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What You Need to Know About Property Taxes if You’re Closing After Oct.1st

Property Taxes Are Paid Early if You Close After Oct. 1st.

This is one of those things that happens if you’re selling, buying or refinancing a home this time of year at the closing table.  So be prepared for property taxes to be paid the last quarter early.  It’s just the way it is. An explanation follows:

In Texas, property taxes are paid in arrears, meaning that 2012 property taxes are due at the end of the year as opposed to the beginning.  Tax bills are sent out around October 1st each year and are due by January 31st of the following year.  In closings that take place prior to October 1st, the seller credits the buyer for taxes from January 1 through the day of closing.

 The buyer then pays the full year’s property tax at the end of the year.  However, in closings that take place after October 1st, and if the tax bills are available, the buyer credits the seller for taxes from the day of closing through December 31 and the seller pays the entire year’s property taxes.

Property tax debits and credits are shown on the first page of the HUD closing statement as part of the seller’s and/or buyer’s closing costs.  You can get this information from the title company as soon as you have an executed contract or refinancing information is complete.

Coming Soon….Appraised Value

What’s Your Appraised Value?

Appraised Value

TX Property Taxes

Tax value forms from the county will be arriving very soon.  Watch for your new appraised value.  The real estate market had corrected a great deal since last year and in many cases the county is behind in catching up with the true market value of your home.  Although your market value and assessed value are two different values the county does use market sales comps as a form of tax assessment.  Let’s face it, Texas is one of the highest property tax states in the country.  If you disagree with this:

 It  is Your Right a Taxpayer to dispute it!

You’ll have until May 31st 2011 to file a protest with the review board. Here are links for more information:

Collin CountyDallas CountyDenton County.  You’ll find different ways to protest on the sites.