The new federal legislation relating to the deductibility of State and Local Taxes (SALT) greatly scales back how much state and local taxes can be deducted on federal income taxes in 2018. Under the 2017 federal law, the SALT deduction is unlimited. In the new legislation, taxpayers can only deduct up to $10,000, any combination of property, income or sales taxes. As the average secured property tax bill in fiscal year 2017-2018 is approximately $7,100, and California has both an income tax and sales tax, it is likely that many taxpayers would pay more than $10,000 in SALT next year.
Orange County Treasurer-Tax Collector Shari Freidenrich is encouraging taxpayers to check with their CPAs or financial advisors to see if paying the second installment of the fiscal year 2017-18 property taxes or any outstanding supplemental property taxes prior to December 31, 2017, makes financial sense. The second installment of secured property taxes is due on February 1 and late after April 10, 2018. Every year, we have many taxpayers that make both installment payments prior to the end of the calendar year. Continue reading