Join Date: Feb 2007
Location: New Jersey
Thanked 71 Times in 69 Posts
Rep Power: 9
Re: Previous owner wants property tax credit?
I believe, that the Lien is assessed to the individual not the boat. The individual that owned the " unsecured" property on January 1st. Any proration of the tax due is a private matter. The taxing authority is only interested in who owned the property on the assessed date.
It sounds like this should have been a separate line item in the sales contract and that any money carved out to pay taxes should have been placed in escrow to satisfy the tax bill when it came due.
I understand the rationale of fairness..and that you may need to call upon the sellers experience in the future etc. How much money are we talking about?
On the other end... when the new owner goes to sell the boat, you now know to put a clause in the contract regarding the tax or factor it in to the price.