County: Property tax law changes in 2018, but most will be unaffected

PHOENIX – President Donald Trump’s new tax plan kicks off in 2018, causing some Valley residents and people around the nation to pay their property taxes early.

But Ryan Boyd with the Maricopa County Assessor’s Office said the changes probably won’t affect most Maricopa County taxpayers.

“With the recent tax reform that creates a deduction cap of $10,000 for your state and local taxes in general,” he said. “It won’t affect too many people primarily because of the low property taxes that you see compared to other states such as California or New York.”

Most Maricopa County taxpayers pay an average of $2,000 a year for property taxes.

“It might affect the wealthier people in the state, wealthier home owners, wealthier areas like Paradise Valley,” he said.

But Boyd said the average property tax payer won’t see much of a difference from the average amount taxed in 2017.

Here is some FAQ provided to KTAR News 92.3 by the Maricopa County Assessor’s Office:

Property taxes and tax reform

The Tax Cuts and Jobs Act (H.R.1) was signed into law on Friday, December 22. Under the Tax Cuts and Jobs Act, the state and local tax deduction is significantly changed for tax years beginning after December 31, 2017.

2017

Currently, an individual or married couple can deduct the all of their state and local property taxes and also all of either their state and local income taxes or sales taxes.

2018

Under the Tax Cuts and Jobs Act, an individual can only deduct $10,000 of their state and local property and either state and local income or sales taxes.

Can I prepay my property taxes?

You can pay the second half of your 2017 property taxes before they are due. You may also pay an amount toward your 2018 property taxes, but the amount due will not be known until budgets are set in August of 2018.

Pre-paying 2018 local and state property taxes may be deductible under certain circumstances, according to the IRS. Though, the Assessor’s Office and Treasurer’s Office can not endorse any payment tactic and do not provide tax advice.

If you have questions on what may be the best strategy for paying your property taxes, that would be best answered by a licensed tax professional.

If you choose to pay your 2018 property taxes, you can pay by check or certified funds accompanied by a valid parcel number that is delivered and payable to the Maricopa County Treasurer’s Office at 301 W. Jefferson Street Suite 100, Phoenix, AZ, 85003. You may also pay your 2018 property taxes in person at the above address.

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