Counties Moving Quickly To Enable Property Tax Prepayments

A number of counties are revising their property tax prepayment policies with very quick legislative and administrative action, in response to tax reform’s cap on the state and local tax deduction going into effect January 1.

On Tuesday, the Montgomery County Council passed legislation enabling prepayments of property taxes. The Council had previously decided not to take action for fear it would result in errors and lack of transparency in the legislative process.

Also this week, Wicomico and Somerset took action to enable property tax prepayments. The Somerset County Commissioners approved the action on Tuesday, like Montgomery.

The Prince George’s County Council just announced that it will break from its recess to consider emergency legislation on Thursday to authorize the County to accept prepayments of 2018 county property taxes. The Washington County Commissioners will meet on Friday to discuss the same.

The moves come in response to the portion of Congress’s tax reform bill which caps the state and local tax deduction at $10,000. The idea of paying property taxes early in 2017 might, potentially, enable some itemizers to deduct all of their local property taxes before the cap goes into effect on January 1, 2018. At least 10 Maryland counties already accept property tax prepayments. Many of those counties have seen spikes in early filings before the end of the year, or at least, expressions of intent to file early.

The Prince George’s County Council session will begin on Thursday, December 28 at 11 am in the County Administration Building, Council Hearing Room, 14741 Governor Oden Bowie Drive in Upper Marlboro.