SAN DIEGO (CNS) - San Diegans are rushing to beat a looming change resulting from the recently enacted federal tax reform bill that limits the deductibility of property and other assessments, county Treasurer-Tax Collector Dan McAllister said Thursday.
The property owners are impacted by a provision in the bill, signed into law by President Donald Trump last week, that caps state and local tax deductions at $10,000 for those who itemize their returns.
The change unleashed a flood of homeowners wishing to prepay their property tax bill before Jan. 1, so that this year's tax rules would apply, allowing a higher deduction.
McAllister said compared to this time last year, 22,000 more bills had been paid, as of Wednesday night.
Roughly 18,000 payments arrived in the six days after the tax law was signed, amounting to about $80 million, he told City News Service. He said that in a similar period last year, 3,000 payments were received, totaling $14 million.
"The number of payers is up, the dollar amount is up," McAllister said. "We take it as a good sign, as people are doing things that will help them down the road."
He said he estimates that the county could receive an additional $60 million over the next three days. Treasurer-Tax Collector offices are open on Friday, and electronic payments can be made over the weekend.
On Wednesday, the IRS informed tax professionals that deductions will be accepted for prepayments that apply to 2018 as long as the local government assesses and bills the property this year.
The county of San Diego mails its bills in early October and provides for two installments, one normally due Dec. 10 and the second on April 10. The early payments being made now are to make sure the second installment is deductible -- if the taxpayer believes his or her state and local tax deductions will climb over the $10,000 threshold.
Deductions won't be accepted for paying anticipated property taxes that haven't yet been assessed or billed, such as for the 2018-19 fiscal year, the IRS advised.
Financial experts say taxpayers should consider whether prepayment would put them over the figure where the Alternative Minimum Tax would kick in, or if they already pay the AMT, which would negate any prepayment benefit. It's also suggested that homeowners consult with their mortgage-holder if they pay their property taxes via an escrow account, so they don't accidentally pay their property tax twice.
McAllister recommended that San Diegans talk to their tax preparer, CPA or financial adviser before paying their bill early. He said that after consulting his adviser, he made a prepayment himself.
He said the best way to pay is by using a free e-check online at sdttc.com
Seasonal weather as we approach the end of May. Temperatures slightly below average and an overcast morning set to scatter by the afternoon.
The San Diego Community Review Board of Police Practices on Tuesday once again took up the issue of a controversial chokehold.
A threat to Tierra Del Sol Middle School in Lakeside has turned up no evidence of validity, authorities said late Tuesday night.
Most people are familiar with action cameras that record HD video. Now the technology has advanced and 360 cameras are flooding the consumer market.
The Trump administration has been looking to open the waters off California to oil drilling, but several cities in San Diego County have pushed back.
The Crossroads of the West gun show is a popular draw and big moneymaker for the Del Mar Fairgrounds, but gun control advocates are calling for an end to the shows in the wake of recent school shootings.
A slow-moving brush fire blackened about 50 open acres east of Pala Casino Tuesday, sending plumes of smoke over northeastern San Diego County.
A sheriff's deputy accused of groping a teenage girl while standing behind her in a Vista fast-food restaurant line pleaded not guilty Tuesday to charges of committing a lewd act on a 14-year-old and accessing a computer to look up information on the case.
Election season is right around the corner, and that means a flood of campaign ads and letters are popping up in people's mailboxes.
San Diego City Councilman Chris Cate on Tuesday announced he has reopened the high water bills saga to look into how to prevent water meter misreads and accidental high bills in the future.