The buyer and seller both pay property taxes, due at closing. Generally, the seller will pay a prorated amount for the time they've lived in the space.Refund or rebate of real estate taxes. Taxes are prorated as though paid in advance with the seller being responsible for all tax levies made prior to, but not including, the date of closing. Your mortgage lender might pay your real estate taxes from an escrow account. If so, they'll send you Form 1098. The Collection Services Bureau is responsible for the collection of all delinquent state tax accounts for the State of Michigan. You can complete these copies online for furnishing statements to recipients and for retaining in your own files. Specific Instructions. If you pay your mortgage statement, you can set up your real property tax to be taken out of escrow.