And no, that isn’t a reference to our local NFL team! While working with an international client that didn’t fully comprehend the various bills associated with owning a property in Buffalo, NY, it was discovered that several of their tax bills were delinquent. Luckily, it was caught in time, but that client could have lost their property to foreclosure if they were not careful! Please share this post, reference it often, and be sure that all your bases are covered so the same doesn’t happen to you! (Please note that these dates are accurate for the 2011-2012 tax billing period and may be subject to change.)
- City of Buffalo Taxes are billed in two halves. The city taxes also include your school taxes. A bill is sent out at the beginning of July which contains stubs for both halves of your city taxes as well as your sewer rent (addressed below). The first half of the taxes are due August 1, and the second half is due January 3.
- City of Buffalo Sewer Rent is billed once every year, and is due September 30.
- City of Buffalo User Fee is billed quarterly. A bill is sent out at the beginning of July which contains 4 stubs, one for each quarter. This bill covers refuse & recycling collection inside the city of Buffalo, and is based on the number of refuse & recycling totes you have assigned to your property. These bills are due August 15, November 15, February 15, and May 15.
- City of Buffalo Water is billed quarterly, based on usage. The cycles vary depending on the area of the city. Water billing is outsourced to Veolia.
- Erie County Taxes are billed once yearly. This bill is due February 15.
Don’t forget to keep INSURANCE on all your properties. If you are using the property as an investment, be sure to have a landlord’s policy in place and encourage your tenants to have renter’s policies.
If you have a mortgage on your property, many mortgage brokers require an escrow account be put in place to ensure taxes are paid if you don’t put 20-25% down on your property. In some instances, banks are now requiring escrow accounts for ALL mortgages. Mortgage brokers will insist on the escrow account as a way of protecting their investment. They roll everything in to one payment for the consumer, called a PITI payment. The PITI payment covers Principal, Interest, Taxes, and Insurance.
A mortgage will generally be the first lien against the property. In the event that a tax bill, sewer bill, user fee bill, or water bill goes unpaid, the city or county can put a lien against the property AHEAD of the mortgage. This means that if the property is foreclosed on and the sale price only covers the government’s lien, the mortgage broker is left holding a note.
Keep in mind that most mortgage brokers do NOT include the water bill or the user fee bill in the escrow, and that these must be paid separately.
Knowing and understanding the bills you will face as a property owner will help you prepare well ahead of time to prevent surprises! Stay informed!
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