Real Estate Tax Prorations
Real Estate Tax Prorations
Please go to our web page www.benchmarktitle.net and look on the left side, click on the caption “Title Tip Newsletter” and in the archives you will fine a title tip regarding tax prorations dated June 29, 2007, click on that and re-read for a point of reference, more particularly the following paragraph:
“It should be noted that we always work from the most recent County Treasurer’s tax bill and do not obtain tax information from the County Assessor’s Office. Until the tax bills have been mailed out and are considered final we do not rely on the Assessor’s records because the property assessments may not yet be available or may not be accurate because a reassessment is underway or has not yet occurred, or the county multiplier may not yet be available or final. However, if the parties are not happy with a proration based on the most recent tax bill we are happy and willing to prorate taxes based on the agreement and instruction of the parties. Such arrangements typically occur when the property has recently been subdivided and the prior tax bill is for a much larger parcel, or when a new building has been constructed on the property and the prior assessement was for land only.”
Most of the questions we get have to do with the new tax bills on new homes. Here is where the confusion comes in and sometimes the frustration. Remember that in Illinois the taxes are paid in arrears, so the 2008 taxes have not been established as yet, what you are paying is the 2007 taxes, and that is all the information we have to do our calculations.
In most cases the taxes on new homes have not been calculated or assessed as completed homes as of the date of closing, therefore we have no idea what the actual taxes may be after that assessed value has been established. Our information for the proration of taxes at the date of closing will be based on the most recent available tax for that property. If the county has not established a re-assessed value for the property there is no other information available to us for the tax proration other than as undeveloped land or builder tax rate. In all cases we are bound to follow the wording in the sales contract regarding this, as well as any other matters.
We will be happy to discuss this information with you at any
time if you feel you need further clarification. Please feel free to contact
us at our office 618-239-3750.
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