Each November, South Floridians have a lot to look forward to: 75 degree weather while their friends in the north experience their first snowfall, the upcoming holiday season, and, of course, their property tax bill.
Property tax bills are mailed out by the counties on the first of the month, but are also available and payable online. Property taxes are paid in arrears, which means that eleven months into 2016 is our first opportunity as homeowners to pay for the entirety of 2016.
Additionally, the earlier you pay your taxes, the bigger a discount you get. While 2016’s property taxes aren’t due until the end of March 2017, it’s smart to pay prior to November 30th for a 4% discount on the overall amount you owe. If paid by December 30th, the homeowner receives a 3% discount, with each month that passes reflecting a percentage point less until the full amount comes due.
However, if you are selling a home during November or December, listen up! Often times, property taxes are included on the Settlement Statement (known as a HUD if it’s a cash sale or a Closing Disclosure if there is a mortgage). This way, both parties can see that the funds are being collected and know they will be timely paid by the closing agent.
If a property is set to close on November 15th, 2016, for example, the amount collected should reflect the 4% discounted figure. Then, the seller should make sure that they are receiving a credit for the month and a half they no longer own the home, from November 16th through December 31, 2016. These prorations should be reflected on the Settlement Statement, and your attorney should always verify that this figure is correct.
And regardless of whether you are selling a home you’ve been in for 30 years or just paying the annual bill on your starter home, remember to double check that your money has been received by the county, and that it has been applied to your account. Even government can make mistakes!
Disclaimer: The information contained on this web site is provided as a service to the Internet community, and does not constitute legal advice. This firm aims to provide quality information, but we make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in or linked to this web site. Nothing provided herein should be used as a substitute for the advice of competent counsel.