Recently purchased NVC who should pay CA taxes?

[MOXJO7282]

The bill says "for the period 7/1/08 - 6/30/09". I took ownership with first year usage 2009. Is this the 2009 bill? I assume it is, but wanted to make sure as it reads 2008-2009.

Regards.
Joe

 

[barndweller]

Property tax bills come late in the year in Ca. The bill is payable in 2 installments for the next taxable year and billed seperately from MF. Yes, you should pay it. You will have use during 2009. So it is your responsibility.

 

[Werner Weiss]

When negotiating a resale transaction, the parties should have agreed on who get usage for the transition year(s), who pays the annual maintenance fees. and who pays the property taxes (if separately billed, such as at NVC).

It's customary that the party the gets the usage pays the expenses that correspond to that year, but it could be negotiated differently. It gets messier if any of the "years" aren't January-to-December years.

 

[cp73]

The bill says "for the period 7/1/08 - 6/30/09". I took ownership with first year usage 2009. Is this the 2009 bill? I assume it is, but wanted to make sure as it reads 2008-2009.
Regards.
Joe

The confusing thing about this is also the fact that your bill isn't due until December 10th....almost six months after the period begins. I live in California and never even thought about this when I purchased my unit. You will probably find that most people who purchase like you did will pay the 08/09 amount in full primarily because of the timing of when it is due. I suppose a good escrow company might pro/rate it if there was no agreement as to who pays what period. They could look soley at the dates of ownership.

 

[aka Julie]

I purchased a platinum ShadowRidge in March for first usage in 2009. I checked on the Riverside Co. website before purchase and saw that payment for fiscal year 7/1/07-6/30/08 was paid in 2 installments -- due dates of 12/10/07 and 4/10/08.

I assume the bill due 12/10/08 will be sent to me, but haven't received yet.

Is this the bill you already received?

 

[isisdave]

I've received my NCV (Orange Co) bills about three days ago, but not yet the ones for Riverside Co where I live. I'm sure they'll be here in a day or two.

The tax year in California is from July to June, and half is due December 10 and the rest April 10. It does take several months after closing for the assessors to get addresses changed. In fact, the bills probably go to whoever owned the property earlier in the year ... like March.

You're responsible for the tax but you may not get the bill. Contact the seller if he doesn't forward it to you. Or check out http://tax.ocgov.com/tcweb/search_page.asp ... if you have the parcel number (APN) you can get a copy.

 

[aka Julie]

I've received my NCV (Orange Co) bills about three days ago, but not yet the ones for Riverside Co where I live. I'm sure they'll be here in a day or two.

The tax year in California is from July to June, and half is due December 10 and the rest April 10. It does take several months after closing for the assessors to get addresses changed. In fact, the bills probably go to whoever owned the property earlier in the year ... like March.

You're responsible for the tax but you may not get the bill. Contact the seller if he doesn't forward it to you. Or check out http://tax.ocgov.com/tcweb/search_page.asp ... if you have the parcel number (APN) you can get a copy.

Thanks for the heads up. I'll definitely follow if we don't get the bill in a timely manner.

 

[frb]

isisdave, thanks for the link to the OC tax website. I recently closed on NCV and using the link, was able to print out my property tax bill (found it using the parcel # on my grant deed). Now I don't have to worry/wait if they send me a bill before the December 10 due date.

 

[mfan]

The bill says "for the period 7/1/08 - 6/30/09". I took ownership with first year usage 2009. Is this the 2009 bill? I assume it is, but wanted to make sure as it reads 2008-2009.

Regards.
Joe

No, I'd disagree with others! Since your first usage is not until 1/1/2009, I think the previous owner should pay for the 2008 portion of the property tax. This is the same principal as a home purchase. However, given the deal has already concluded, the seller is under no obligation to pay. This should have been part of the purchase negotiation. But, it doesn't hurt to ask since the seller did benefit from the 2008 usage.

In a home purchase, the escrow process prorates the taxes between buyer and seller based on the title change date. Unfortunately, since this is a timeshare, the title change date is usually different from the "usage entitlement" date, like in your case. You took title sometime in 2008, but you can't use it until 2009. :annoyed:

 

[UWSurfer]

When I purchased our San Clemente Inn week, the ad said the seller would pay taxes. After the deed was recorded I received a deliquency notice from Orange County for back taxes. With penalties, the total outstanding bill was about $55.

It was quicker and more reassuring for me to pay it and be done with it. I got the week for very little money and it was just too easy to take care of it myself. I think our taxes for SCI are now $17 a year. I always giggle when the tax bill offers me the opportunity to pay that in two installments. :hysterical:

I'm sure NCV taxes are more.

 

[davidvel]

Property tax bills come late in the year in Ca. The bill is payable in 2 installments for the next taxable year...

This is not accurate. In CA, property taxes are paid "in arrears." What this means is the two installments (if you wish) are due in December and April. However the payment(s) cover the period from the prior July through the next June as the OP notes on the bill.

This makes it a tricky accounting for a sale and I agree with wfan that 1/2 the bill should be paid by the seller who had 2008 usage.

Since your first usage is not until 1/1/2009, I think the previous owner should pay for the 2008 portion of the property tax.

 

[isisdave]

This is not accurate. In CA, property taxes are paid "in arrears."

I'm pretty sure they're not. When a home is sold and escrow prorates taxes, it does not charge all the taxes to the seller, who presumably lived in the home the previous taxable year. It prorates the amount over the current July-June tax year.

And what tax system on the face of the Earth would let you pay taxes five and nine months after the period they pertained to?

Why do you think otherwise?

 

[mfan]

I'm pretty sure they're not. When a home is sold and escrow prorates taxes, it does not charge all the taxes to the seller, who presumably lived in the home the previous taxable year. It prorates the amount over the current July-June tax year.

And what tax system on the face of the Earth would let you pay taxes five and nine months after the period they pertained to?

Why do you think otherwise?

Well, davidvel thinks otherwise because he's correct and you're wrong. You should call up your accountant or the county tax assessor's office to get clarification.

CA property tax is paid in arrears (or in mids to be exact). The tax bill is due in December and April. The December bill is for the July thru December period in the same calendar year. The April bill is for the January thru June period of the same calendar. Both payments are in mids of the period they pertain to.

When a home is sold, the escrow will prorate the taxes based on the title change date and what property tax the seller has already paid. For example, if the title change date is in August, escrow will ask the seller to pay ~2 months of property tax and ask the buyer to pay ~4 months to cover the first bill that's due in December (unless the lender doesn't require it, which is very rare!).

Another example, if the title change date is in April and the seller has already paid the April tax bill, the escrow will require the buyer to refund the seller for ~2 months of taxes.