Orange County Tax Collector Scott Randolph announced today that, following an analysis by the Florida Tax Collector’s Association, Florida taxpayers cannot prepay their property taxes under current Florida law. Randolph said his office has received hundreds of phone calls from taxpayers trying to prepay their property taxes following passage of the new federal tax bill.
Under the GOP tax bill, taxpayers who choose to itemize their deductions will now have a $10,000 cap on tax deductions for all state and local property, sales and income taxes. While Florida does not have income taxes, in markets where home prices and property taxes are higher, the cap means some taxpayers could face bigger tax bills next year.
The GOP tax bill also eliminates or scales back several other deductions affecting homeowners, including the personal exemption, deductions for mortgage interest, home equity loans, losses on personal property and moving expenses.
“The question of prepayment is the top tax-related question we’ve received since the law passed, and it underscores just how unpopular this law is,” Tax Collector Scott Randolph said. “A lot of families are starting to realize that they have been sold a bill of goods by Washington.”
According to media reports, taxpayers nationwide have been rushing to prepay their 2018 property taxes before the new tax bill takes effect on January 1, 2018. Prepayment would allow those taxes to be deducted from a taxpayer’s 2017 tax returns. While some governors of states like New York have taken steps to facilitate prepayment of 2018 property taxes, Florida has not.