An Ohio property closes on September 15. Annual property taxes are $5,400 and are paid in arrears. Using a 360-day year, what is the seller's property tax proration credit to the buyer (January 1 through September 15)?
Correct Answer
D) $3,825.00
Using a 360-day year (30 days per month): January through August = 8 months × 30 = 240 days. September 1-15 = 15 days. Total = 255 days. Daily rate = $5,400 ÷ 360 = $15/day. Seller's credit = 255 × $15 = $3,825.00.
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