Escrow & Title
At an Oregon real estate closing, the closing statement shows a debit to the buyer for prorated property taxes. This means:
AThe buyer has already paid the taxes for the full year and is being reimbursed
BThe buyer owes the seller for property taxes the seller pre-paid that cover a period after the buyer takes ownership✓ Correct
CThe buyer must pay an additional tax to the Oregon Department of Revenue
DThe seller receives a credit for taxes paid
Explanation
Oregon property taxes are typically paid in arrears (in November and May installments for the July 1 fiscal year). If the seller has pre-paid taxes covering a period after closing, the buyer is debited (charged) for their share and the seller receives a credit. If taxes are unpaid through the closing date, the seller is debited for their portion and the buyer receives a credit to cover future tax payment.
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