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Sometime during the month, regular tax bills should be received.
For first sales occurring after October 1st, you should be able to prorate based on the actual bill provided it correctly reflects the value of the project as of January 1st.* If you had sales and were using an estimate, escrow should now use the actual bill amount. Prorations will still be from the close of escrow through June 30th of the following year. The Assessor will be obligated to complete the segregation of taxes for the next year.
If segregated bills are issued when an unsegregated bill was expected, buyers should be sent their bills along with a refund of the estimate that was collected from their funds.
November 1
1st installment regular taxes are due.
December 10
1st installment regular taxes last day to pay without penalty. If paying unsegregated taxes, both installments should be paid.
*Although actual tax amounts should be able to be used for proration purposes after the bill is received in October, the following situations could mean the bill is too low and the receipt of an Adjusted, Escaped or developer’s Supplemental Bill is probable. In these cases an estimate of future taxes should still be used:
1. The bill is not in the name of the developer, indicating the probability of a future Supplemental. This will happen if you have had a change in ownership after January 1st. If this is the case, you should estimate the amount of the supplemental and prorate accordingly.
2. The value of the property does not reflect the value of the completed improvements as of January 1st. If this is the case, you should contact the regional office of the Assessor to see what adjustments they are planning to make before they complete the segregation.
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