property tax question

kmurali70 · Joined: 25 Oct 2007 Posts: 2 2.51 Dollars($)

I live in texas and own a home where 2 counties charges county tax and ISD tax. I bought this inventory home in Oct 07, so should i pay all the taxes for the whole of 07 or is my builder responsible for the remaining 9 months and me 3 months.
example if the appraised value of home is $100,000 and tax rate is 2%, then should I pay 2000$ or pro-rated rate of 3months = 3/12 * 2/100 * 100,000 = 500$. and the remaining 1500$ by the builder.
I own a home in frisco,tx and the 2 counties are denton and collin county.
thx

lisascherzer · Joined: 04 Jan 2008 Posts: 575 66.11 Dollars($)

Call your county tax auditors office and they will be able to tell you how much the taxes are. Sometimes they even post this online. Zillow.com also posts the property taxes for the last year. It's better to be exact than to estimate since this information is easily accessed.

jheard · Posted: Mon Jan 07, 2008 8:55 am Post subject:

It does not seem right that you pay 2 county taxes unless you live on the Ponderosa or some other large property that covers 2 counties. Double check this. A typical residential lot should only pay 1 county tax.

Typically, the tax bill is apportioned, or prorated, for only the time you owned it during the tax year, but that is negotiable between buyer and seller.

jameshogg

Hi jheard,

Nice to see you here again. Smile

Well, I too feel that the original poster shouldn't pay taxes for both counties. But don't you think that he should pay taxes for the entire year because he owned the lot.

Though the property took time to built, yet I think he needs to pay tax on the land at least, isn't it? The builder need not pay because the land is owned by the poster himself.

Thanks

evolovik26 · Posted: Tue Jan 08, 2008 7:47 am Post subject:

this should have been addressed in your purchase agreement but typically you have to pay taxes for only the time you actually held the property. If however you already bought the property and there are back taxes due for it then if you own the property its your responcibility. My advice look at your paperwork and talk to your realtor. Then go back to your builder if there are discreptancies. However if the sale is complete the builder might not want to pay you back.

jheard · Posted: Tue Jan 08, 2008 9:23 am Post subject:

@jameshogg

I did not read the facts that way. But yes, you pay taxes on the land, not the building. So, if you owned the land, you would have to pay taxes, whether a builder was building a house or not.

lisascherzer · Joined: 04 Jan 2008 Posts: 575 66.11 Dollars($)

The seller (builder in this case) is responsible for taxes until the property transfers into the buyers name. The title company will prorate the taxes appropriately based on the date of transfer.

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