Planning on prepaying? County treasurer closing books at 4:30 p.m. Friday
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Washington County Treasurer Francis King originally said he’d accept prepaid 2018 taxes postmarked by Dec. 31, but Thursday he said he’s closing the books for 2017 at 4:30 p.m. today.
Although confusion reigns on this topic, prepayments in Washington and Allegheny counties may be legitimate thanks to a state law known as “The Venango Act” of 1847 or 1857 – its date could not be immediately ascertained – that officially confers chief tax collector status on the county treasurers of at least these two Pennsylvania counties.
“It’s certainly archaic,” said Washington County Solicitor J. Lynn DeHaven, who expands on the topic a bit later in this story.
The treasurer’s office in Courthouse Square will open on the final business day of 2017 at 9 a.m.
A newly imposed $10,000 cap on deductions of state and local taxes for federal tax purposes in the Republican tax overhaul that takes effect in 2018 had people making prepayments to take advantage of an unlimited deduction – and money saver – one last time before 2017 draws to a close.
As of mid-morning Thursday, King said he received $128,000 worth of 2018 prepayments from between 75 and 100 property owners. In previous years, he said, “We’ve never had prepayments.”
Conversely, the neighboring Allegheny County treasurer’s office has routinely accepted prepayments of county taxes.
Peters Township, the county’s most populous community and the home to many a mansion and McMansion, on Twitter referred those with questions about prepayment of 2018 taxes to its collector, Jordan Tax Service, at 724-731-2300. The City of Washington said last week it was not accepting prepayments.
Whether the IRS finds an individual’s prepayment acceptable is between the taxpayer and the agency, King stressed.
DeHaven, a homeowner in the county, recently prepaid his county property tax at the treasurer’s office. He brought with him a copy of his 2017 tax bill after the commissioners enacted the 2018 no-increase tax levy Dec. 21, forked over the money and received a 2018 tax bill stamped “paid.”
“I’m not going to be able to itemize next year,” DeHaven said. “It would have been lost, so it made sense for me to prepay it.”
Of the rather obscure Venango Act, the solicitor said, “I don’t know the history behind it,” but in his interpretation in light of a 2018 county tax prepayment and the recent tax overhaul, “It means we’re good in Washington County.”
DeHaven said he’s submitting the same type of prepayment to nonprofits for his personal 2018 charitable donations.
The state Department of Revenue and Department of Community and Economic Development took a cautionary approach in a joint news release issued Wednesday, urging Pennsylvanians to consult tax professionals before prepaying 2018 taxes.
The Internal Revenue Service, in a news release Wednesday, attempted to clarify the situation under which people could prepay and claim the deduction in 2017.
Essentially, the IRS said if a person has a 2018 tax bill in hand, they can pay those taxes in advance. If there is no bill, they cannot claim a deduction for the advance payment.
The link to the IRS news can be found at: https://www.irs.gov/newsroom/irs-advisory-prepaid-real-property-taxes-may-be-deductible-in-2017-if-assessed-and-paid-in-2017