UPDATE - Prepayment of 2018 County Property Taxes in 2017

Here's updated information regarding the prepayment of  Montgomery County property taxes:

The Internal Revenue Service issued an Advisory on December 27, 2017, that states, “A prepayment of anticipated real property taxes that have not been assessed prior to 2018 are not deductible in 2017.” Montgomery County tax assessments are made each July—the 2018 tax assessment will be made in July 2018.

Please see the guidance from the IRS here.

The County continues to advise taxpayers to consult their own tax advisor about the tax consequences of making a prepayment of the taxpayer’s 2018 County real property taxes on their federal income tax return.

Residents who still want to prepay their 2018 County real property taxes may do so by mail or in person; however, the County still encourages residents to pay by mail.

As stated in the County’s Notice of Intent document, in accordance with law passed by the Montgomery County Council on December 26, 2017, there can be no refunds until there is a 2018 tax bill for your account, the prepayment of 2018 tax is posted to your 2018 tax bill, and the prepayment exceeds the amount due on the 2018 Real Property Consolidated Tax bill.

Residents seeking to make prepayments in person may do so Monday through Friday between the hours of 8 a.m. to 4:30 p.m. at the Treasury office located at 255 Hungerford Dr., Rockville.

Only checks and cash will be accepted as a prepayment of 2018 County property taxes.

Send or deliver your payment to:

Department of Finance
Division of Treasury
ATTN: 2018 Prepaid Property Taxes
255 Rockville Pike, Suite L-15
Rockville, MD 20850

For more detailed instruction and required supporting documentation, you should visit the County’s Finance Department’s homepage at montgomerycountymd.gov/finance/ or https://apps.montgomerycountymd.gov/realpropertytax/.

Release ID: 17-439 
Media Contact: Ohene Gyapong 240-777-6507

Council Enacts Legislation for Prepayment of 2018 Property Taxes in 2017

Today we approved Bill 42-17, Property Tax Advance Payment — Authorized.  This bill enables county residents the option to prepay their 2018 property tax this year. Here is the full press release and links to the county website with detailed instructions:

The Montgomery County Council held a special legislative session today to enable residents to prepay their 2018 county property tax in 2017.  By a 7-1 vote, the Council enacted Bill 42-17, Property Tax Advance Payment — Authorized.  The bill gives county residents the option to prepay their 2018 property tax this year.   The bill requires the county to refund any amount paid that is greater than the property tax owed and would permit the county to bill the property owner for any amount of the prepayment that is less than the 2018 property tax once it is finally determined.

 “Creating this prepayment option may open the door for many middle-class county residents to get a final year of benefit from deducting their property tax on their 2017 federal tax return,” said Council President Hans Riemer.  “Initial speculation was that only the most affluent residents could take advantage of this option. But with the benefit of public input, we now know that the prepayment option will be a potential benefit to thousands of county residents of more average means.”  

 Maryland tax law authorizes the governing body of a county to enact a law permitting taxpayers to make an advance payment of county property tax.  State law requires that the advance payment must be the full amount of county property tax owed for the prior year. 

 On Dec. 22 President Trump signed the federal Tax Reform Act into law. The act will limit the deduction for state and local income, sales, and property tax to $10,000 beginning in 2018.  The advance payment of 2018 property tax before the end of 2017 may be deductible for some taxpayers on their 2017 federal income tax return.

 Montgomery County’s Finance Department encourages county taxpayers who intend to prepay their 2018 property tax this year to mail their payment.  The county is providing information on the websites of the county, the Finance Department, and the Council, and also via the Paperless Airplane and Regional Services Center newsletters and on social media.

 Before mailing a payment, residents must print a Notice of Intent form located on the websites, fill it out, sign it, and mail it with their payment to the Treasury Office: 255 Rockville Pike, Suite L-15, Rockville, MD 20850.  

 State law requires that residents who intend to prepay their property tax must pay the full amount of their 2017 county property tax.  If residents owe property tax for the current or prior years, the payment will be applied to any past due amount before it is applied to any advance payment.

 Residents are encouraged to consult with their tax advisor to understand whether prepaying their 2018 property tax this year will benefit their tax situation.  Montgomery County makes no representation as to whether the prepayment may be deducted for federal income tax purposes.

 Instructions and more information on property tax prepayment for 2018 can be found at:

http://montgomerycountymd.gov/finance/Resources/Files/2018_prepay/Property_Tax_Prepayment_Info_V2.pdf

Submissions must include a signed Notice of Intent form, which can be found at:

http://www.montgomerycountymd.gov/finance/Resources/Files/2018_prepay/Notice_of_Intent.pdf  .

A checklist for prepaying 2018 property taxes can be found at:

http://www.montgomerycountymd.gov/finance//Resources/Files/2018_prepay/Checklist_flyer.pdf  .

The Council Will Meet Tuesday, December 26 at 10:00 a.m. Regarding Prepayment of Property Taxes

The County Council will meet in special session on Tuesday, December 26 at 10:00 a.m. to take up legislation enabling the prepayment of property taxes. Here's the full press release:

Montgomery County Council to hold special legislative session to enable residents to prepay their County property taxes, on Tuesday, Dec. 26 at 10 a.m.

Introduction, public hearing, and vote is scheduled for Expedited Bill 42-17, Property Tax – Advance Payment – Authorized

ROCKVILLE, Md., Dec. 23, 2017—On Tuesday, Dec. 26 at 10 a.m. the Council will hold a special legislative session to enable residents to prepay their County property taxes. Expedited Bill 42-17, Property Tax – Advance Payment – Authorized, would authorize the advance payment of County property taxes. A public hearing will follow the introduction of Bill 42-17. A vote is scheduled immediately after the public hearing.

Maryland tax law authorizes the governing body of a county to enact a law permitting taxpayers to make an advance payment of county property tax. The advance payment is "calculated by applying the current county property tax rate to the assessment of the taxpayer’s property for the prior year."

Bill 42-17 would require Montgomery County to refund any amount paid that is greater than the property tax owed and would permit the County to bill the property owner for any amount of the advance payment that is less than the real property tax finally determined.

"This bill is a response to the just-enacted federal tax reform act," said Council President Hans Riemer. "One of the act’s many problematic features is to limit the deductibility of state and local taxes on federal returns to $10,000 starting in 2018. While some other jurisdictions permit prepayment of property taxes, current Montgomery County law does not.

"Earlier this week the Council concluded that the prepayment option raised many serious questions," said Riemer. "Tax advisors are divided on whether prepayments would actually be deductible in 2017.

"Nevertheless, we must act," said Riemer. "This problem was created by the federal government’s reckless tax bill. These are not ordinary times. Like other jurisdictions, we must do what we can to ease the burden on our residents. Only they can determine whether prepayment is the right decision for them, but we should ensure that they have the opportunity to make that decision."

On Dec. 22 President Trump signed the Tax Reform Act into law. The act will limit the deduction for state and local income, sales, and property tax to $10,000 beginning in 2018. The advance payment of 2018 property tax before the end of 2017 may be deductible for some taxpayers on their 2017 income tax.

Information about how residents can prepay their property taxes will be provided by Executive Branch staff at the Council meeting on Tuesday and through additional communications.

The public hearing on Expedited Bill 42-17, Property Tax – Advance Payment – Authorized, will be held in the Third Floor Hearing Room of the Council Office Building, which is located at 100 Maryland Avenue in Rockville. The meeting will be televised live by County Cable Montgomery (CCM) on Cable Channels 996 (high definition) and 6 (standard definition) on Comcast; Channels 1056 (HD) and 6 (SD) on RCN; and Channel 30 on Verizon. It also will be available live via streaming through the Council web site at http://tinyurl.com/z9982v8

Individuals who want to testify at the public hearing on Expedited Bill 42-17 should email Councilmember.Riemer@montgomerycountymd.gov. The deadline to submit a request to testify is Dec. 26 at 7 a.m. Sending a request to testify does not guarantee a slot on the Council’s speakers list. Speakers for the public hearing will receive email confirmation notifications by no later than 9 a.m. on Dec. 26.

The Council is also accepting written testimony. Individuals should submit written testimony to County.Council@montgomerycountymd.gov.

A copy of Expedited Bill 42-17 and the Council staff report is attached or can be obtained by calling 240-777-7910. Council President Riemer’s full statement on Expedited Bill 42-17 is also attached. 

Holiday Schedule for Christmas and New Year's

Here's the County's holiday schedule for the Christmas and New Year holidays:

Montgomery County government will observe the following holiday schedule for the Christmas and New Year’s holidays:

County Offices – Closed December 25 and January 1

Libraries – Closed December 24, 25 and January 1

County Liquor stores (DLC) – December 24 and December 31, all DLC stores will open 10 a.m. – 6 p.m.  Closed December 25 and closed January 1

Recreation – Aquatic, community recreation and senior centers are closed December 25, and January 1.  For complete details on facility closures and modified schedules between December 24 and January 1, visit www.montgomerycountymd.gov/rec

Montgomery Parks - For operating schedule, visit www.MontgomeryParks.org

Ride On – Sunday schedule (Riders can access the route schedule).  Ride On services end at 10 p.m. on December 24

Metrorail – Information available at www.wmata.com

Metrobus – Information available at www.wmata.com

TRiPS Commuter Store at Silver Spring Transit Center – Closed December 25 and January 1

TRiPS Mobile Commuter Store – Closed December 25 and January 1 

Refuse/recycling pickup – No collection December 25 and January 1. Collection will be one day later for the week of December 25 and January 1

The Shady Grove Processing Facility and Transfer Station – Facility will close at 3 p.m. on December 24 and 31. Closed December 25 and January 1

Parking at public garages, lots, curbside meters – Free


State offices and courts – Closed Monday, December 25 and Monday, January 1

Council Receives Update on the County's Fiscal Plan

Yesterday the Council’s agenda included an update on the County’s Fiscal Plan. We heard that our revenue estimates have turned out to be too high. That’s why the County Executive will be sending us his proposed savings plan for this fiscal year, through the end of June, 2018. We should receive the Executive’s proposal within the next two weeks. You can learn more from the Council’s staff packet  and watch yesterday’s Council session to hear the questions we asked. Stay tuned for more updates.

Council Elects New Leadership

Congratulations to our new Council President, Hans Riemer and our new Council Vice President, Nancy Navarro. We will have two very talented leaders at the helm in the coming year, and I feel optimistic about our future. Best wishes Hans and Nancy! You can read the full press release here.

Youth Town Hall

I couldn’t be happier with this year’s Youth Town Hall meeting. Nearly 300 students and young residents of Montgomery County were in attendance on Wednesday, November 29. My colleagues and I spoke with many students individually while others asked the full Council questions about important issues affecting their lives. Some topics discussed included bullying prevention, gang activity, pre-k education, issues affecting minority students, school overcrowding and overall safety in schools. I want to thank everyone who attended and I was especially impressed with the thoughtfulness of the questions we received. If you couldn’t attend, you can still watch it here.