A Few Things to Remember
By law, whoever owns a property on January 1 of each year is responsible for that year’s property taxes.
The Tax Commissioner is required to send a tax bill to whoever owned the property on January 1, and also to the new owner if the property was sold later that year.
- If the property is sold later in the year, it is possible that the new owner is responsible for the payment of property tax. Documents signed at the sale closing indicate who must pay the taxes.
- The Tax Commissioner does not prorate taxes between buyer and seller. This should be handled at the closing as well.
- If the taxes for the year in which the property was sold go unpaid, a tax lien will be issued against the property. It will be filed in the name of the January 1 owner unless the January 1 owner provides the Tax Commissioner with proof of the transfer of tax liability.
- Provide a copy of the Acknowledgment and Receipt of Settlement Statement indicating the transfer of tax liability to the Tax Commissioner's office within 90 days of the tax payment due date if the taxes become delinquent.
- If proof of the transfer of tax liability is provided within 90 days of the tax payment due date, the tax lien will be filed in the name of the new owner.
If the property tax is paid by the due date, no documentation is required.