How Is The Oregon Tax Year Calculated At Closing?
Even though we don't need to pay our taxes until November 15th the actual tax year is from July 1st to June 30th the next year. In every closing it does make a difference to the buyers, sellers and the borrower and their settlement statements.
For sellers there is a debit on their closing statements from July 1st - October 15th even if they have an escrow account. In about 30 days the escrow account will come back to them from their bank.
In regards to the buyers closing statement they will receive a prorated tax credit based upon the amount from last year and will be responsible for paying taxes when due each November. If you had an escrow account then the lender will pay the taxes. When you get closer to October 15th date some of the lenders will require escrow to pay and hold the property taxes because the lender might not have enough time to pay from an escrow account.
For the borrowers many of the lenders will do an escrow account up until October 1st which is the first payment due date. If there is not enough time you might get too close to require escrow to be able to hold and pay any of your property taxes for the next year. You will have to pay any past due taxes that are owed at closing.
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