With the new tax reform recently being passed, taxpayers are wondering what they can do to plan and save on taxes for 2017. One idea that is starting to make the rounds is to pre-pay property taxes for the 2018 -2019 property tax year in 2017.

The Oregon Department of Revenue recently released guidance on the issue on December 14th in the following quote:

“We have received multiple inquiries from property owners regarding prepayment of their property taxes for the 2018-19 tax year. The question is coming up in relation to the federal income tax legislation that may either limit or no longer allow taxpayers to deduct their local property tax payments, outside of the specific situations [which are rare] outlined in ORS 311.370, prepayments are not allowed.” the memo said.

Therefore, under Oregon law, pre-payment of property taxes is generally not allowed except in rare circumstances. This conclusion varies by state. In Oregon property taxes are not a lien on property until July 1, 2018 and relate to the year July 1 2018 to June 30, 2019. Therefore no 2018 property taxes are owed until July 1, and sending money off now does not create a deduction.

If you have further questions please let us know.