With President Trump's new tax plan expected to impact property tax deduction limits, the City of Rye is moving to accept pre-payment of 2018 city taxes, provided the city council adopts the new budget at its meeting this Wednesday, December 20th.
The current tax bill would keep the itemized deductions for state and local taxes, but would cap the deduction at a combined $10K for property and either income or sales tax. Many Rye residents would no longer be able to deduct large amounts from their federal taxes.
Check with your tax advisor, but here is the current state of affairs from the city manager:
PREPAYMENT OF CITY TAXES
Rye, NY, December 15, 2017– The City of Rye will be accepting prepayment of City Taxes.
Marcus Serrano, City Manager of the City of Rye announced today that the City has been receiving a number of requests for prepayment of City taxes. Mr. Serrano stated even though the City is not obligated to collect the prepayment of City taxes, the City is always trying to serve its taxpayers and he is pleased to be able to accommodate these requests from the residents. Mr. Serrano has been working with the Finance Department, IT Department and the software vendors to implement the necessary changes to allow for the prepayment of taxes. Mr. Serrano stated that the requests are based on the proposed tax law changes. Mr. Serrano wanted to make it very clear that even though the City taxes may be prepaid, the question of deductibility is a question that must be answered by a tax preparer. Therefore Mr. Serrano stated that “the City of Rye makes no claim, nor bears any responsibility for the deductibility of the pre-payment of property taxes. You should consult your tax professional for further information”. Mr. Serrano also stated that the City can only collect the prepayment of City taxes and not School or County taxes.
Mr. Serrano stated that this process is dependent on the City Council adopting the budget before December 31st. If the City Council adopts the budget on December 20th the City’s website will be updated to allow for the prepayment of taxes starting on December 22nd. Individuals should go to the City website if they wish to prepay. The City’s website will have a link that will take you to a site that will provide you with instructions on how to prepay and the amount of the City tax. The City’s website is http://www.ryeny.gov/.
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