Something we often get questions about during a home purchase is how property taxes are dealt with through escrow.
The buyer and seller are usually each responsible for paying part of the property taxes because of the way the property tax year is set up in Nevada.
The buyer is responsible for paying all property taxes due after he or she takes possession of the home. If the seller had prepaid his taxes that money would be charged to the buyer and credited to the seller.
The escrow only covers the taxes that the seller is liable for. Any additional taxes including supplemental taxes must be paid directly by the buyer. Supplemental taxes will be due if the taxable value of the property changes from what it was under the previous owner. If there are supplemental taxes you will be notified by a letter from the County Tax Collector. This letter probably will not arrive until several months after escrow closes.
You will be assessed supplemental taxes from the moment the house is transferred to you until the start of the next tax year. After that date you’ll pay the normal tax rate based on the property tax assessment.
If you have any further questions, let us know and we’ll be happy to provided you with an answer.