It has been everywhere the last few days, but let me break this down in a way that’s easy to understand for everyone.
The newly approved federal Republican tax-cut bill limits the SALT deduction (state and local taxes to include property tax and income tax) to $10,000.
This can potentially crush people who live in high income high tax states, like MD (granted the brackets are a little different).
Because of that, MoCo passed a bill to allow prepayment of property taxes (for tax year 2017) to get the deduction this year, since the new law goes into effect in 2018. The payment must be received in person or postmarked by January 1st.
Some people think the IRS may not allow this since the 2018 property tax assessment letters aren’t mailed out until July, but it’s worth a shot in case the county attorney can find a loophole to save some money this year since there currently no SALT limit.
Here is more information, from the county, on how and when to prepay your property tax if you choose to:
UPDATE FROM THURSDAY EVENING (12/28/17): http://www2.montgomerycountymd.gov/mcgportalapps/Press_Detail.aspx?Item_ID=21701
Comment from Roger Berliner below: