the purchase price was signicantly low the assessment will be higher then purchase price.

So one hole in the process is if escrow gets the assessed value from the recorders office. The recorder generally doesn’t get the assessed valu until september which coincidetally is when you get your tax bill. So let’s say you are closing escrow in say sept and the assessor has significantly reduced the assessment but it wasn’t released to the recorder yet. So when that escrow closed both sides would have prorations based on the higher amount. Similarly the escrow company would have payed the first half based on an incorrect assessment. Also the proration debited from the seller would have been incorrect (to high). So after that closing happens the seller cannot retreive that overpayment from the county. They have to go to escrow who will then have to go to the buyer to try to get the overprorated amount back

Anyways thanks for correction as I was out in space.

[SD Realtor]

Sk I must have been in the twilight zone.

Yes escrow will pay the property taxes generally until the next period with prorations made accordingly.So yes for an example of a closing on march 1 the seller will be debited the proration of the second half of the property tax year based on the assessment that was determined at the beginning of that tax year. Similarly the buyer will also be debited from coe to the end og the tax year, escrow will pay the county and it will be done. Of course this is assuming the seller didn’t make the second half payment yet.

Now once the property is reassessed, then depending on the reassessment the buyer may or may not receive a credit with the supplement. If the assessor feels that the purchase price was signicantly low the assessment will be higher then purchase price.

So one hole in the process is if escrow gets the assessed value from the recorders office. The recorder generally doesn’t get the assessed valu until september which coincidetally is when you get your tax bill. So let’s say you are closing escrow in say sept and the assessor has significantly reduced the assessment but it wasn’t released to the recorder yet. So when that escrow closed both sides would have prorations based on the higher amount. Similarly the escrow company would have payed the first half based on an incorrect assessment. Also the proration debited from the seller would have been incorrect (to high). So after that closing happens the seller cannot retreive that overpayment from the county. They have to go to escrow who will then have to go to the buyer to try to get the overprorated amount back

Anyways thanks for correction as I was out in space.

[SD Realtor]

Sk I must have been in the twilight zone.

Yes escrow will pay the property taxes generally until the next period with prorations made accordingly.So yes for an example of a closing on march 1 the seller will be debited the proration of the second half of the property tax year based on the assessment that was determined at the beginning of that tax year. Similarly the buyer will also be debited from coe to the end og the tax year, escrow will pay the county and it will be done. Of course this is assuming the seller didn’t make the second half payment yet.

Now once the property is reassessed, then depending on the reassessment the buyer may or may not receive a credit with the supplement. If the assessor feels that the purchase price was signicantly low the assessment will be higher then purchase price.

So one hole in the process is if escrow gets the assessed value from the recorders office. The recorder generally doesn’t get the assessed valu until september which coincidetally is when you get your tax bill. So let’s say you are closing escrow in say sept and the assessor has significantly reduced the assessment but it wasn’t released to the recorder yet. So when that escrow closed both sides would have prorations based on the higher amount. Similarly the escrow company would have payed the first half based on an incorrect assessment. Also the proration debited from the seller would have been incorrect (to high). So after that closing happens the seller cannot retreive that overpayment from the county. They have to go to escrow who will then have to go to the buyer to try to get the overprorated amount back

Anyways thanks for correction as I was out in space.

[SD Realtor]

Sk I must have been in the twilight zone.

Yes escrow will pay the property taxes generally until the next period with prorations made accordingly.So yes for an example of a closing on march 1 the seller will be debited the proration of the second half of the property tax year based on the assessment that was determined at the beginning of that tax year. Similarly the buyer will also be debited from coe to the end og the tax year, escrow will pay the county and it will be done. Of course this is assuming the seller didn’t make the second half payment yet.

Now once the property is reassessed, then depending on the reassessment the buyer may or may not receive a credit with the supplement. If the assessor feels that the purchase price was signicantly low the assessment will be higher then purchase price.

So one hole in the process is if escrow gets the assessed value from the recorders office. The recorder generally doesn’t get the assessed valu until september which coincidetally is when you get your tax bill. So let’s say you are closing escrow in say sept and the assessor has significantly reduced the assessment but it wasn’t released to the recorder yet. So when that escrow closed both sides would have prorations based on the higher amount. Similarly the escrow company would have payed the first half based on an incorrect assessment. Also the proration debited from the seller would have been incorrect (to high). So after that closing happens the seller cannot retreive that overpayment from the county. They have to go to escrow who will then have to go to the buyer to try to get the overprorated amount back

Anyways thanks for correction as I was out in space.

[SD Realtor]

Sk I must have been in the twilight zone.

Yes escrow will pay the property taxes generally until the next period with prorations made accordingly.So yes for an example of a closing on march 1 the seller will be debited the proration of the second half of the property tax year based on the assessment that was determined at the beginning of that tax year. Similarly the buyer will also be debited from coe to the end og the tax year, escrow will pay the county and it will be done. Of course this is assuming the seller didn’t make the second half payment yet.

Now once the property is reassessed, then depending on the reassessment the buyer may or may not receive a credit with the supplement. If the assessor feels that the purchase price was signicantly low the assessment will be higher then purchase price.

So one hole in the process is if escrow gets the assessed value from the recorders office. The recorder generally doesn’t get the assessed valu until september which coincidetally is when you get your tax bill. So let’s say you are closing escrow in say sept and the assessor has significantly reduced the assessment but it wasn’t released to the recorder yet. So when that escrow closed both sides would have prorations based on the higher amount. Similarly the escrow company would have payed the first half based on an incorrect assessment. Also the proration debited from the seller would have been incorrect (to high). So after that closing happens the seller cannot retreive that overpayment from the county. They have to go to escrow who will then have to go to the buyer to try to get the overprorated amount back

Anyways thanks for correction as I was out in space.

[Eugene]

[quote]Similarly the escrow company would have payed the first half based on an incorrect assessment. Also the proration debited from the seller would have been incorrect (to high). So after that closing happens the seller cannot retreive that overpayment from the county. They have to go to escrow who will then have to go to the buyer to try to get the overprorated amount back[/quote]

That does not sound right.

The treasurer issues a bill based on the old assessment value. The escrow company collects part of the bill from the seller and the rest of the bill from the buyer (prorated based on the exact closing date.) When the next billing cycle arrives, it would appear to me that the treasurer would send two supplemental bills/refunds, again prorated based on the closing date, one to the seller and one to the buyer.

[Eugene]

[quote]Similarly the escrow company would have payed the first half based on an incorrect assessment. Also the proration debited from the seller would have been incorrect (to high). So after that closing happens the seller cannot retreive that overpayment from the county. They have to go to escrow who will then have to go to the buyer to try to get the overprorated amount back[/quote]

That does not sound right.

The treasurer issues a bill based on the old assessment value. The escrow company collects part of the bill from the seller and the rest of the bill from the buyer (prorated based on the exact closing date.) When the next billing cycle arrives, it would appear to me that the treasurer would send two supplemental bills/refunds, again prorated based on the closing date, one to the seller and one to the buyer.

[Eugene]

[quote]Similarly the escrow company would have payed the first half based on an incorrect assessment. Also the proration debited from the seller would have been incorrect (to high). So after that closing happens the seller cannot retreive that overpayment from the county. They have to go to escrow who will then have to go to the buyer to try to get the overprorated amount back[/quote]

That does not sound right.

The treasurer issues a bill based on the old assessment value. The escrow company collects part of the bill from the seller and the rest of the bill from the buyer (prorated based on the exact closing date.) When the next billing cycle arrives, it would appear to me that the treasurer would send two supplemental bills/refunds, again prorated based on the closing date, one to the seller and one to the buyer.

[Eugene]

[quote]Similarly the escrow company would have payed the first half based on an incorrect assessment. Also the proration debited from the seller would have been incorrect (to high). So after that closing happens the seller cannot retreive that overpayment from the county. They have to go to escrow who will then have to go to the buyer to try to get the overprorated amount back[/quote]

That does not sound right.

The treasurer issues a bill based on the old assessment value. The escrow company collects part of the bill from the seller and the rest of the bill from the buyer (prorated based on the exact closing date.) When the next billing cycle arrives, it would appear to me that the treasurer would send two supplemental bills/refunds, again prorated based on the closing date, one to the seller and one to the buyer.

[Eugene]

[quote]Similarly the escrow company would have payed the first half based on an incorrect assessment. Also the proration debited from the seller would have been incorrect (to high). So after that closing happens the seller cannot retreive that overpayment from the county. They have to go to escrow who will then have to go to the buyer to try to get the overprorated amount back[/quote]

That does not sound right.

The treasurer issues a bill based on the old assessment value. The escrow company collects part of the bill from the seller and the rest of the bill from the buyer (prorated based on the exact closing date.) When the next billing cycle arrives, it would appear to me that the treasurer would send two supplemental bills/refunds, again prorated based on the closing date, one to the seller and one to the buyer.

[jeeman]

Is the first installment that was due in November of 2009 for 2010 taxes? Or was that for 2009 taxes?

[jeeman]

Is the first installment that was due in November of 2009 for 2010 taxes? Or was that for 2009 taxes?

[jeeman]

Is the first installment that was due in November of 2009 for 2010 taxes? Or was that for 2009 taxes?

[jeeman]

Is the first installment that was due in November of 2009 for 2010 taxes? Or was that for 2009 taxes?

[Author]

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