Christie orders towns to accept 2018 property tax prepay

28 December, 2017, 01:08 | Author: Genevieve Gibbs
  • Town of Hempstead Receiver of Taxes Don Clavin

Hutchinson said responsibility for paying property taxes is handled at the county level. Submissions must include a Notice of Intent for Prepayment of Levy Year 2018 Taxes.

Under the national Republican plan, homeowners will be able to deduct state and local property taxes up to $10,000. Not surprisingly, more than 68 percent of those polled said they are at least slightly likely to seek an increase in tax deductions or credits during the 2017 tax year to counter changes in the tax bill. Payments made by mail that are postmarked on or before December 31, 2017 qualify as being prepaid, as well as online payments made by 11:59 p.m. December 31. The Montclair Tax Collector's Office will open for five hours on Saturday to handle the demand.

So the rush is on to pay next year's property taxes early.

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The last few days of December are typically quiet for Lidia Leszczynski, Montclair's tax collector.

"It's frustrating that Pennsylvania laws and processes make it so hard to be able to take action that would benefit both the taxpayers and the county, school district and municipalities that would receive tax revenue early", Benz said.

The IRS hasn't yet said how it would handle prepayments. Among other provisions, the law limits the state and local income tax, sales tax and property tax deductions for those who itemize to $10,000 beginning in 2018.

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In New York, Democratic Gov. Andrew Cuomo signed an executive order Friday allowing New Yorkers to prepay their 2018 taxes to local governments and schools by January 1 and claim the deduction on their 2017 taxes. Some families, such as those who have paid off their homes, would maximize deductions one year and file the short form the next to take advantage of both methods. "In my view we should make property taxes on our state income tax returns completely deductible in response to what the federal government has done". "We anticipate the city and towns will be prepared to collect prepayments as directed". In general, whether a taxpayer is allowed a deduction for the prepayment of state or local real property taxes in 2017 depends on whether the taxpayer makes the payment in 2017 and the real property taxes are assessed prior to 2018. "Many taxpayers will not be able to come up with thousands of dollars suddenly between Christmas and New Years Day to pay taxes in advance".

Those who pay their property taxes with an escrow account should contact their mortgage lender to see if the company can pre-pay their taxes for them. "In the very next line, the tax bill gets rid of most personal exemptions".

New York State Conference of Mayors Executive Director Peter A. Baynes said, "As the capping of the SALT deduction has become a painful reality for New York, our city and village leaders have been doing all they can legally to allow full or partial prepayment of 2018 property taxes in 2017".

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