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:
Submissions must include a signed
Notice of Intent form, which can be found at:
A checklist for prepaying 2018
property taxes can be found at:
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