Tax prepayment fever not gaining much traction here

Despite the plethora of news stories about folks across the country scrambling to prepay their 2018 property, state and municipal taxes by today ahead of when the new GOP tax bill takes effect, local town clerks and tax departments say that's not the case here in the Greater Rochester area.

In fact, Lebanon, Maine, town clerk Dale Fisk said she hasn't taken a single call from residents inquiring about prepaying anything.

Meanwhile, in Rochester and Milton, officials say there's been only scant interest.

A worker in the Rochester tax office said they'd taken between five and 10 2018 property tax prepayments in the past couple of weeks.

In Rochester residents can prepay their taxes up to two years after the City Council approved the measure a few years ago.

Most of the interest in such prepayments is generated because under the new tax law passed last week, deductions for property tax, state and local taxes are capped at $10,000.

So if you're paying less than $10,000 in those three categories collectively, there's nothing to gain by prepaying anyway.

David Menard of Foundations Accounting of Farmington said on Thursday that it's also required in many cases that you have been billed for such taxes.

Menard advised that you check with your state, municipality and tax preparer before seeking to prepay any taxes.

In Milton, town clerk Michelle Beauchamp said less than a dozen residents had come in to Town Hall to ask about prepayment but none had actually prepaid any 2018 taxes as of Thursday.

In Milton it is legal to prepay property taxes within a fiscal year, but again, Beauchamp urged anyone considering such a move to consult with their accountant or tax preparer.

The biggest driver of the prepayment frenzy is high tax states like New York, Massachusetts, New Jersey and California where in some communities the majority of property tax bills are well over $10,000 annually. For those individuals prepaying - if it is allowed - can bring them a one-time savings of thousands of dollars.

Menard said many of his customers have called to ask him about the new tax bill and the prepayment option, but he doesn't expect there will be any largescale rush in New Hampshire or Maine.

"The important thing is to check with your tax preparer to make sure you qualify," he said.