Proration of Property Taxes
The
Summer and Winter taxes will become a lien on the property as of July 1st
and December 1st
and are an amount based on the assessed value of the property as of
December 31st of the previous year.
The tax
bills are sent to the owners of record as of July 1st and December 1st, and that person is required to pay the tax bill levied.
However,
the question of proration of taxes is another question. Public Act 277 of
1968, which deals with the proration of taxes is entirely unrelated to
how, when, and for what period property taxes are assessed, levied or
collected. Public Act 277 of 1968 merely provides a method of settling
accounts between private parties to a real estate transaction in the
absence to a contrary agreement.
What
Public Act 277 of 1968 says is:
"
In any real estate transactions between private parties in the absence of
any agreement to the contrary, the seller shall be responsible for that
portion of said annual taxes levied during the 12 months immediately preceding, but not including, the day title passes, from the levy date or
dates to, but not including, the day title passes and the buyer is
responsible for the remainder of such annual taxes."
The
Treasury Department further clarifies, "levy date" to mean July
1st for summer bills and December 1st for winter bills which are the days on which any
general property tax becomes due and payable.
For
example, if the seller sells the property to the buyer, on October
2, and there is no agreement between the buyer and the seller concerning
the taxes, taxes will go to the buyer on the levy date December 1 the same
year.
The
township/cities of Newaygo
County
do not send a prorated tax bill as of July 1 or December 1 of any year. A full tax
bill is sent out and any adjustment will be made at the time of the sale
of property between the buyer and seller which will be a private
transaction.
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