Close to 2,000 in St. Louis County prepaid 2018 property taxes - KBJR 6 Your Weather Authority: News, Weather & Sports

Close to 2,000 in St. Louis County prepaid 2018 property taxes

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DULUTH, MN -

As 2017 came to a close, we saw hundreds of people lining up across the country to prepay their property taxes before President Trump's new code came into effect.

Now tax division manager Brandon Larson said, with the new year comes quieter halls at the St. Louis County auditor's office.

"It's actually night and day difference. Foot traffic has pretty much gone to a minimum now," he said.

According to Larson, the county saw about 1930 prepayments on 2018 property taxes, amounting to about $5.6 million. 

"I've been here over twelve years now and I've never seen this amount of foot traffic or a lot of people wanting to prepay their taxes," he said.

The new code's timing made Certified Public Accountants, like Mark Fredrickson, busy as well he said he spent the past few weeks guiding people through those changes and advised quite a few people to try to prepay their taxes.

According to Frederickson, he told anyone who would exceed the $10,000 state and local tax deduction cap under the new code, and he believes they will see a greater deduction.

"The IRS did come out with an announcement last week that in certain jurisdictions they weren't going to accept prepayment," he said. "We think, and most firms think, there's a pretty good case that Minnesota's property tax system allows for prepayment."

But with that deadline come and gone, Fredrickson said there's now more than property tax changes to look out for.

"This really is a big change because the tax code has been used for years to incentivize certain behaviors, and this is a change because a lot of these deductions that incentivize these behaviors have been essentially removed for some people," he said.

That's because, with a doubled standardized deduction, accountants are expecting less than five percent of tax payers opting for itemized deductions... spelling the end for tax filing as we know it.

Experts say these changes come into effect this year, but won't affect this upcoming filing season. 

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