Are property taxes prepaid or post paid?

Question

So.. Buying a house and i've never paid property taxes before. I'm curious, are property taxes generally paid before the tax period or after the tax period?

In other words, we pay taxes twice a year here in november and april. When you pay say on November 1st, are you paying for the period of April - November or the period of November - April? Or is this dependent on area? This is in CA if that matters.

Answer 1

In California, your April payment is for Jan 1-June 30 and your November payment is for July 1-Dec 31. So for the most part you are paying after the fact, but part of your payment is a prepayment. The drop dead deadline is 5/10 and 12/10 so your only prepaying about three weeks worth on those dates.

When you first buy a home, if it has appreciated a lot it may take the county some time to reassess and bill you for the supplemental tax. When I bought a home in December 2005 I was billed the old rate (much lower) until about September 2006 at which point they caught up with a massive bill. Be sure to set the money aside or at least be prepared.

Answer 2

Prepaid Property Taxes

Answer 3

In Illinois, taxes are paid March 1 and again later in the year. The March 1 payment is an estimate (1/2 of the prior year's payment), the later payment is enough to pay off the total amount due. The money paid in 2007 is actually the 2006 tax. California may have a more reasonable system.

If you have an escrow account, you will be pay into the account ahead of time, but the taxes aren't actually paid until the money leaves the account.

Answer 4

first of all, your unadjusted stability could be 266710. you may think of the thank you to journalize each and each transaction and the worksheet truly fills itself out a. If in basic terms 3200 in components is left, which ability you used 5700 throughout 3 hundred and sixty 5 days components cost 5700 ----------------------components 5700 (sorry, dont understand the thank you to indent on right here) b. coverage exp 3900 --------prepaid coverage 3900 c. Depreciation cost 8500 --------amassed depreciation 8500 d. For this one you may make a utilities payable row on your sheet Utilities cost 550 --------utilities payable 550 e. Wages cost 1600 -------------wages payable 1600 f. lease cost 2 hundred ----------lease payable 2 hundred g. components tax cost 900 ----------propert tax payable 900 h. interest cost 240 --------interest payable 240 After including all the debits and credit your finished modifications could be 21590 enter each and all the advice into the worksheet, then do your adjusted stability (that's going to come as as 278700) for the steadiness sheet, purely use the balances interior the debts that look on the steadiness sheet for the earnings assertion you will use the revs, exps

Answer 5

it's typically ahead of time - the tax amount of a mortgage goes into escrow to be paid out when the next bill is due

Answer 6

Personally here in Ohio, they are paid ahead of time...thank god I have an escrow account which keeps on increasing but they explained to me that they are paid a full year ahead of time.

Answer 7

Usually prepaid, but depends on where you are.