Keller Williams Realty Atlanta’s Legal Tip of the Week
Legal Tip presented by:
Leigh Clack, Neel & Robinson, Attorneys at Law LLC
22 Lenox Pointe, Atlanta, GA 30324
lenox@neelandrobinson.com 404-705-3690 fax 404-705-3697
Fulton County Property Tax Bills – How Does This Affect Buyers and Sellers in Fulton County?
*** See the article below about the Fulton County taxes coming out very late this year.
1. Buyers will be required to escrow 12-14 months with their new lender. This will be a shock if the Good Faith Estimate is much lower. There will be a proration from the seller, but this is not reflected in the prepaids.
2. Sellers will be required to pay a prorated share of the estimated taxes to the buyer, even if the seller has been paying taxes into their own lender’s escrow account. This may be a financial surprise and strain on many sellers, who will have to wait several weeks after closing to get their escrow refund.
3. Buyers need to confirm that the correct estimate is being used for the prorated tax credit from the Seller. If the current Seller is not eligible for homestead exemption or other property tax deductions (based on ownership on January 1st), then any previous exemptions or discounts should be removed before estimating the current year’s taxes for both prorations and escrows.
***
Fulton tax bills to be mailed soon after many delays
The Atlanta Journal-Constitution
Fulton County’s much delayed tax bills look like they will finally be mailed by the end of October. County officials are shooting for a mailing date as soon as Oct. 15.
The timing is critical because payments are due 60 days after the mailing date. So, the later they are sent out, the closer the due date comes to falling after Dec. 31. The delays have already put a cash-flow strain on local governments straining under the worst recession in decades. Any date beyond year’s end would push many payments into 2010.
That could leave governments unable to repay tax anticipation notes that are due by Dec. 31. And taxes paid in 2010 also would not allow homeowners to take a write-off on 2009 taxes.
Fulton tax assessors and Tax Commissioner Arthur Ferdinand have been squabbling for weeks over the county’s tax digest, delaying its approval and the mailing of bills. Officials say that’s all been worked out now. Still, it will take the county four to six weeks to prepare, print and mail bills. On Aug. 24, the Fulton County Superior Court issued a temporary collection order, which allows the tax commissioner to bill 2009 property taxes using the approved 2009 millage rates and 2009 property values. Parcels with valuations under appeal will be billed at 85 percent of their value pending the settlement of their appeals.
The Fulton County tax commissioner collects property taxes for Fulton County, the city of Atlanta, Atlanta Public Schools, Fulton County Schools, and many of the other cities within Fulton County.
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