State and Local Tax deduction to be capped at $10,000 in 2018 - KBJR 6 Your Weather Authority: News, Weather & Sports

State and Local Tax deduction to be capped at $10,000 in 2018

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ST. LOUIS COUNTY, MN -

The St. Louis County Auditor's Office says under the new federal legislation,  the state and Local Tax deduction will be capped at $10,000 starting in 2018.

The deduction is used by St. Louis County residents when paying their property tax bill. 

County authorities say you can pay the amount listed on their Truth in Taxation statement sent out in the fall of 2017, however any payments received now can't be recorded as a prepayment for next year.

Instead, it will be listed as an over payment of 2017 taxes. 

Authorities say the amount listed on the statement is just an estimate based on the preliminary budgets of various taxing jurisdictions.

The actual amount due won't be known until taxes are calculated and established in late February of 2018.

County Auditor Don Dicklich says the current cashiering and property tax software doesn't allow the County to provide a receipt showing that property taxes were prepaid.

"It's not possible for us to make that sort of procedural or software change in the final two weeks of the year.  We can provide a receipt showing that we received a payment on a specific date, but not that the payment is for 2018 taxes."

Dicklich also says legal advice can't be given on whether paying early will be beneficial to a person's tax situation, and no refunds will be offered early if it doesn't prove to be beneficial.

If you would like to pay your taxes early, you can send payments to the St. Louis County Auditor, and should also indicate on their payment that it should be applied to 2018 taxes.

The indication will allow staff to manually track and move the funds later.
 

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