Overview
When a closing date falls near the property tax bill release date, the financial calculations for both buyer and seller change dramatically depending on whether that bill has been issued. The Tax Bill Toggle feature lets you instantly adjust prorations, credits, and escrow funding requirements to reflect real-world conditions at closing. This eliminates manual recalculations and ensures accurate figures for all parties.
Before You Start
Requirement | Details |
Active deal | Must have a deal with property details and closing date entered |
Property tax information | Know the approximate release month for the property tax bill in your jurisdiction |
Closing date | Closing date must be set, especially if it falls near tax bill release time |
Step-by-Step: Adjusting the Tax Bill Toggle
1. Navigate to the Deal's Escrow Section
Open the deal you're working on
Locate the escrow account or closing cost breakdown area where property taxes are displayed
2. Identify the Tax Bill Toggle
The toggle controls whether calculations assume the tax bill has been released or not.
Toggle Position | What It Means |
On (Tax Bill Out) | The tax bill has been released before closing |
Off (Tax Bill Not Out) | The tax bill has not yet been released at closing |
3. Understand the Financial Impact
⚠️ Important: The toggle position significantly changes who owes what at closing. Always verify the actual tax bill status before finalizing figures.
When Tax Bill Is Out (Toggle On):
Seller pays the tax bill in full
Buyer pays a proration back to the seller for the portion of the year they'll own the property
Escrow account requires minimal initial funding (typically 2 months of taxes)
When Tax Bill Is Not Out (Toggle Off):
Seller provides a credit to the buyer for their prorated share of property taxes
Buyer will be responsible for paying the full tax bill once released
Escrow account requires heavy initial funding to cover the upcoming bill
During the Transaction
Communicating with All Parties
Scenario | What to Tell Clients |
Closing before expected release | Explain that figures may need adjustment if the bill releases earlier than anticipated |
Closing after expected release | Confirm the bill status and set the toggle accordingly before generating final disclosures |
Release date unknown | Prepare scenarios for both positions so all parties understand potential variations |
Monitoring Tax Bill Status
Check with the county assessor or tax office as closing approaches
Update the toggle position once you have confirmation
Recalculate and redistribute updated figures to all parties
Finishing Up
1. Verify Before Final Disclosures
Confirm the actual tax bill release status with the county
Set the toggle to match real-world conditions
Review the calculated prorations and escrow amounts
2. Document the Scenario
Note in your file which toggle position was used at closing
If closing near a release date, document the uncertainty communicated to all parties
Quick Reference
Check tax bill status → Set toggle position → Review prorations and escrow amounts → Communicate changes to all parties → Finalize closing figures
Tips for Success
Know your local release schedule—property tax bills typically release at predictable times each year, so build this into your timeline planning
Prepare both scenarios when closing dates are borderline—showing clients both outcomes builds trust and prevents last-minute surprises
Watch the numbers update instantly—the system recalculates prorations and escrow funding automatically when you toggle, so verify changes before sharing
Communicate early and often—buyers and sellers appreciate knowing that figures may shift based on tax bill timing
Related Topics
Setting Up Property Tax Information in a Deal
Understanding Closing Cost Prorations
Escrow Account Funding Requirements
Working with County Tax Release Schedules