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The following dates should be useful in determining how you will handle the proration of unsegregated taxes for your project:
January 1
Assessment Date. Taxes become a lien not yet due and payable for the Fiscal Tax Year starting July 1st. This
is also the valuation date for new construction. If a subdivision map or condominium plan has not recorded by this date, the tax bill will not be segregated when issued in October and an estimate will be required. You should also note the status of construction of your project as of this date. If the value of the improvements is not already showing on your bill, you should expect a reassessment. The Assessor will likely use a cost approach for their appraisal which will include soft and hard cost and standard measures for construction.
First sale occurring between January 1st and October 1st: You will need to determine if segregated bills will be issued based on when the map or condominium plan recorded. In addition, you will need to estimate what the bill will be and collect from the buyer an amount sufficient to cover their portion of any unsegregated bill. The bill will be sent to the property owner as of January 1st, which may be you. It will be your obligation to pay both installments of any unsegregated bill and to forward any segregated bills you receive to the appropriate owners. See “Estimating Future Unsegregated Taxes” on page 29 of this handbook for various methods of estimating and paying unsegregated taxes.
February 1
2nd installment regular taxes are due.
April 10
2nd installment regular taxes last day to pay without penalty.
July 1
Fiscal tax year begins. Taxes are due after this date but not yet known or payable. Even if taxes will be segregated for this new fiscal year, an estimate will be required for closings from now to when the bill is issued in October. The Assessor can now advise if the taxes will be segregated and provide the valuations being used for the upcoming bill(s). This will be helpful for determining your estimate or confirming the estimate you are using.
Sales occurring after July 1st: Your estimate will now be prorated between you and the buyer.
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