Counties see increase in dollars collected in prepaid property t - WREX.com – Rockford’s News Leader

Counties see increase in dollars collected in prepaid property taxes

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ROCKFORD (WREX) -

The deadline for prepaying your property taxes has passed and the total dollar amount collected in those taxes is in. 

"The difference is dramatic," Stephanie Helms, the Stephenson County Treasure says.  

Winnebago County collected more than $14 million in prepaid property taxes. For Boone County, that number was roughly $5 million and Stephenson County saw more than $2 million coming it's way. That's an increase compared to just $100,000 prepaid dollars some counties see in a normal year. 

"They wanted to take advantage of the tax credit basically before it went away so there was a mad rush to get it in before the end of the year," Helms says. 

That's because under President Donald Trump's new federal tax plan,  payers can't deduct part of their property tax payments off their federal taxes. Unless, they made their 2018 payment before the end of last year. 

"I think to take advantage of what they can and while they can was probably the driving force," Helms says.  

Since so many people paid part of their bill ahead of time, those dollars are just sitting and building interest. In Boone County, leaders say roughly 9 percent of that interest will go back into the county. 

"At the end of the year when we distribute the interest, they will be a little bit of a bonus for not only the county, the school districts and the cities and villages and all the taxing districts," Curtis Newport, the Boone County Treasurer says. 

But, leaders say they don't expect that mad dash to happen again anytime soon. 

"It was kind of a one and done," Helms says. "That loophole is gone so people cannot take advantage of unless some other tax reform package would come through and change that."

If you weren't able to make it to your local treasurer's office by that December deadline, you can still deduct your 2018 payment off your state taxes. 

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