HOUSTON – The Harris County Tax Office will gladly accept a pre-payment of your 2018 property tax bill, just don't expect it to help sidestep the new $10,000 deduction limit.
"We suggest, strongly suggest, that they consult their tax consultant," Mike Lykes, Chief of Staff for the Harris County Tax Assessor-Collector, said.
New guidance in a one-page memo from the IRS states clearly:
'...real property taxes that have not been assessed prior to 2018 are not deductible in 2017 .'
Harris County Tax Office information
"So, if you haven't received the bill yet for your taxes the prepaying them by just sending an amount to the County Tax Assessor is not going to be a deduction," Bob Martin, a Certified Public Accountant, said.
Martin's position that it does not pay to prepay, from a deduction standpoint is echoed by State Senator Paul Bettencourt, former Harris County Tax Assessor-Collector.
"Unfortunately it looks like the IRS cancelled the run on preporty tax prepayments for next year in Texas," Bettencourt said.
County Appraisal Districts start their assessment process on January 1 of the year the bill is due, which foils prepayment efforts for deductions.
However, it is advantageous, given the new federal tax plan, to pay 2017 property taxes in 2017 instead of waiting until the bill is due on January 31, 2018.
"If you already have your tax bill for taxes that are due at the end of January, if you pay them in December you will have a deduction in 2017. If you wait until 2018 that deduction may be limited," Martin said.