The sales contract controls if the buyer, seller or both will pay the property’s real property tax for the current year.  Depending on the time of year that you close your real estate transaction will depend who will pay the property tax for the year. In most cases, taxes will be collected at closing in order to meet contract and title insurance requirements. Additionally, if there are any delinquent property taxes at the time of closing, the seller is responsible for paying the delinquent years. It is common practice, again depending on the sales contract, that taxes for the current year are prorated between the buyer and seller on the settlement statement. Generally, the lender requires the closing attorney or settlement agent to establish an escrow account to pay taxes for future years.

Furthermore, it is common for the tax assessor to assess property for a partial improvement. This means if you built your home and it was completed in June, then the tax assessor could assess your property for a partial improvement for the time that the home was built.