"Closing on a Missouri Home This Fall: Who Pays the Property Tax Bill That Arrives in Late November?"

In many Missouri counties, the envelope from the county collector goes out in late November. On a home that changed hands in October, the name in the window can still be the seller's, and the address can be wherever the seller moved. The tax printed inside belongs to the home whose keys are now on your ring, and in Missouri the county looks to the home for it.

If you close on a Missouri home this fall, the seller's share of this year's property tax usually comes to you as a credit on your settlement statement, and you pay the full year's bill. Many collectors mail bills in late November, the tax is delinquent after December 31, and the bill stays with the home even when it carries the seller's name.

I'm Jeff Moran, a mortgage broker in Bluffton, South Carolina, originating since 1996, licensed in fifteen states, including Missouri, NMLS #483943, through C2 Financial Corporation. A fall closing in Missouri puts you right in front of the year's only tax bill, and I'd like you to know exactly where that money comes from and where it goes.

Who pays property taxes the year you buy a home in Missouri?

You pay the bill, and the seller pays you for their part of the year. Jefferson County's collector puts it this way: "in most instances" the seller's portion of the taxes is credited at the closing, and the buyer is responsible for the full year. The same page sends you to your settlement statement, or to the title company you closed with, for the details on your own purchase.

In practice, the seller's months show up as a credit that lowers the cash you bring to closing. The seller is paying you ahead of time for the stretch from January 1 to your closing date. Then, in December, the full year goes to the collector from your side, whether you write the check or your escrow account does.

Your purchase contract can split the year differently, and your settlement statement shows how yours was handled. Dade County's collector says the new owner is most often liable for unpaid taxes unless other arrangements were made at closing.

The Missouri tax bill stays with the home, whoever's name is on it

A Missouri real estate tax is owed by the property itself. Dade County's collector states that the tax liability on real estate remains with the property, and that the taxes are a lien. A lien is the county's legal claim on the home until the tax is paid.

The seller has already paid their share to you at the closing table, so the seller has nothing more to pay. If the November bill goes to the seller's old address and nobody opens it, the tax is still unpaid on the home you now own.

The name on the bill takes time to change. Jefferson County's collector explains that the name on a real estate tax bill can only be changed by recording a new deed. After a fall closing, your deed goes to the county recorder, and the collector's records catch up on their own schedule. How your deed gets recorded after a Missouri closing covers that step and how you confirm it. Until the records show you, the seller's name on a tax lookup is normal.

When are property taxes due in Missouri?

Missouri real estate taxes are billed once a year, near the end of the year they cover. The county offices below describe the same calendar, and it comes down to four dates between November and January 1.

Date	What happens	The county source
November	Bills go out. St. Louis sends a notice to every landowner, and Adair County usually mails in late November.	City of St. Louis Collector of Revenue, Adair County Collector
December 1	If no bill has arrived, both counties ask you to contact the collector's office.	Adair County, Jefferson County
December 31	The last day to pay. Jefferson County charges interest and penalty on a payment postmarked after December 31.	Adair County, City of St. Louis, Jefferson County
January 1	Unpaid taxes are delinquent, and St. Louis adds interest and penalty.	City of St. Louis

Adair County and the City of St. Louis both say the tax is delinquent after December 31. Jefferson County words the same line from the other side: real estate taxes are due December 31 and become delinquent on January 1. Both phrasings mean the tax has to be paid by December 31 for the account to stay current.

Your county collector can tell you the interest and penalty that apply to a late payment there.

If the Missouri tax bill never reaches you

The tax is due on the same date whether or not an envelope arrives. Clark County's collector says that failure to receive a tax bill does not relieve the obligation to pay taxes and the late fees that apply. Andrew County's collector says the same thing, and Jefferson County describes its bills as mailed as a courtesy.

You do not need the paper bill to pay. Jefferson County posts its bills on its website in November. If your county does not post bills online, the collector's office can tell you your current tax status when you call.

On a fall closing, I would plan on the bill possibly going to the seller. A short call to the collector in early December, with your address or parcel number in hand, tells you the amount and whose name it is under. Then you can pay it from the county's own figure.

Your escrow account and the Missouri tax bill

If your loan has an escrow account, your servicer pays the tax for you. Your servicer is the company that collects your monthly mortgage payment. The City of St. Louis collector says that when a lender pays your taxes through escrow, the bill is sent to the lending agency to be paid from that account.

A servicer on a brand-new loan may not have this year's bill for your parcel on file yet. I'd call your servicer in early December and ask two things: whether it has this year's bill for your parcel, and the date it plans to pay the county.

How an escrow account collects for taxes and insurance walks through the monthly deposits, the cushion and the yearly analysis. The bill on the listing can also differ from the bill that arrives in your name. If the seller was 62 or older and enrolled in a county's senior freeze, the Missouri senior property tax freeze article explains why that credit stays with the seller. Why your property taxes can change after you buy covers the rest of that gap.

A made-up example of the credit and the bill

Numbers below are made up to show the mechanism. The tax amount is invented, and nothing here is a Missouri average or a quote.

A client closes on a home in Kirksville on October 15 and pays her property tax herself, because her loan has no escrow account. The year's tax on the home is $3,650, which works out to $10 a day.

Tax for the year (invented)                   $3,650
Seller's days, January 1 to October 14           287 days
                                               ------
Credit to you on the settlement statement     $2,870

Full bill you pay by December 31              $3,650
Less the seller's credit                     -$2,870
                                               ------
Your share, October 15 to December 31           $780

Her title company works out the actual figure for a closing from the contract, so a real one can land a day or two differently. The credit lowers her cash to close by $2,870 in October. In late November the bill arrives with the seller's name on it, at her new address, for the full $3,650. She pays it in mid-December, and the year comes out right: the seller covered 287 days and she covered 78.

She kept the $2,870 in her savings account from closing day until the bill arrived, so the December payment came from the seller's credit plus her own $780.

Steps for a fall closing in Missouri

1. Before you sign, please ask your title officer to show you the tax line on the settlement statement and explain how this year's tax is being split. That line is the seller's credit to you.
2. On closing day, I'd set the amount of that credit aside, so it is there when the bill comes due.
3. In late November, you can check the county collector's website for your bill, or call the office, even if nothing has come in the mail.
4. By December 1, if no bill has reached you, please call the collector's office and confirm the amount and the mailing address on the account.
5. By December 31, the full year is paid, by you or by your servicer. If you pay by mail, the envelope needs to be postmarked by that date in a county like Jefferson.

Common mistakes on a Missouri fall closing

Treating the credit as extra cash. The seller's credit is the seller's share of a bill you are about to pay. It belongs to the December payment.

Waiting for the mail. The bill may go to the seller, and Missouri collectors say a missing bill does not change the due date. A lookup on the collector's site or a call to the office in late November settles it.

Counting on the seller to forward the bill. The seller already paid their part at closing. Forwarding your bill is a courtesy, and the tax is owed by the home either way.

Paying a bill your servicer is already paying. If your loan has an escrow account, a call to the servicer confirms who is paying, so the county does not receive the same money twice.

Writing the tax credit and closing-cost help as one number. The seller's prorated tax credit, meaning the seller's share of the year counted by the days they owned the home, and any seller-paid closing costs are two different things. Whether the prorated tax credit counts against the seller concession limit explains why they belong on separate lines of your contract.

Planning your Missouri purchase around the December bill

If you are buying in Missouri, I would rather build the tax line in your payment from the county's own figure for the address than from an estimate. A Missouri pre-approval is where I review your income, debts and credit with your documents in hand. The Missouri mortgage page covers what else is particular about a closing here, including the title company's role.

Run your numbers and you will see rates for your scenario, your debt ratio and closing costs priced for Missouri. No credit pull, no account, nobody calls you. If you would rather talk it through, you are welcome to call me, and we can go over the tax credit, the December bill and your escrow account together.

Nothing here is a loan approval, a denial, a commitment to lend, or tax or legal advice. The county collector bills and collects the tax, and your title company and settlement statement show how it was handled on your purchase.

Common questions

When are property taxes due in Missouri?

Missouri real estate taxes are due by December 31 of the year they cover. Adair County and the City of St. Louis both say taxes are delinquent after December 31, and Jefferson County says they become delinquent on January 1, which is the same deadline. Bills generally go out in November, and Adair County usually mails in late November.

Who pays Missouri property taxes when a home sells in the fall?

In most Missouri closings the seller's portion of the year is credited to you at closing, and you pay the full year's bill. Jefferson County's collector describes it that way and points to the settlement statement for the details. Your purchase contract sets the arrangement, so it is worth asking your title company to walk you through the tax line before you sign.

Why does my Missouri property tax bill have the seller's name on it?

The collector's records may not show the new owner yet when bills are printed. Jefferson County's collector says the name on a real estate bill can only be changed by recording a new deed. The tax is still owed by the home, because Dade County's collector states that the liability on real estate remains with the property.

What happens if I don't receive my Missouri property tax bill?

The tax is still due by December 31. Clark County's collector says that failure to receive a tax bill does not relieve the obligation to pay the tax and the late fees that apply. Jefferson County asks you to contact the collector if no bill has arrived by December 1, and Jefferson County posts its bills on its website in November.

Do I pay my Missouri property tax myself if I have an escrow account?

Your servicer pays it from the escrow account. The City of St. Louis collector says the bill is sent to the lending agency to be paid through escrow. After a fall closing, a call to your servicer in early December confirms it has this year's bill for your parcel and the date it will pay.