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State's Attorney's Office

Estimated Real Property Tax and Other Non-tax Charges

Explanation of Bill 24-07, Real Property - Disclosure - Property Tax, Enforcement
Explanation of Bill 36-07 -  Development Districts - Amendments


When a person buys a house to be used as the owner-occupied principal residence, the new owner pays the pro-rata share of the property tax bill in the fiscal year of purchase that the old owner owed. For example, if the property tax bill were $4,000 and the date of closing were 3 months before the fiscal year ended, the new owner would pay $1,000, which is 3/12th of the bill for that year.  However, in many cases, the new owner will owe more, perhaps substantially more, property taxes in the next fiscal year (the first full fiscal year of new ownership), than the old owner would have paid. The reason is that the new owner is not eligible for the homestead property tax credit in the first full fiscal year of ownership.

The purpose of bill 24-07 is to provide the buyer of an owner-occupied principal residential property an estimate of the property tax bill (plus non-tax charges included on the bill) in the first full fiscal year of ownership. There is no way to calculate the exact amount of the property tax bill for the first full fiscal year of ownership, because there is no way to know what property tax rates the State, the County, or the municipality if any will set for that year.

The estimate for property tax and non-tax charges is based on:

  • next fiscal year's phase-in value if known, otherwise the current fiscal year's phase-in value
  • this fiscal year's property tax rates (State, County, and municipal)
  • no property tax credits (homestead, homeowners, income tax offset, senior)
  • non-tax charges in the next fiscal year the same as in the current fiscal year