In Colorado, the seller is responsible for paying property taxes due up until, but not including, the day of closing. Technically, real property taxes become due on January 1st following the year for which they are assessed. The 2008 taxes are charged the seller and adjusted on the closing statement. The seller is also liable for the #of days of real property tax that they held the property in 2009. The 2009 taxes are prorated between the seller and the buyer on a 365 day basis. The seller will essentially pay the buyer for the # of days they own the property not including the settlement date...later when 2009 taxes are due the buyer will pay the full amount...Double check the HUD 1 to make sure this is correct. - Tue Jan 6 2009, 19:25