New Rochelle lets homeowners prepay taxes before tax overhaul
New Rochelle is looking to soften the blow from the tax overhaul by allowing homeowners to prepay some taxes.
In the new legislation, tax experts say many blue state homeowners, including New Yorkers, could see a tax hike because their state, local and property tax deductions are being capped. Starting next year, deductions for state and taxes will be limited to $10,000.
New Rochelle residents were lined up Tuesday at the city's tax office to prepay both school taxes and annual city taxes before the new federal tax bill becomes law next year.
Pace University tax professor Phil Cohen says paying 2018 taxes now may not be a bad idea.
“It’s worth investigating because you're going to lose that deduction if you attempt to take it in 2018, because it’s capped at $10,000. In 2017, you have a potential window of opportunity,” he says.
New Rochelle officials insist they are not guaranteeing a windfall to homeowners who pay their taxes early. They simply want to offer it as an option.
Officials say residents should consult an accountant before they pay their bill to make sure it makes sense for them.
Those who plan to prepay taxes must pay on or before Dec. 31 this year.