How are property tax prorations typically handled at a NH real estate closing?
Correct Answer
B) Taxes are divided between buyer and seller based on the closing date, which is especially significant given NH's high property tax rates
At a NH real estate closing, property taxes are prorated between the buyer and seller based on the closing date, so each party pays only for the portion of the year they owned the property. This proration is particularly significant in NH because the state has some of the highest property tax rates in the nation — a result of relying heavily on property taxes to fund local services in the absence of a broad-based income or sales tax. NH property taxes are billed semi-annually, so the proration must account for the billing cycle.
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