Prorated taxes are the current year's property taxes split between buyer and seller at closing, based on how much of the tax year each one owned the house. The split is set by the contract rather than a statute, so the method can vary between deals. Tennessee adds interest on unpaid property tax starting March 1 each year, worth checking if a closing lands near that date.
Why it matters
A closing that lands near the tax deadline can shift a real amount of money depending on how the proration is written.
In Tennessee: Tenn. Code Ann. § 67-5-2010. This can work differently in another state.
General information, not legal or tax advice.