No, you can’t prepay your taxes to avoid the new law’s deduction cap

The adoption of the tax cut bill has some people wanting to pay their property taxes early. In Florida, you can’t.

The new law, which goes into effect New Year’s Day, puts a limit as to how much in state and local taxes people can deduct from their federal income taxes at $10,000.

But because the year’s property taxes are based on Jan. 1 appraisals, and millage rates won’t be set until September, residents can’t pay taxes each year until November. It’s a 10-month process and they haven’t been assessed yet for 2018.

Manatee County Tax Collector Ken Burton Jr. said about a quarter of the calls, or 79, his office received this week were about property taxes.

“This doesn’t impact most people. It impacts a small percentage,” Burton Jr. said. “The average homeowner doesn’t pay over $10,000 in property tax.”

A large majority of those calls have been from out of state, he added. Those who live up north with second homes in Florida have been told by their accountants, Burton said, to see if they can pay ahead so they don’t have to be subject to the deduction cap in 2018.

Residents are able to take advantage of an option to pay taxes ahead in part, but they have to sign up by the end of April. The earliest installment they can pay would be in June.

Other tax collectors offices in Florida counties, like Hillsborough, have received similar calls.

This story was originally published December 22, 2017 at 4:06 PM with the headline "No, you can’t prepay your taxes to avoid the new law’s deduction cap."