May 22, 2018

Update on Property Tax Pre-Payment Information

Hoboken, NJ - Thursday, December 28th, 2017

The Internal Revenue Service has issued an advisory regarding the pre-payment of 2018 property taxes. The advisory states in part:

“In general, 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.”

The full advisory can be viewed at https://www.irs.gov/newsroom/irs-advisory-prepaid-real-property-taxes-may-be-deductible-in-2017-if-assessed-and-paid-in-2017.

At this time, the City of Hoboken has only assessed property taxes for the first and second quarters of 2018. Property taxes have not been assessed for the third and fourth quarters of 2018.

Per an Executive Order issued by Governor Christie (http://nj.gov/infobank/circular/eocc237.pdf), the Tax Office will accept and credit all pre-paid taxes that are postmarked by December 31st, 2017.

Payments can be made online at http://hobokennj.gov/proptaxes by e-check, credit or debit card 24 hours a day, 7 days a week. A convenience fee is charged for online payments. Payments made by e-check, debit card, or credit card can only be made online and not at the Tax Collector’s Office.

The Tax Office located on the first floor of City Hall will be open until 7:00pm on Thursday, December 28th and until 4:00pm on Friday, December 29th.

The City is not issuing advice on whether property owners should pre-pay taxes, how much to pre-pay, or the possible tax impact, which will depend on individual circumstances, future IRS rule-making, and possible future legislation. Contact your tax preparer or advisor for advice.

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