ARLINGTON, VA (WUSA9) - Some people are rushing to pay 2018 state and local property taxes by the end of the year.
That's because once the new tax reform bill becomes law, you will no longer be allowed to deduct state and local property and income taxes over $10,000. That's a new cap on the deductions.
The law prohibits pre-paying income taxes, but you can do it for property taxes, if your state allows it.
In Maryland, it's up to each county to pass legislation to accept pre-payment.
County spokespersons in both Montgomery and Prince George's Counties say its too late to make the changes so prepayment won't be allowed.
It's a different story in Howard County, which will accept prepayment, but the resident must state that its for future financial obligations.
D.C. and Virginia allow prepayment of taxes.
In Arlington County, many people have already pre-paid their property taxes. Most of them fully own their homes and pay their property taxes directly to the county.
"I'll get a 15 percent return on my investment. That's better than my bank account," said one Arlington resident who did not want to be named.
Most property owners have mortgages they're paying off.
Kim Rucker, Arlington's chief deputy treasurer says people desiring to prepay their property taxes need to contact their mortgage company and their local treasurer.
"We do need to set their account up so that we can accept a 2018 payment so that its handled properly. It's not normal. We want to make sure it doesn't just get refunded," said Rucker.
Arlington resident Gary Gray had already contacted his mortgage company.
"I send the mortgage company a copy of the receipt. The mortgage company will then refund all the monies collected for the first installment of the taxes. They have to keep collecting that escrow. So, at the end of the year, I'll send them another copy of the receipt and they'll refund the rest of it," he said.
Car taxes can also be pre-paid.
Basically in Virginia, you can prepay any amount you want. If you overpay, the treasurer office should roll it over to the next year.
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