Homeowners across country rush to prepay their 2018 property tax today, here's why you should too
Counties throughout Southeast Minnesota saw a surge in early payments of property taxes this week.
As the new Republican tax law kicks in on January 1, 2018, homeowners across the country are rushing to prepay their 2018 property tax, way ahead of their due date. People are doing so in hopes of putting off one effect of 'The Tax Cuts and Jobs Act' which President Donald Trump signed into law last week.
The Republican tax overhaul caps at $10,000 the amount of state and local taxes that filers can deduct from their federal tax bill. This means that for those people whose tax bills exceed the particular amount regularly could benefit by paying more taxes this year. The tax deduction has no limit in 2017.
Post Bulletin reported that counties throughout Southeast Minnesota saw a surge in early payments of property taxes in an attempt to cash in on the deduction one final time.
"My tax person was looking out for me," the news outlet quoted a Rochester resident as saying. He said that his tax assistance called him and alerted him of the potential advantage of paying early property taxes.
Simple tax advice: If your property tax bill is in excess of $10,000, pay it NOW.— Kurt Eichenwald (@kurteichenwald) December 16, 2017
But if you are not Republican, and want a good laugh: Guess which state gets hit the hardest from drop in property tax deduction? Your friends in Texas. They are in for a big shock.
The director of Olmsted County's Property Records and Licensing Office, Mark Krupski, however, said that state income taxes cannot be paid early, but property owners can benefit by prepaying their local property taxes to increase the deductions this year.
"This is probably the only piece you can do," Krupski said. The director also added that the Olmsted County office witnessed a steady stream of people coming in ever since the Republican tax law was signed, according to reports.
The news outlet stated that the Olmsted office took in $600,000 in 2018 property taxes so far this week while nearly $1.25 million was paid in advance taxes last week.
From day one, I made it clear that I wanted to work across the aisle to cut taxes for New Jersey families and businesses. This Tax Hike Bill went the other way and actually raised taxes on us in NJ— gutting our State and Local Tax deduction and our property tax deductions. pic.twitter.com/NOuTkR85GR— Rep Josh Gottheimer (@RepJoshG) December 21, 2017
Other counties in Minnesota also saw a similar surge in the filing of property tax in these two weeks, according to reports.
A Goodhue County property tax division staffer said that the office reportedly saw more prepaid taxes being filed on Tuesday than it generally does throughout the month of December.
New York is not sitting by idly as GOP tax plan targets us.— Andrew Cuomo (@NYGovCuomo) December 22, 2017
I am signing an Emergency Executive Order to urge counties to send 2018 property tax bill now before year end so New Yorkers can pay now and keep their deduction. https://t.co/c4yVvwm13X
Auditor/Treasurer Denise Anderson of Wabasha County said that her officer took in $100,000 in prepaid taxes by 2 p.m on Tuesday. She compared the amount received to the $139,000 prepaid taxes, which were collected throughout the whole year in 2016.
Although many people are rushing to pay their property taxes early, Dodge County's finance director Lisa Kramer, said that "people fall into different categories," adding that their income is a big factor in determining whether they should opt for this option.
Hundreds of people in line at the Fairfax Govt Center. They'll be prepaying their property tax, since the new tax law caps property tax deductions at $10k. pic.twitter.com/Z4sKUoIBnh— Neal Augenstein (@AugensteinWTOP) December 26, 2017
Reports state that people who are subject to the alternative minimum tax, known as AMT, will possibly not benefit from paying early taxes. This means that people with higher incomes will likely not get a call from their tax assistants encouraging them to pay early.
People itemizing by more than $24,000 will possibly not see an advantage in paying their property taxes early.
Trump’s new tax plan is going to be hard for many of our working families, but this might help: New Yorkers can prepay their property tax and they get a discount when they do.— Bill de Blasio (@NYCMayor) December 23, 2017
If you have any views or stories that you would like to share with us, drop us an email at firstname.lastname@example.org