Tax Proration Info

Jason O’Connell
  • 1087 Newell St, PO Box 885
    White Cloud, MI 49349

  • (231) 689-7230
    (231) 689-7292

The tax bills are sent to the owners of record as of July 1st and December 1st, and that person is required to pay the tax bill levied.

However, the question of proration of taxes is another question. Public Act 277 of 1968, which deals with the proration of taxes is entirely unrelated to how, when, and for what period property taxes are assessed, levied or collected. Public Act 277 of 1968 merely provides a method of settling accounts between private parties to a real estate transaction in the absence to a contrary agreement.

What Public Act 277 of 1968 says is:

"In any real estate transactions between private parties in the absence of any agreement to the contrary, the seller shall be responsible for that portion of said annual taxes levied during the 12 months immediately preceding, but not including, the day title passes, from the levy date or dates to, but not including, the day title passes and the buyer is responsible for the remainder of such annual taxes."

The Treasury Department further clarifies, “levy date” to mean July 1st for summer bills and December 1st for winter bills which are the days on which any general property tax becomes due and payable.

For example, if the seller sells the property to the buyer, on October 2, and there is no agreement between the buyer and the seller concerning the taxes, taxes will go to the buyer on the levy date December 1 the same year.

The township/cities of Newaygo County do not send a prorated tax bill as of July 1 or December 1 of any year. A full tax bill is sent out and any adjustment will be made at the time of the sale of property between the buyer and seller which will be a private transaction.