Want to pay your taxes early in Merced County to avoid changes? You’re out of luck

“Quite a few calls” have been rolling in to the Merced County tax collector’s office from residents considering paying their estimated taxes before a tax-code overhaul takes hold, but officials say most California taxpayers are out of luck.

In some states, city and county officials are dealing with what they say is an unprecedented surge of property owners paying taxes early, as homeowners – particularly in predominantly Democratic states with high local tax rates – try to avoid the effects of the tax-code overhaul signed last week by President Donald Trump.

That bill, which takes effect in 2018, limits the amount of state and local tax payments people can deduct from their federal taxes to $10,000. The provision was one of the most contentious in the tax bill shaped by Congressional Republicans, with critics saying it would unfairly penalize residents of blue states and cities with a heavy local tax burden.

In Merced County, as in much of blue state California, property owners can only pay for what’s already been billed to them, according to Karen Adams, the county’s tax collector. Paying estimated taxes for 2018 or other future bills is out of the question.

“We do not accept estimated taxes,” Adams said on Thursday. “We are only accepting the second installment of your secured property taxes due Feb. 1.”

The second installment must be paid no later than April 10, she said.

Tax-related fears have been dramatically illustrated this week in the Washington, D.C., region, as hundreds of homeowners have lined up at tax offices to pre-pay their property taxes for 2018 before the limit on deductions kicks in.

The Internal Revenue Service confirmed Wednesday that taxpayers will be able to take advantage of the maneuver — but only under limited circumstances. The IRS said that taxpayers can claim an additional property tax deduction when paying their 2017 taxes if they pay the tax this year and if the local tax authority has notified homeowners prior to 2018 of how much they owe in property taxes, known as a tax assessment. State and local laws vary as to when this occurs.

For individuals who rushed to prepay their property taxes based on estimates about how much they’d owe, the decision could prove a frustration as it may be difficult to cancel those payments.

Merced Sun-Star reporter Thaddeus Miller contributed to this report.

This story was originally published December 28, 2017 at 3:29 PM with the headline "Want to pay your taxes early in Merced County to avoid changes? You’re out of luck."