Taxes - Long and Short Proration

OHIO TAX PRORATION

All Property Taxes in Ohio are billed semi-annually.

(Due in February and July)

All Property Taxes in Ohio are billed in arrears.

  • The Tax Bill mailed in January 2021 is for the first half of 2020.

  • The Tax Bill mailed in June 2021 is for the second half of 2020.

 

Difference in Long and Short Proration

Long Proration:  The seller credits the buyer for taxes for the entire period of time the sellers owned the home up through the day of closing.

Short Proration reduces the Long Proration method by 6 months. This is a Customary Practice in Montgomery County. Although the buyer assumes the additional 6 month obligation for those taxes; when the buyer sells the property, they will receive the same benefit in return if the Short Proration method is used. 

C:\Users\smiller\Desktop\FLT.NEW.Logo (2).jpg

AT CLOSING

For Closings January 1, 2021 - June 30, 2021

Long Proration: Sellers pay (debit/credit on the Settlement Statement) the buyers for taxes the buyer will assume from July 1st of 2020 through the day of closing in 2021.

Short Proration: Sellers pay (debit/ credit on the Settlement Statement) the buyers for property taxes from January 1, 2021 through day of closing. 

For Closings from July 1, 2021 - December 31, 2021

Long Proration: Sellers pay (debit/credit on the Settlement Statement) the buyers for property taxes from January 1, 2021 through day of closing.

Short Proration: Sellers pay (debit/credit on the Settlement Statement) the buyers for property taxes from July 1, 2021 through day of closing.

NOTE:  Fidelity Lawyers Title Agency will follow the contract when we prepare the Settlement Statement.  The agreement of the parties set forth in the contract will supersede local custom.  

In all cases, the Seller is responsible for any delinquent taxes and/or penalties due prior to closing.