Expert: liznarr - 8/29/2007

Question
I am very confused as to how my property taxes are going to be calculated for this November.  I bought my home in cash in May and the escrow company gave me back money for taxes.  Something I am not sure why. Now the property taxes should be some where around $2500 each year.  Am I going to be paying more than $2500 for this year alone? Or is it going to be around the same amount?

Answer
Hi Marisa,

I can only guess at reasons for the questions you asked, but possibly the reason the escrow company gave you money back for taxes is that you paid too much at closing.  Federal law prohibits companies from collecting excess amounts at closing and requires refunds.

I would consult with whoever closed the transaction for you when you purchased your home and ask why you received money back – or call the escrow company for an explanation.

I would never count on property taxes remaining the same each year.  Taxes usually always go UP due to ever-increasing costs of government, although sometimes they “could” go down.  You will probably see an increase in both taxes AND homeowner’s insurance premiums each year.

You can call your county assessor’s office to find out if the assessed value of your property has increased, and you can call your county treasurer’s office for an amount of taxes you will be paying each year.  If your taxes are paid in arrears (at the end of the year for the entire year), the calculated amount due each year may not be available until later in the year … usually around mid-November.

If, however, your taxes are paid in advance (at the beginning of each year for each year), your county treasurer should be able to give you the amount of your taxes now.

Good luck to you, and feel free to write again if you have additional questions.

Regards,
Elizabeth