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I bought in November but now the town wants me to pay property taxes for the full year, why?
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As part of the closing you will have received a pro rated credit for taxed due the following year. Property taxes are paid in arrears, which means that for example taxes for 2005 will be paid in early 2006. Since the former owner has had ownership of the property until some time in November he is liable for the property taxes from January up to the closing date.
You will receive a credit at closing for this amount from the seller. A point in the contract to buy or sell real estate specifies how such taxes are to be calculated. Are last years taxes to be used for this calculation or should the title company base its calculation on the most recent mill levy?
The difference is, if taxes have increased since the last tax year the latest mill levy will reflect that and the pro ration of taxes will more accurately reflect actual taxes due next spring.
Since you have received a credit for the time the former owner had possession of the property and you had possession for the balance of the year you are liable for the taxes due next spring in full. |
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