Tax Proration Explanation

LUCAS COUNTY METHOD / DUE & PAYABLE

Example Closing Date 2024

• Taxes are paid twice a year. (Proration dates are 6/20 & 12/20)
• The first half 2023  is due and payable December 20, 2023.
• The 2nd half 2023 is due and payable June 20, 2024.
• In Lucas County taxes are from the last due and payable date to the date of closing.

Example using our closing date above:

• Taxes per year: $1592.72
• Divided by 365 days 4.3636164/per diem

Dates on Settlement Statement: 12/20/23 to 2/2/2024
Tax Prorate (credit to buyer) $192.00

LIEN Method/WOOD COUNTY

Taxes for 2024 are paid in 2025 (same as Lucas). (Proration dates are 7/1 & 1/1)
• The difference is the amount of credit the seller gives to the buyer.
• The first half 2023 is due on January 1, 2024.
• The 2nd half 2023  is due July 1, 2024.

Example using our closing date above:

• Taxes per year: $1592.76
• Divided by 365 days 4.3636164/per diem

Dates on Settlement Statement: 1/1/23 to 2/2/2024
Tax Prorate (credit to buyer) $=1732.36

NOTES

• The sellar is responsible for taxes that are due and payable, delinquencies, penalties, etc.
• Homestead credits, assessments, Etc. affect proration.
• All subsequent tax bills are the buyers’ responsibility.
• The city of Perrysburg is a “gray” area for tax proration. Both methods are used in this market.With that being said, the purchase NOR contract states:
  • “If the property is located in Lucas County, real estate taxes and assessments, both general and special, shall be pro-rated in accordance with the ‘do and payable’ Method according to Lucas County custom. The property is located outside of Lucas County, real estate taxes and assessments both general and special, shall be prorated in accordance with the due and payable method or linen method if no method is specified, the proration shall be in accordance with the linen method”