Is There A Trump Tax Reform Hack In Hoboken?

HOBOKEN, NJ — Now that the Trump Administration’s long-awaited tax reform bill has been signed into law, many Hoboken homeowners have a pressing, time-sensitive question: “Should I pay my 2018 property taxes before the new year comes?”

The answer may provide a temporary tax hack that can save local homeowners some big bucks.

According to the City of Hoboken Tax Collector's Office, the Trump Administration’s recently-adopted federal tax reform plan includes a combined $10,000 deduction limit on property, state, and local income taxes. Previously, there was no limit on this deduction.

Because of this significant change, many taxpayers have been asking about pre-paying 2018 property taxes in 2017, municipal officials reported.

• See related article: President Trump Signs GOP Tax Bill Into Law

Hoboken Mayor-Elect Ravinder Bhalla said that New Jersey residents are likely to pay “substantially more” in federal taxes thanks to the tax reform law, and that he plans to work with local and state officials to figure out a way to help “mitigate this latest assault from the president.”

“It is disappointing that so many residents in Hoboken and around the country will be directly impacted by the choice of national Republicans to give tax breaks to corporations and the wealthiest 1% in this country with no direct relief to middle class and working families,” Bhalla wrote. “This tax plan has the potential to affect Hoboken and New Jersey’s affordability for years to come.”

• See related article: These NJ Housing Markets Will Suffer Most Under Tax Plan: Moody's

Here’s the possible hack that has many local homeowners pondering an early 2018 tax payment:

“The City of Hoboken Tax Collector's Office has been accepting pre-payment of property taxes from those who wish to do so. As of this time, the city has only issued tax statements for the first two quarters of 2018. The 3rd and 4th quarter amounts will not be known until 2018 budgets have been adopted, however the city will accept payments from those who wish to pay more than the 1st and 2nd quarter taxes.”

Officials added:

“The city is not issuing advice on whether property owners should pre-pay taxes, how much to pre-pay, or the possible tax impact, including whether the IRS will allow the payments to be deductible on 2017 federal income taxes.”

Hoboken property owners who want to roll the dice can make payments online at http://hobokennj.gov/proptaxes by e-check, credit or debit card 24-hours, seven days a week. A convenience fee is charged for online payments. Payments made by e-check, debit card, or credit card can only be made online and not at the Tax Collector’s Office.

“To ensure that payments made by check are deposited and cleared by the end of the year, checks should be received no later than Thursday, Dec. 28,” officials added. “Include the block and lot number and indicate it is for 2018 in the note section to avoid a refund for overpayment of taxes.”

The Tax Office will be open extended hours until 7 p.m. on Wednesday, Dec. 27 and Thursday, Dec 28.

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Official White House Photo by Joyce N. Boghosian