New Construction Tax Bills

When a new house is built, the first year often comes with four distinct tax bills. These bills cover both the value of the land and the newly constructed home. Here’s an overview of what you can expect:
      1) County/Township Bill for the Value of the Land (Regular Bill)
               Mailed: March
               Covers Tax Period: January 1 to December 31
               This bill is typically paid by the developer and prorated on your closing documents. Since it is a regular bill, it will be dated March 1.
      2) School Bill for the Value of the Land (Regular Bill)
               Mailed: July
               Covers Tax Period: July 1 to June 30
               Like the county/township bill, this is usually paid by the developer and prorated on your closing documents. It is considered a regular bill and will be dated July 1.
     3) County/Township Bill for the Value of the New Home (Interim Bill)
               Mailed: Shortly after occupancy permits are processed by the tax assessment office (date may vary).
               Covers Tax Period: From your closing date to December 31 This is an interim bill reflecting the newly constructed home’s value.
     4) School Bill for the Value of the New Home (Interim Bill)
               Mailed: Shortly after occupancy permits are processed by the tax assessment office (date may vary).
               Covers Tax Period: From your closing date to June 30 This is also an interim bill for the newly constructed home.

Example Timeline: If your closing date is October 1, 2024, here is an example of how these bills might look:

     Bill #1: County/Township tax for the land (January 1 to December 31, 2024)
     Bill #2: School tax for the land (July 1, 2024, to June 30, 2025)
     Bill #3: County/Township tax for the house (October 1 to December 31, 2024)
     Bill #4: School tax for the house (October 1, 2024, to June 30, 2025)

Important Notes: All tax bills are mailed directly to property owners. It is your responsibility to provide your mortgage company with a copy of the bill and ensure timely payment. In most cases, mortgage companies will pay regular bills. However, they may hesitate or refuse to pay interim bills upon first request. I strongly encourage you to follow up with your mortgage company to ensure interim bills are paid promptly.