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Loudouners show ‘tremendous’ interest in prepaying property taxes

With President Donald Trump’s signing of the tax reform bill, officials with the Loudoun treasurer’s office say they've seen a tremendous amount of interest in the prepayment of the county’s real and personal property.

People across the country are considering prepaying taxes because taxes paid in 2018 may not be deductible in the 2017 tax year, according to the IRS. Loudoun County Treasurer Roger Zurn (R) said in a statement that his office will accept prepayment of real estate and personal property taxes in accordance with state law.

Zurn also urged county residents to consult their tax advisors before prepaying taxes.

In just one day since opening for prepayments, the treasurer’s office has seen 1,321 people pay $6,768,872.69 in early real estate and personal property tax payments. Of those, 399 visited the office to prepay personal property taxes and 922 went for real estate taxes, Zurn said.

Yesterday, Zurn shared an IRS tax bulletin in response to the increased interest in prepayment, and he reminded residents Loudoun does not assess real property until the first part of February, effective Jan. 1, and the board will set next year's tax rate in April.

According to the IRS bulletin, whether a taxpayer is allowed a deduction for the prepayment of state or local real property taxes in 2017 depends on whether the taxpayer makes the payment in 2017 and the real property taxes are assessed prior to 2018.

A prepayment of anticipated real property taxes that have not been assessed prior to 2018 are not deductible in 2017. State or local law determines whether and when a property tax is assessed, which is generally when the taxpayer becomes liable for the property tax imposed, the bulletin said.

The IRS reminds taxpayers that a number of provisions remain available this week that could affect 2017 tax bills.

IRS.gov has more information on these and other provisions to help taxpayers prepare for the upcoming filing season.

Comments


The Waterford Foundation has over $6,000,000 in assets and does not pay taxes.  They run an Internet business, wedding business, have done major land subdivision projects, rent buildings…  and pay themselves $$$ well.  Even worse, Geary Higgins (with Randy Minchew and Dick Black’s involvement) gave them $150,000 so they could “repair their finances”.  Glad to see Randy Minchew has been voted out.  Time to get rid of the rest of the pork crowd.


Don’t care what I’m paying so long as the crying liberals snowflakes are upset!  WE ARE WINNING 2018!


Enough with political chit chat - why not deal with the basic question this article raises? Is the current real estate assessment system fair or not. Ask yourself a simple direct question regarding your property. If you listed it for sale today would you receive net of all costs the amount you are currently assessed for? If not then the tax system being applied to property owners in Loudoun is unfair and you are being over taxed! Obviously this question would be very easy for the HHMI, Hospitals and other non-profits as they don’t even pay the 28% of the property tax rate specifically allowed by state statute in Loudoun. By this exclusion we are all overpaying as these large entities are not paying their share. WE can fix the local issues and with all the complaints we can’t fix the federal issues so my suggestion for the new year is that local issues which we should control are controlled! Make noticeable efforts to LOWER THE Loudoun PROPERTY TAX RATE to the average paid in the state of Virginia by eliminating the state composite index or don’t run for office!
Bob OHneiser Esq.


LoudounClear, as with similar commenters on this board, you post zero facts, just opinions.  Yet you accuse others of getting their news from broadcast channels.  Really?

Rather than reading “a blog from someone I disagree with”, why don’t you do the same thing I do.  Search out non-partisan reports (CBO, CRS, etc.) and research original sources.  But that would require you to conduct your own analysis.  Most of those “blogs” you suggest take your approach and present zero facts whatsoever.

And ALWAYS conduct a sanity check on your assumptions.  It’s indisputable that the avg corporate tax rate is about 23% (this includes those deductions or “tax breaks” as you like to call them).  The marginal corporate rate was 35% before this bill.  Corporate tax revenues per year are $330B.  So even if corporations’ avg rate was equal to the marginal rate of 35% (no deductions), it would only increase corporate tax revenues by about $120B, which wouldn’t make a dent in the $500-1000B/year deficits.

Meanwhile, compare that to Medicare spending ($672B), Medicaid spending ($565B) or SS ($916B).


55% disapprove of tax scam despite alternative facts.  failed tax scam experiment in kansas now forced on nation by gop - what could possibly go wrong?  waltons, mercers, kochs, sinclairs are happy tho

plutarchy

the > 5 lies per day “prez” sets new record - 24 in 30 min = 1/ 75 sec.

345 days, 115 at own properties, 90 at golf courses - each trip costs taxpayers > $3 million while self-dealing is rampant, secret service overtime pay maxed out in august

& we won’t follow omarosa’s order to “bow down” to wannabe dictator like those on right


SGP, if every dollar the US government spent outside entitlement funding was in the interest of all Americans, I think you’d see more people willing to drink the Paul Ryan kool-aid.

Many of us see crony capitalism, self-enrichment (Trump leads the pack on this one), giveaways to corporate interest and the wealthy…and suspect there’s sufficient $ in the tax breaks and sweetheart deals those sectors pull down to help get the national budget back in sync.

Pull your head out of the Fox news echo chamber and read a book or a blog by someone you disagree with.  Might be instructive.


For our local population of alt-lefters, nothing in the tax code forbids you from overpaying our government.  Therefore, please feel free to do so.  I have kids in college and will put my tax cut to good use.


It always amazes me how uninformed the Loudoun Left is.

First, wages are based on supply and demand.  But we must divide the economy into a goods-producing sector (which can be traded around the world) and a service-producing sector (which typically is provided locally such as hotels, construction, etc.).  The last 30 years have seen globalization of the goods-producing sector and since there are 7 billion workers as competitors, you can’t force those wages to rise.  However, the service sector WILL see a rise in wages as the supply of unskilled workers decreases (see Trump’s wall and policies on immigration).  In fact, we saw shortages of fast food workers in the 1990’s as the growth in the economy outstripped the supply of workers.  This is why it’s so crazy for blue-collar Democrats to support the open-borders Hillary’s of the world.  Hillary just wants more liberal votes from unskilled immigrants, to heck with the welfare of blue collar workers.

As to “subsidies”, maybe you should look up the word. (I assumed an LCPS teacher - Callme - with over two weeks off and nothing to do could at least look that up but again my expectations were too high).  A subsidy is a grant to a state/county to fulfill its (state’s) needs or a grant to an industry to keep its prices low.  A subsidy is not the purchase of goods/services for the federal gov’t.  Let’s look at the difference.

In Virginia, the state gives/grants $$ to counties to pay for the county’s educational system.  This is a subsidy.  Virginia gives more of a subsidy to poor counties than affluent ones like Loudoun.  Thus, when Hornberger or Greason asked the state to increase state funding for education so they wouldn’t have to justify Loudoun taxes, that hurt Loudoun citizens whose taxes would go to subsidize other counties. Both were advocating for policies that hurt Loudoun.

However, the federal gov’t purchases goods/service for its own needs.  When it pays military members or buys planes, it is not giving grants to the states for their own needs, but defending the entire country.  Using the Left’s logic, the federal gov’t is “subsidizing” Taiwan and Japan when it buys electronics from them (that’s nuts).  Buy a dictionary or learn to use Google, please!

In contrast, states raise taxes to spend on their own needs.  Since you could previously deduct state taxes from federal tax returns, a citizen who paid $10K in state taxes would avoid ~$3K in federal taxes (assume 30% rate).  Thus, the state’s tax only cost the citizen $7K.  Raising $20K in state tax would only cost the citizen $14K.  Now, without the SALT deduction, a state that charges $20K in taxes will cost that citizen $20K.  That SALT deduction was, by definition, a “subsidy”.

Much of the taxes raises/$ spent by the federal gov’t is a result of high earners and entitlements.  As more income is concentrated in fewer hands, tax revenues go up (they pay a higher rate).  Likewise, much of the transfers into states result from Medicare, Medicaid, and welfare.  If the Loudoun Left is ready to reform entitlements with Paul Ryan, let’s get going!!!  Reducing those transfers will save this country.

Finally, America has the richest “poor” people in the world because the nation is so affluent.  Freeloaders always do better among the rich. (no poor person in the US is asking to trade places with a poor person in India or Africa)  As the US economy grows, freeloaders will get more handouts.  I’m not sure why they want to bite the hand that feeds them.


Wow…you’re telling me that people are trying to avoid the impact of stupid tax policy enacted under the watchful eye of our reality TV president?  Who knew? Put bozos in charge of the country and it begins to fall apart.  #SoTireedOfThisWinning


It amazes me that the GOP party can support Trump…he has embarrassed this country on the world stage and says things you would choke on if your kids lied the way he does. For fun, we watched Fox the other day…OMG…they all look like deer in the headlight looks…they know that they are spouting falsehoods. How can you believe this guy you voted for? Are you really that stupid??


davisb - such a defeatist point of view.  Can’t fix the last 50 years but the last 8 were the worst and and made the 42 before it worse. If you live in Loudoun County you aren’t exactly suffering in life even if you aren’t “rich”, and would you care to point to some data about the growing “disparity” between rich and poor?  So much “sky is falling” and “OMG the rich are so evil” talk just has no basis.  How on earth would you know that “No one is going to see real wages grow except for the top”??  Unless you are a cpa or fed budget expert you are just repeating the whiny lib dem media rhetoric


Mod Loco - I completely agree, wise fiscal management by our govt is expected by us all.  I wonder, though, how long it will be before the left thinks there is now “extra money” that can now be thrown back into reduced or more entitlements (looking at you gov McAwful).  The left loves spending other peoples’ money as we all know


TrumpGirl - successful business make ALL of us successful eventually: - have you forgotten what has happened in the country the last 50 years?  The disparity between rich and everyone else continues to grow.  Trump and his corporate welfare plan makes this even worse.  No one is going to see real wages grow except for the top


Girlfortrump: I hope they are not freaking out and just putting it aside for when the BoS figures out the budget. This definitely isn’t a windfall and I expect them to understand that. I do intend to keep an eye on the County and School’s budget process, as always.


Loco and moderately Loco - they are probably freaking out about having $$ surplus to work with that the budget will be worked out accordingly.

Dane- what are you talking about waiting for $$ to “trickle down”?  Are you so used to the last 8 years of stagnant growth and crappy interest rates from obummer regulations that you are worried about how long it will take to see something positive?  Are you living under a rock or something?  Have you seen how well the economy is doing RIGHT NOW and how well savings accounts are doing??  That is great for everybody!  Please take an economics class so you can understand how successful business make ALL of us successful eventually.


SGP and sterling - you got it. Further, the new restrictions on deductions actually forces “rich” people to pay more - aren’t the “rich” people the ones who own all the giant houses and have “so much more” than the rest of us and aren’t the “rich” the ones the whiny lib dems think should pay more for everyone else since they have more?  So this is something whiny lib dems should be happy about, right?  Crickets


Loco:  to answer your questions - I ended up making a payment before IRS came out with their recent restriction saying that unless it was assessed, then it can’t be deducted.  I am not happy about that, of course. As for the county accepting money before assessing for it, and the account it goes into - speaking for myself - I am unconcerned.  I will owe this money to LoCo next year anyway, and I have proof of the amount that I paid and the receipt says ‘prepayment’.  I expect there will be some adjustment to the bottom line, but I am not worried about it.


SGP, here is a question for you, how is the corporate tax cut that is promised to raise worker wages going to improve the wages of teachers, first responders, etc?  How long do they have to wait for the money to trickle down to them?


truth -subsidizing “dependent” states that have artificially low taxes -
ca, ny, nj & other states get less than $1 back for ea $1 pd in taxes but ms, nm get $3 back, al & la close, & sc gets a whopping $7.87 per $1 pd in (atlantic)


@Virginia SGP
WalletHub data indicates NewYork receives an average per capita of 56 cents for every $1 people spend on fed taxes.  CA receives 64 cents per $1 of Fed taxes.  VA receives an average of $1.13 per capita.  Could you please clarify which state is subsidizing which?


Glen, I’m sorry you were not paying attention.

The bill does cut the federal taxes paid by nearly every American.  However, instead of subsidizing states with high tax rates, the bill eliminates numerous inefficient deductions and lowers federal tax rates overall.  However, whenever folks have an incentive to pay less, including using temporary loopholes, they will take it.  Folks were trying to take advantage of a loophole by deducting 2018 county real estate taxes PAID in 2017 on their FY2017 tax returns.  The IRS cautioned that ain’t gonna work.

The good news… federal taxes of Virginians will no longer be used to subsidize the tax-and-spend ways of California and New York.  Are there any other questions we can answer for you?


I’m sure that not one liberal will choose to get both the tax break from 2018 property taxes this year, while also reaping the benefits of the tax bill on overall rates next year.

Double-dipping on not paying Uncle Sam isn’t very helpful to all those social programs, so make sure to pay the MAX amount of taxes possible.


So if the deduction is not allowed since property taxes have not been assessed why are people pre paying ? Further, legally should the county accept money for un assessed property taxes? Am I the only one concerned about which account this money is going to go?


It’s time to push our local officials to stop wasting our money and to cut taxes…


Huh! I thought this bill would cut taxes…why do folks want to pay extra now???

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