Homeowners nationwide rush to prepay property taxes. In Stanislaus County, not so much

City and county officials across the nation 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.

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

But there has been no rush to prepay in Stanislaus County, where property values are not has as high as elsewhere in the state. The Treasurer-Tax Collector’s office has seen some property owners coming in to prepay their 2018 taxes.

For instance, interim Treasurer-Tax Collector Lauren Klein said there were about a half-dozen people waiting to prepay their property taxes when her office opened Thursday morning. Klein said her office also has received phone calls from property owners asking about prepaying their taxes.

She said property owners can only prepay the second installment of their current tax bill. That installment is due April 10. She said property values have not yet been determined or taxes calculated for next year’s property tax bills.

The Internal Revenue Service confirmed Wednesday that taxpayers will be able to take advantage of prepaying their taxes — but only under limited circumstances. The IRS said 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. Local tax officials in affected localities will now be forced to interpret the decision for their residents.

But that hasn’t stopped people – those with the ability to come up with a few thousand dollars on short notice – from trying.

More than 1,700 taxpayers lined up outside the Fairfax County, Virginia, government center Tuesday to prepay their property taxes, while 750 people sent wire transfers and about 650 dropped off payments in a government lockbox that normally gets two or three pieces of correspondence a day, said director of revenue collection Scott Sizemore.

Arlington County, Virginia, treasurer Carla de la Pava said about 30 people were waiting when her office opened at 8 a.m. Wednesday. As of 10:45 a.m., the county had accepted more than $5 million in early payments from 644 taxpayers.

“This is completely unusual. They’ve been coming in for weeks,” said de la Pava, adding that some taxpayers were paying up to three years of taxes in advance. Since property tax bills for future years are not out yet, officials say people interested in prepaying should base their payments on the amount of taxes they owe this year.

Bee Staff Witer Kevin Valine contributed to this report.

This story was originally published December 28, 2017 at 2:54 PM with the headline "Homeowners nationwide rush to prepay property taxes. In Stanislaus County, not so much."