Taxes to close on a house (Sarasota: loan, home sales, transfer)

[WItoFLgirl]

Hi all, we are working on buying a home in Sarasota, and I have had different banks give me different numbers for taxes. On a 264,000 home, the taxes with our current bank are $3000. I am assuming this number should not change with the banks, and there is some type of set %. Does anyone have any thoughts, or know the current %? Thanks!

[Big House]

Originally Posted by WItoFLgirl

Hi all, we are working on buying a home in Sarasota, and I have had different banks give me different numbers for taxes. On a 264,000 home, the taxes with our current bank are $3000. I am assuming this number should not change with the banks, and there is some type of set %. Does anyone have any thoughts, or know the current %? Thanks!

Welcome to the board!

There are lots of people here that like to offer help and useful infromation. :-) So if you have any questions feel free to ask away!

No, taxes are established and collected by the county tax office. The amount is not going to vary between banks, but it can vary if time passes because they will be prorated at the time of closing. The yearly amount can change if the tax office increases them. But that is not done by the bank.

The bank can require proof that you have made those payments if you have a loan out on the property.

The seller is responsible for all taxes due prior to the closing date, even if they haven't been paid years before. The payment will be made at the time of closing and will be deducted from the proceeds of the sale. The buyer will be responsible for the taxes for the balance of the current year.

You can call the county tax office and they will tell you what the taxes are on any property.

[davery5872]

Originally Posted by Big House

The seller is responsible for all taxes due prior to the closing date, even if they haven't been paid years before. The payment will be made at the time of closing and will be deducted from the proceeds of the sale. The buyer will be responsible for the taxes for the balance of the current year.

How can the seller pay 2010 taxes at closing when that tax amount isn't decided until the fall?

[Big House]

Originally Posted by davery5872

How can the seller pay 2010 taxes at closing when that tax amount isn't decided until the fall?

They are determined based on the amount due from the tax rate. A formula that is posted in the tax office for each property. The taxes for the property can be accurately determined based on that rate. Then if 55 days of taxes are due at the time of closing, that is what is subtracted from the selling proceeds and the seller has to pay his amount, and the buyer has to pay the balance of the year. It is all spelled out in the HUD which the title companies prepare when they prepare the closing documents. They also will review the calculation in detail for you. Anyone can call the tax office and find out what the tax rates are, and what they were for the previous years.

[davery5872]

Originally Posted by Big House

They are determined based on the amount due from the tax rate. A formula that is posted in the tax office for each property. The taxes for the property can be accurately determined based on that rate. Then if 55 days of taxes are due at the time of closing, that is what is subtracted from the selling proceeds and the seller has to pay his amount, and the buyer has to pay the balance of the year. It is all spelled out in the HUD which the title companies prepare when they prepare the closing documents. They also will review the calculation in detail for you. Anyone can call the tax office and find out what the tax rates are, and what they were for the previous years.

And what if the rate changes?

[Oobie119]

You can also zillo the property and see what the taxes were last year and do the figuring...

[WItoFLgirl]

Thanks for your replies, but I'm sorry, I have misled you on my question. This is a different type of tax due at closing, in addition to the yearly tax rate. On the good faith estimate they call it a transfer tax and it says these charges are for state and local fees on home sales. My regular yearly state taxes are on another line of the good faith estimate.

[Big House]

Originally Posted by WItoFLgirl

Thanks for your replies, but I'm sorry, I have misled you on my question. This is a different type of tax due at closing, in addition to the yearly tax rate. On the good faith estimate they call it a transfer tax and it says these charges are for state and local fees on home sales. My regular yearly state taxes are on another line of the good faith estimate.

Those charges are probably filing and other fees that the jurisdiction charges then, and would most likely be very close to being the same between the banks, but they would also be a one time charge, not an on-going yearly charge.

That's OK about how you ask a question. It was a good question anyway, and other people are interested in learning how that works as well. I'm sure you'll have a lot of questions if you're planning a move, feel free to ask. Many of us are friends here, and like to help.

[WItoFLgirl]

Thanks BigHouse. I found the answer on the Florida department of revenue website. it is 0.7% for the seller and 0.35% for a buyer on the cost of the mortgage, plus sarasota taxes. It comes out to half what the bank has on our good faith, which is good news.

[Big House]

Originally Posted by WItoFLgirl

Thanks BigHouse. I found the answer on the Florida department of revenue website. it is 0.7% for the seller and 0.35% for a buyer on the cost of the mortgage, plus sarasota taxes. It comes out to half what the bank has on our good faith, which is good news.

Sweet! You go to FLgirl! ;-) And I'll be along shortly!

Hey! My flirtatious humor is back! I couldn't find it for a day or so!