Red Bank has joined Belmar, Jersey City and other New Jersey municipalities in encouraging residents to consider reducing the impact of the newly adopted federal tax plan on their wallets.
How? By prepaying local property taxes before the end of 2018.
The borough issued this statement Friday afternoon:
Mayor Pasquale Menna has announced that the Tax Collector of the Borough of Red Bank will be accepting pre-collection of 2018 Real Estate Tax Payments by residents who may be adversely affected by the Federal Government’s drastic changes that will be signed into law.
Real estate taxes paid to municipalities are currently entirely deductible but, starting next year, taxpayers may only be able to deduct up to a total of $10,000 in all taxes (real estate and state income tax combined) to other taxing authorities. Mayor Menna strongly advises residents to immediately consult with their accountant or financial advisor to protect their interests.
In a Friday afternoon post on Facebook, Menna wrote this:
As a result of the Federal Administration’s Tax Law changes, today I authorized an advisory to all our residents and positing on the web site that Red Bank residents, after consultation with their financial advisor and CPA, who are adversely affected by the tax law changes, may prepay their 2018 real estate taxes. The Finance Office will be accepting payments until 5 PM on December 28, 2017 if in person; or though our web payment if made and concluded by 12/31/17. Please refer to our web site for details.
This was done to try to assist those residents adversely impacted by the Trump Administration changes in the tax code.
Borough Clerk Pam Borghi tells redbankgreen that, prior to the announcement, no one would have been prohibited from paying 2018 taxes this year.
“This is not necessarily a new policy,” she said via email. “I believe the Mayor just wanted to let people know that it is an option for them and what the deadlines are in order to have the payment credited in 2017.”
Because of the Christmas and New Year’s holidays, property owners who want to prepay in person will have to do it before 4 p.m. today (Friday) or on Tuesday, Wednesday or Thursday during normal borough office hours.