Property Tax Primer: Fast Facts Related to Federal Income Tax Overhaul

CLEARWATER, FL – As lawmakers hammer out a proposed federal income tax overhaul, Pinellas County Tax Collector Charles W. Thomas is offering his top three tips for taxpayers regarding the bill’s potential impact on property tax deductions.

Currently, property owners can deduct property tax payments from their federal taxable income. The proposed legislation, however, includes a $10,000 limit on property tax deductions.

  1. Property owners cannot prepay 2018 property taxes in 2017. While many financial advisors recommend prepaying 2018 property taxes now, this is not allowed in Florida. Florida law allows tax collectors to begin collecting 2018 taxes on November 1, 2018. Taxpayers who sign up for the 2018 installment plan – splitting property taxes into quarterly payments – begin paying slightly earlier, with the first installment accepted in June 2018. In addition, the U.S. Treasury Department advises that 2018 prepayments will not be tax deductible for 2017 federal income taxes.
  2. Haven’t paid 2017 property taxes? Pay in December and receive a discount. Property owners will receive a 3 percent discount on property tax bills paid in December. The discount drops to 2 percent in January and 1 percent in February. There is no discount for property taxes paid in March. The deadline to pay 2017 property taxes is March 31, 2018.
  3. Pay property taxes online. Tax collector offices are especially busy the week between Christmas and New Year’s. Avoid lines by paying property taxes online here. There is no additional charge for paying by electronic check.

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ABOUT THE PINELLAS COUNTY TAX COLLECTOR’S OFFICE: The Pinellas County Tax Collector’s Office is a constitutionally elected office. Responsibilities include collecting and distributing state and local taxes and providing driver license and motor vehicle registration services to Pinellas County residents. The Office received the 2013 Governor’s Sterling Award and the 2016 Governor’s Sterling Sustained Excellence Award for performance excellence. For more information visit www.taxcollect.com/news.