STONINGTON, Conn. (WTNH) — Tax collectors all along the shoreline have been busy over the past few days.
“We’ve already collected $500,000 just since 8:30 this morning,” said Stonington Tax Collector Linda Camelio.
This month her department has taken in $1.3 million more than last December.
“It’s just a result of people worrying they won’t get their tax deductions,” said Camelio.
Many are paying their January bill before the end of the year because starting in 2018 the real estate tax deduction will be capped at $10,000 according to the new federal tax code.
“This makes it a little tougher to pay a big bill a few days after Christmas and before the New Year but if it helps to… the bottom line next year in taxes I’ll take advantage of it,” said Stonington resident Wendy Bury.
Some though are also trying to pay next year’s taxes now even though they haven’t even been billed yet.
“At two in the morning I got an email from a woman who wanted to mail me $30,000 for pre-payment for July taxes,” said Camelio.
Someone else dropped off a $20,000 check for next July’s bill but Linda Camelio mailed it right back to them.
New London will take pre-payments if residents insist but it won’t automatically be applied to next year’s tax bill.
“There’s no way to pay your taxes ahead of time and it’s based on the fact that there’s no tax warrant that gives us the authority to collect that money,” said New London Mayor Michael Passero.
The IRS also sent out a memo saying prepaying anticipated taxes that have not already been assessed prior to 2018 will not count toward this year’s tax deductions.
Another complication with all this is that some of the people paying their January tax bill before the end of the year have a mortgage with an escrow account and the mortgage company will most likely be paying that same bill in January and then refunds will have to be issued.