New Construction Property Taxes
If you purchased a new construction home, you may find that your first couple of property tax bills are lower than what was estimated at closing, depending on your taxing authority’s billing schedule.
- A common reason for this is that the property has not yet been assessed to include both the land and home, resulting in a lower tax bill amount.
- The tax amount used to set up your escrow payment will be the last known tax amount, which is usually a lower amount because it is based on a “land only” value assessment.
IMPORTANT: Because of this lower value assessment, we may return excess funds to you as an escrow overage after an escrow analysis. This does not mean that the taxes will not increase to the full land and home assessed value during the following tax period, causing a possible shortage in your escrow account and/or resulting in a supplemental tax bill.