Property Taxes for Property That was Sold or Purchased
In Georgia, the name on the property tax bill does not necessarily reflect any recent sales. The tax commissioners get their information from the tax assessors. It varies from county to county, but many tax assessors only change the name in their records to show the owner as of January 1st of each year. If a person sells a house in March, the seller’s name will often still be on the tax bill that is sent later that year.
The tax bills cover the year they are sent in Georgia. For example, the 2024 property tax bills for Dekalb County were sent out at the end of August 2024. Those tax bills cover the period from January 1, 2024, to December 31, 2024. If a person purchased a house in June, the seller’s name will likely still be listed as the owner on the tax bill.
At closing, any tax bills that are due are paid. If the bill has not been issued yet, then no taxes are paid to the Tax Commissioner at closing. Tax commissioners will not accept any payment prior to the bill being issued.This is why property taxes are pro-rated between the buyer and seller at closing. For a closing in June, the seller will give the buyer a credit at closing for the seller’s pro-rated share of the current year’s tax bill. When the tax bill is sent out later that year, the buyer is obligated to pay it in full, even if the seller’s name is still on the tax bill.
Tax bills can change from year to year depending on the value of the property and the millage rate. It is possible that the amount used to pro-rate the property taxes at closing was based on the wrong amount for that year. In those situations, most sales contracts require the buyer and seller to re-prorate the property taxes once the bill is available.
As the seller, if you received a tax bill for property you sold, do not pay the tax bill. Sellers should send that tax bill to the buyer or closing attorney. If you received the bill as the seller, it is likely the buyer did not receive the tax bill and will not know to pay it.
Property taxes due after closing are not covered by title insurance. Property taxes accrue penalties and interest quickly. If you are the owner of the property, be sure to pay the tax bill, even if the seller’s name is on it. In most counties, if you do not have a tax bill by November 1st, owners should contact the tax commissioner or search for a tax bill on-line to make sure it gets paid. Failure to receive the tax bill does not relieve the owner of the obligation to pay the property taxes.
John C. Bennett is a real estate closing attorney and owner of Origin Title and Escrow, Inc.. Since 2003, Origin Title has handled real estate transactions – purchases, refinances, reverse mortgages – quickly and professionally. There will be no surprises, nothing misunderstood. Title searches are thorough and well-reasoned, to avoid unpleasant surprises later down the road. Calculate your closing costs in Georgia or Florida using our calculator or contact Origin Title using this form.