Not to be confused with a Tax Lien Certificate, a Tax Certificate is a comprehensive document that outlines the individual taxing authorities for a property and its history of taxes. This includes details like the taxing jurisdiction, exemption amount, and current tax rate.
Additionally, a Tax Certificate provides property assessment details and a summary of the amounts from the current tax year (with or without exemptions).
A Tax Certificate will show an unpaid balance with the local taxing authority, or authorities, in the case of states like Texas where taxes are collected by more than one.
Ordering a Tax Certificate helps:
- Determine what taxes the homeowner will pay
- Verify what taxing districts a property is located within
- Verify which (if any) municipal utility providers are paid through the property taxes
- Uncover any debt owed to a municipality that may not be recorded as a lien yet
- Show any tax liens on the property