Real Estate
Tredyffrin Township Cannot Accept 2018 Tax Prepayments
Residents have been looking to prepay 2018 taxes to reap benefits of deductions that remain in 2017. But officials cant accept prepayments.
TREDYFFRIN TOWNSHIP, PA โ Tredyffrin Township officials have released a statement on paying 2018 real estate taxes after the new tax bill was signed into law by President Donald Trump on Friday, Dec. 22.
Officials said the township cannot accept prepayment of 2018 real estate taxes as some residents try to pay before deductions are stripped in the new bill.
"The Township is prohibited by the Pennsylvania Local Tax Collection Law (specifically, 72 P.S. ยง5511.15) from collecting taxes that have not been assessed yet," the announcement states. "The Township does not issue the new tax assessment until January of 2018 and therefore cannot accept payments before that point in time."
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Residents in Tredyffrin โ and across the country โ have been looking to pay their 2018 taxes early to still reap benefits of deductions that remain pace during 2017.
>>>RELATED: Here's How Taxpayers Hope To Avoid A Hike In 2018
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However, the IRS noted that it will not allow any deduction in 2017 for 2018 property taxes unless those taxes were assessed and paid in 2017.
"In general,whether a taxpayer is allowed a deduction for the prepayment of state or local real property taxes in 2017 depends on whether the taxpayer makes the payment in 2017 and the real property taxes are assessed prior to 2018," the IRS said in a statement issued Dec. 27. "A prepayment of anticipated real property taxes that have not been assessed prior to 2018 are not deductible in 2017."
Township mill rates will not be set until the Jan. 2, 2018 township supervisors meeting, according to the announcement.
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