I have a loan which closed May 26, first payment due July 1. Loan has escrow for summer property tax, winter property tax, and homeowners insurance.
Summer taxes are not due until September, but bills are sent in July. We have them on the escrow statement to pay out in July, but I am wondering if they should be included in the prepaid section on the closing disclosure. But then, I second guess myself because they are not DUE within 60 days of the closing, we are just showing that we will be paying them in July.
So how is everyone else handling this?

It doesn't matter when bills are sent.
When are you paying the tax bill?
Do you really pay them out in July?
If the bill gets paid in September to meet the due date then that's the date you should be using for escrow calculations and no, you shouldn't be including it in the prepaids.

Truffle, we are paying the summer tax in July, and then the winter tax in December.
Thank you.

We pay taxes in various states and always go with the due date, not when the bills come out. That's the only way you really have consistency. When we figure taxes for properties in your state, we set up escrows based on the due date and pay when due, not before. That's why I answered the way I did above.

That makes sense. I am going to check with our mortgage department to see what their reasoning is.
Thanks.

Just a little fodder for support documentation: FNMA says in the first sentence under Escrow Accounts: (emphasis added)

Thanks Truffle.

I just wanted to piggy back off of this. What if the loan is closing in October and the first payment is in December along with our 2nd tax installment. Are we allowed to place the 2 months in the prepaids (October to December) to collect for the tax payment after closing or does the escrow cushion cover that?

If you have already accounted for the payment of the December tax bill from escrow (so that the initial escrow deposit made at consummation will be enough to cover that bill (less the December tax portion of the periodic escrow payment, but plus a two-month buffer), you would not also include a prepaid item for taxes. In other words, you don't charge at closing more than once for a month.

Thank you, John. I'm trying to find a way to explain this in LO terms that my company will understand. Right now, they're actually inputting the amount of what escrow's aggregate amount is taking out into the Prepaids section. The best answer they can give me is that it's an investor requirement,though they have yet to provide me with documentation or a name of an investor that would require this.