NYS Tax Department – Prepayment of 2018 Property Tax

H.R. 1, known as the Tax Cuts and Jobs Act, which both houses of Congress passed on Dec. 20 starting for 2018 capped the State and local taxes deduction (affectionately known as SALT) : for individuals to deduct up to $10,000 ($5,000 for married taxpayers filing separately).  The big question is will 2018 State and local income taxes be deductible in 2017, we address this in a follow-up article.  But will 2018 Real Estate taxes be deductible in 2017 in New York State, the answer is yes if the locality issues a warrant for collection.  Andrew Cuomo current NY Governor addressed this in a 12/22/17 Executive Order below.

NYS Tax Department: Governor’s message regarding prepayment of 2018 real property tax

Executive Order signed 12/22 allows 2018 property tax prepayment

Governor Andrew M. Cuomo has signed an emergency Executive Order that will allow New Yorkers to prepay next year’s property taxes this year, before the new tax law takes effect. Payments must be postmarked by December 31, 2017. For more information, contact the tax collector for each client’s county.

The order authorizes localities to issue warrants for the collection of early property tax payments and to accept partial payment—allowing New Yorkers to pay a portion or all of their 2018 property taxes before the end of the year to keep the deductibility.

Who to contact regarding prepayment eligibility

Check with each client’s tax receiver to see if your clients are eligible to make an early payment. The deadline is December 31, so you must act quickly.

Deadline for prepayment

Payments made by mail and postmarked on or before December 31, 2017, will be considered timely. If their county accepts online payments, your clients may pay online until 11:59 p.m., Sunday, December 31, 2017.

For more information, see Executive Order #172



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