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Council Enacts Bill that Gives Montgomery County Residents the Option to Prepay their 2018 Property Tax in 2017

For Immediate Release: Tuesday, December 26, 2017

Council Enacts Bill that Gives Montgomery County Residents the Option to Prepay their 2018 Property Tax in 2017

Advance payments this calendar year must be the full amount of county property tax owed for 2017


ROCKVILLE, Md., December 26, 2017— The Montgomery County Council held a special legislative session today to enable residents to prepay their 2018 county property tax in 2017.  By a 7-1 vote, the Council enacted Bill 42-17, Property Tax Advance Payment — Authorized.  The bill gives county residents the option to prepay their 2018 property tax this year.   The bill requires the county to refund any amount paid that is greater than the property tax owed and would permit the county to bill the property owner for any amount of the prepayment that is less than the 2018 property tax once it is finally determined.

 “Creating this prepayment option may open the door for many middle-class county residents to get a final year of benefit from deducting their property tax on their 2017 federal tax return,” said Council President Hans Riemer.  “Initial speculation was that only the most affluent residents could take advantage of this option. But with the benefit of public input, we now know that the prepayment option will be a potential benefit to thousands of county residents of more average means.”  

 Maryland tax law authorizes the governing body of a county to enact a law permitting taxpayers to make an advance payment of county property tax.  State law requires that the advance payment must be the full amount of county property tax owed for the prior year. 

 On Dec. 22 President Trump signed the federal Tax Reform Act into law. The act will limit the deduction for state and local income, sales, and property tax to $10,000 beginning in 2018.  The advance payment of 2018 property tax before the end of 2017 may be deductible for some taxpayers on their 2017 federal income tax return.

 Montgomery County’s Finance Department encourages county taxpayers who intend to prepay their 2018 property tax this year to mail their payment.  The county is providing information on the websites of the county, the Finance Department, and the Council, and also via the Paperless Airplane and Regional Services Center newsletters and on social media.

 Before mailing a payment, residents must print a Notice of Intent form located on the websites, fill it out, sign it, and mail it with their payment to the Treasury Office: 255 Rockville Pike, Suite L-15, Rockville, MD 20850.  

 State law requires that residents who intend to prepay their property tax must pay the full amount of their 2017 county property tax.  If residents owe property tax for the current or prior years, the payment will be applied to any past due amount before it is applied to any advance payment.

 Residents are encouraged to consult with their tax advisor to understand whether prepaying their 2018 property tax this year will benefit their tax situation.  Montgomery County makes no representation as to whether the prepayment may be deducted for federal income tax purposes.

 Instructions and more information on property tax prepayment for 2018 can be found at:  .

Submissions must include a signed Notice of Intent form, which can be found at:  .

A checklist for prepaying 2018 property taxes can be found at:  .



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Release ID: 17-399
Media Contact: Sonya Healy 240-777-7926 , Juan Jovel 240-777-7931