The property tax year runs from January 1 to December 31. The taxes on a certain house are $1,440 this year, none of which has been paid. If the house sells, not in a leap year, and the closing date is June 12, the
A) buyer owes the seller $796.93.
B) buyer owes the seller $643.07.
C) seller owes the buyer $796.93.
D) seller owes the buyer $643.07.

Question

Quizplus · Accepted Answer

Since the taxes are paid in arrears, the seller owes the buyer. The number of days from January 1 through June 12 is 163. The daily rate is 1,440 / 365 = 3.9452 × 163 (no.of days)= 643.07.

The Property Tax Year Runs from January 1 to December