Prepaying Your 2018 Village Real Estate Taxes

A steady stream of articles and emails has circulated over the last few days concerning “tax strategies for New Yorkers under the new federal tax code.”  Many pundits suggest prepaying 2018 real estate taxes in 2017 in the hope that this will help offset some of the adverse effects of the $10,000 cap on deductions for state and local taxes in 2018.

Governor Cuomo stepped into the mix last week when he issued a letter attempting to make prepayments possible only for Counties and Towns that have a January 1, fiscal year.  Villages are not included in that letter because most villages in NY State, including the Village of Cedarhurst, have June 1 fiscal years.   Therefore the Village of Cedarhurst, like other villages, is unable to accept the prepayment of 2018 Village real estate taxes.

The Town of Hempstead Receiver of Taxes announced that he will accept the prepayment of the second half 2017/2018 school tax.  Payments can be made online at this link:  https://www.toh.li/online-tax-payments.  However, there is no assurance that the prepayment of these taxes in 2017 will qualify as a deduction on your 2017 federal income tax return.   That is an issue that will be determined by the Internal Revenue Service.

Yesterday, the Hempstead Receiver of Taxes announced that his office will not be able to mail general tax bills (for County and Town taxes) before the January 1 deadline for the prepayment of 2018 general taxes.   Today we received the following additional information from him:

The Receiver’s phone lines (516-538-1500) are swamped and his staff cannot respond to the avalanche of emails.    However, there are other ways to get your tax billing information.

You can visit the Receiver’s office at 200 N. Franklin Street in Hempstead.  Extended office hours are 8:00 am to 6:00 pm, through Friday, December 29th.  The office will also be open from 9:00 am to 5:00 pm on Saturday and Sunday.

Temporary tax receipts will be issued to taxpayers making payments in person.  Permanent receipts will be mailed subsequently. Those who mail payments that are postmarked prior to January 1 will be return-mailed receipts with the postmarked date as the payment date.  For more information, see this link https://www.toh.li/news/1834-urgent-holiday-tax-message-clavin-accommodates-early-payment-of-property-taxes-homeowners-clamor-to-pay-before-new-federal-tax-code-takes-effect-seek-to-deduct-payments-in-2017

This is a rapidly evolving situation.  We will try to update our website whenever we receive additional information.

NOTE:  The Village of Cedarhurst is not offering any advice regarding the tax implications of paying next year’s taxes in 2017.  As with all such matters, we recommend that you consult with your accountant or tax attorney for specific tax advice.