Cook County’s recent decision to delay property tax late fees is welcome news for area homeowners who have been financially impacted by COVID-19.

On May 13^th, local officials announced that property owners will essentially have until Oct. 1 to pay their second-installment tax bills, which would normally be due Aug. 3. The measure is expected to pass when the Cook County Board of Commissioners meets on May 21. While the payment deadline itself has not been extended, interest fees for late payments will be waived until Oct. 1, helping alleviate some financial strain.

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Taxes may be the last thing on your mind as you advance through the homebuying process. Yet, there are important tax considerations that need to be worked out before you get to the closing table. One of those considerations is property tax proration.

Property tax proration is a way to split property taxes fairly to ensure that each side is paying for the specific time that they were owners of the property. Since Illinois property taxes are paid in arrears, tax proration ensures that the buyer is fairly compensated for the tax bills they will receive after the closing, for the period in time in which the seller still owned the property.

Your real estate broker can help you better understand what tax proration is, how it works, and how it is calculated. Once you have a home under contract, your real estate attorney will work with the seller’s attorney to determine the exact amount due to you during the attorney review process.

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