There are two ways to handle the sale of a property receiving tax relief.
Option 1: Jan 1 - Sep 30 (Before the Weber County tax system goes final for the year.)
Option 2: Oct 1 - Dec 31 (After the Weber County tax system goes final for the year.)
Call 801-399-8400 or 801-399-8486 with any questions.
OPTION 1 (Jan - Sep)
These steps apply before the tax system goes final for the year.
- Prorate taxes normally.
Calculate taxes due from the Buyer and Seller normally as if there was no tax relief on the property.
- Submit the Tax Relief Property Sold form.
Immediately after closing, it is the Seller’s responsibility to submit to the Weber County Clerk/Auditor the Tax Relief Property Sold form to let us know about the change. At that time, we will remove the property tax exemption from the property, and we will expect to receive the full amount of taxes due in November.
- Escrow and pay taxes normally as if there was no tax relief on the property.
After the taxes are paid in November, Weber County will send a check to the Seller with an amount equal to the tax relief benefit they qualified for. Information the Seller provides on the Tax Relief Property Sold form tells us where to send the check.
If the Seller does not submit the Tax Relief Property Sold form before our tax system goes final, we are not otherwise notified that the property sold, and the exemption will remain on the property. If that happens, then Weber County will only expect to receive the reduced amount of taxes due in November.
We cannot go back and make adjustments at this point, so the Seller essentially “gave” the Buyer their tax relief benefit for the year as part of the sales transaction. Weber County cannot provide further compensation to the Seller since the County already granted a benefit in the form of reduced taxes, even though that benefit was essentially “transferred” to the Buyer that year.
OPTION 2 (Oct - Dec)
After the tax system goes final, a proration must be handled at closing. You may use either the simple approach or the complex approach. They both give the same result.
- Determine the Buyer's prorated portion of taxes as if there was no tax relief.
- Find out how much Weber County expects to receive with tax relief on the property. (Call us or look it up at http://www3.co.weber.ut.us/psearch/ )
- Look at the difference between those two numbers. Determine if there is money left over, or if there’s not enough.
- a. If there is money left over after paying Weber County, give the rest to the Seller.
- b. If there isn’t enough money to pay Weber County, take the additional amount from the Seller.
Why This Works:
- The Buyer pays exactly what they would if there was no tax relief on the property. No more, no less. (It should be transparent to the Buyer that there is tax relief on the property. It should not affect them at all.)
- Weber County receives exactly what they expect to with tax relief on the property. No more, no less. (The Seller qualified for tax relief, so this is all Weber County expects to receive this year. If we receive extra, it should go to the Seller anyway.)
- With the other two numbers fixed, the only variable is the Seller. This simple approach ensures that the Seller either pays the extra that tax relief doesn't cover, or they receive their full tax relief benefit for the year, even though they are selling their property before the end of the year.
- Download the Proration Calculator Excel spreadsheet.
- Have the parcel number handy, then call the Weber County Clerk/Auditor at 801-399-8400. Tell them that you are a title company working on the sale of a property receiving tax relief, and that you need to know the following information:
- a. Assessment charge (this is the initial tax amount)
- b. Direct charges without tax relief
- c. Amount of tax relief
- Enter those three numbers, plus the number of days remaining in the year, in the yellow data fields in the Proration Calculator.
- Line 14 will show the net amount due from the Seller (or due to the Seller if negative). Line 15 will show the net amount due from the Buyer.
- Escrow and pay the total due to Weber County as shown in line 16.