From the Star Ledger:
Christie orders N.J. towns to accept 2018 property tax prepayments
New Jerseyans rushing to their town halls this week in hopes of immediately paying next year’s property tax bills before the new federal tax law kicks in Monday just got a last-minute boost from Gov. Chris Christie.
But the IRS may be limiting how big of a boost they’ll get.
Christie issued an executive order Wednesday requiring that all municipalities in New Jersey permit homeowners to prepay 2018 property taxes, as long as the payments are postmarked by the end of the year, which is Sunday.
That will allow homeowners to deduct the payments on their 2017 federal tax returns.
The move is designed to help taxpayers temporarily minimize the impact of the federal law signed last week by President Donald Trump, which will limit the amount in state and local taxes that homeowners can deduct from their federal income taxes to $10,000 beginning Jan. 1.
Many municipalities — from Jersey City to Hoboken to Evesham — had already been accepting at least partial 2018 prepayments from worried residents.
But Christie said not every town in the state was following suit. His order instructs the director of the state Division of Local Government to mandate that all of New Jersey’s 565 municipalities do so.
“The action I took today will ensure that local governments are flexible and accommodating of their local property taxpayers as we transition to the new federal tax code for 2018,” Christie said in a statement. “This executive order requires local officials to dedicate the resources and staffing to serve New Jerseyans who are planning in this way for their families and their futures.”
There’s a snag, though. The Internal Revenue Service said Wednesday that 2018 prepayments are deductible only if you’ve already received a bill from your local government and paid it by Sunday. That could add confusion for those hurrying to meet the deadline.
Experts say New Jersey’s tax bills have been sent out only for the first and second quarters of 2018. That may mean homeowners are allowed to deduct prepaid taxes only for the first half of next year but not the latter half.
So I got the subsidize y’all One more year?
Run your numbers to be sure, I am in AMT, no deduction for me.
For decades, NJ residents irresponsibly let their corrupt Democrat reps excessively raise taxes. Now, they foolishly want to blame Trump for their problems.
NJ residents are clearly not that bright.
I pre-paid first two quarters of 2018 yesterday.
Lots of uncertainty here, let the chips fall where they may.
In case anyone was interested, the troll has indicated he was 19 in 1999.
Prepaying is like driving 30 miles and waiting on a 30-minute line to get gas at Costco since it’s a nickel cheaper. You’ve saved $2.25 on your 15 gallon fill-up, but you spent $2.50 driving there and waiting in line.
Unless you were paying an unsightly number in property taxes prior to the 10K cap going into place, your savings would be minimal. In many cases, when you calculate your opportunity cost in floating your government a loan, and the impact on AMT, it’s really hardly worth the press it’s receiving. And don’t put it past Trump to figure out a way to not allow prepayment to work for you anyhow.
“Prepayments of anticipated property taxes will not be deductible”
At best, you get your tax savings on the first two quarters. So PLEASE don’t prepay the whole year and give your local government a float on your money. So NOW what are your savings. I pay around 16K. At best I am getting the savings on 3K? Big whoop.
@A Home Buyer. If it makes you feel less foolish for allowing your taxes to be raised so high, please know that “J” is short for Joseph and I’m 53.
Trump and the GOP were brilliant because they did, in fact, tax the rich… specifically in high tax blue states, where people like you foolishly continued to let irresponsible, incompetent, and corrupt Democrats raise your taxes (and tell you it was a good thing).
Did you know that the big blue states (NY, NJ, CA, MI, CT, even D.C., etc.) “DOMINATE” the list of states with the largest and fastest growing gaps between rich and poor? It keeps getting harder and harder for middle class families to buy and keep homes. Excessive real estate taxes are at the top of the reason for this.
You’re foolish if you believe Trump is the root of your problem. The root of your problem is that you let Dems run NJ. And, if you voted Dem, you are getting exactly what you voted for.
J,
I think A Home Buyer was referring to pumpkin
Keep in mind, first quarter taxes are due Feb 1, so you aren’t really floating local govt. this money for very long.
J –
If it makes you feel less foolish, I sold my house and left new jersey. And I’m libertarian, don’t blame trump for my problems, and living quite nicely at the present time. Thank you for caring though.
PS. You are also not annoying enough for me to care who you are, nor have you stupidly revealed your life story on a real estate blog. I have a long standing dislike of the troll and unfortunately he refuses to disappear nor will people stop engaging him.
“Keep in mind, first quarter taxes are due Feb 1, so you aren’t really floating local govt. this money for very long.”
Unless you pay all four quarters, which most have been doing.
Apparently Essex liberals don’t like feel good programs unless they are able to deduct them on the backs of middle America. Montclair is even extending the tax collector hours to Saturday. Likely evidence that the loss of deduction will be felt in the home prices of these locales.
http://www.nj.com/essex/index.ssf/2017/12/tax_collectors_say_its_absolutely_nonstop_as_resid.html#incart_river_home
nwnj,
The most likely scenario is people do not understand the tax code and are employing herd mentality on this.
And in other news this silverback says:
‘I am disappointed in having to respond to this accusation, but I believe transparency is very important. Unfortunately, it looks like Grinch is trying to steal the spirit of the holiday.
Last Monday, I arrived at the airport to catch my flight to Washington to continue my fight to get Hurricane Harvey funds back to Texas and other hard hit areas, along with funding of the Children’s Health Insurance Program and of course, trying to stop a tax bill that was going to cause millions of Americans to lose their health insurance.
After receiving my boarding pass, I boarded the plane in the normal process. I did nothing wrong. I asked for nothing exceptional or out of the ordinary and received nothing exceptional or out of the ordinary. I proceeded to take my seat and work on legislative issues on my way to Washington.
Term
limits.
Even the NY Times interactive chart says a Federal tax cut for a typical NJ married couple both parents working. I used low ball income of a teacher and cop at $150K total with 2 kids using the standard deduction.
$3,340 tax cut
https://www.nytimes.com/interactive/2017/12/17/upshot/tax-calculator.html
Pumps is always telling us how old he is. For the last more than a year he keeps telling us how great he’s doing at 36 and then he said 37 very recently. In 1999 he was working on his 3 secret degrees at the post office after dropping out of high school.
Maybe his degrees are in sorting, lifting, and loading?
Those rushing to prepay their 2018 taxes are the ones that have zero money management skills.
The same group rushing to prepay are the same ones that elected a liberal as their governor. lol! What theater!
Hell yeah. Congress is exempt from insider trading rules, which is just plain ridiculous. There isn’t a politician who isn’t a multi-millionaire 3 or 4 years in.
Term
limits.
Even a retired widow on fixed income gets a tax cut according to the NY Times. Who loses out here?
Who loses out here?
Puzzy hat liberals crying for more handouts and the media puzzies that justify their existence.
Juice this is exactly one of the reasons I think housing prices will fall. No longer the same stupid incentive to pay more because you can write it off. Same with property tax cap.
Here’s something I found out just the other day. I knew since last year about McCabe’s wife getting $700K from the Clinton Crime Family for her failed run for a state seat, and that is a huge, out-sized donation for that level of politics. I figured, big deal, she lost anyway. What I didn’t know until last week is…in Virginia the candidate gets to keep any excess funds raised.
Suck it, Dems.
Rasmussen Poll shows Trump at 46% APPROVE this morning, with 53% DISAPPROVE…
What about Obama at same exact date first year in presidency?? 46% APPROVE, 53% DISAPPROVE!
Rasmussen Poll shows Trump at 46% APPROVE this morning, with 53% DISAPPROVE…
What about Obama at same exact date first year in presidency?? 46% APPROVE, 53% DISAPPROVE!
http://www.rasmussenreports.com/public_content/politics/political_updates/prez_track_dec28
Your Essex county house between 500k-800k(property taxes between 14k-25k) takes a hit, people in other counties between 700k-900k and those who have owned their homes for a long time. The people with the more expensive homes weren’t getting salt anyway thanks to the AMT. The tax benefit to the really high income people goes away but they are getting a top rate cut so does it really hurt them?
Enjoy your your crumbs. Same as it ever was.
ExPat just wait until people see there taxes go down. America loves a tax cut, if an incumbent wants to win re-election give a tax cut it worked for that dolt bush, and that schm*ck obama.
My preliminary tax bill for the first half of the year is $6,200. I am going to take that money and go long on my shitcoin XRP instead of giving it to the town interest free.
Who will come out ahead?
https://coinranking.com/coin/ripple-xrp
JCer – Yup, people do have short memories. File taxes in April get refund by June then vote in November, any longer than that and they will forget all about the refund check. I wonder if the IRS will delay sending the check or electronic refund for 4-5 months until the last week of October just before the Tuesday of the 2018 election do the need for more time to update their “systems” to handle the tax law changes.
Why do you think the NJ Homestead Rebate checks were always mailed two weeks before Election Day, signed by the incumbent governor.
Grim is correct again!
And don’t think that this Christie move wasn’t completely partisan. It’s a nice way for a local Republican to say, though I can’t argue with the boss, here’s a crumb for you and you and you. Now don’t spend that $150 in one place.
I don’t understand what’s so bad about the AMT. It’s just stopping individuals from trying to write off most of their tax burden, correct? So they are not really paying a higher tax, they are just being prevented from artificially lowering their tax burden? I’m no expert, just trying to figure this out.
Normally, an average of 550 police officers are absent every day across Puerto Rico, which has one of the largest police departments under U.S. jurisdiction with more than 13,000 officers overall. But recently, more than 2,700 officers on average have been absent daily.
https://www.washingtonpost.com/world/the_americas/thousands-of-puerto-rico-police-owed-overtime-call-in-sick/2017/12/27/f8670dac-eb4d-11e7-956e-baea358f9725_story.html?utm_term=.4e3c41704f5e
Almost 5% absentee rate on a normal day. I wonder how that compares to other government agencies and private companies.
AMT is fine.
The problem was that the levels that makes one in scope are not adjusted for inflation.
This was likely on purpose, to gain more revenue, but sure doesn’t follow in the spirit.
Video shows Topeka police shooting man in the back; D.A. says no charges to be filed
Kagay added that the shooting was justified because White hovered his hand over the pocket containing his gun, making him a threat to use deadly force, according to the Topeka Capital-Journal.
http://www.kansascity.com/news/local/article191885279.html
Sad. Similar to the evisceration of the 4th amendment… we started with he pointed a weapon at me and now we’re down to he hovered his hand over the pocket with back turned while running away.
Wow, she is one of the most beautiful girls I have seen
http://www.youtube.com/watch?v=xmxdAu6RQtM
I’d guess that the for the majority of Americans, there is a disconnect between the taxes they pay and the actual check they get back in April. As long as they get money back, they are happy. It doesn’t matter that they were overpaying all year or what bracket they are in or if they got a tax cut.
The most effective tax cut politically speaking, maybe ever, was the George Bush tax cut in 2001. Everyone got a $300-$600 rebate check. Bush went from 51% approval to 90% approval in two months. That is how you do it.
http://news.gallup.com/poll/116500/presidential-approval-ratings-george-bush.aspx
Of course 911 had very much to do with that, but I still remember people being very happy with their $300 from GWB.
AJ exactly and these are some of the very same people who convince themselves and others that high housing prices and taxes are justified and housing is an investment.
LOL Juice, this brings to mind two memories:
1. My family was poised to take our first long distance vacation to Disney World, circa 1972. A family of seven plus our great aunt, driving two cars, all the way to Orlando. My parents needed their tax refund to make this happen, and by June the refund was not there. My Mom contacted our Congressman and the check showed up immediately.
2. As mentioned a few days ago, I was attending Rutgers and I used to file my income taxes as early in January as I had the documents, desperate to receive my $130 or so that financed my Spring Break in Fort Lauderdale. The check always came the first week of March and our Spring Break at RU was the third week. Perfect.
Full Disclosure: I was pursuing a Bachelor’s Degree in Electrical Engineering, not super secret degrees like Pumps was attempting at the Clifton Post Office after dropping out of high school.
Juice Box says:
December 28, 2017 at 11:02 am
JCer – Yup, people do have short memories. File taxes in April get refund by June then vote in November, any longer than that and they will forget all about the refund check. I wonder if the IRS will delay sending the check or electronic refund for 4-5 months until the last week of October just before the Tuesday of the 2018 election do the need for more time to update their “systems” to handle the tax law changes.
Governor Cuomo: “I come up with a law that says that if you own a Cadillac, you will pay a higher tax. Yes, but, I know that 80% of the people that own Cadillacs are Republicans. So there’s a disproportionate application of the law. Second, in terms of people in one state against another state, there is no state in the United States of America that pays into the federal government and gets back less than New York State. We send in $48 billion dollars more than we get back. We subsidize …every…other…state. This actually aggravates that injustice by having us pay now $16 billion dollars more in the loss of the deductability of state and local taxes. Uh, so, we…subsidize…everybody… else. Uh…now, we are a richer state, so, uh, we pay a higher level of federal tax. But, it’s not even close…as to the equity among the states. We are the number one aggrieved state.”
Me: elections have consequences
^^^transcribed diligently by me from a CNBC interview. Thank God for DVR buffer.
Sounds to me like it’s time to pay your fair share New York.
even though Obama and the Clinton Crime Family whispered to you that you don’t have to.
How great will it be when Trump wins in 2020, but loses the popular vote by 10 million? (All of it in New York and California)
How great will it be when Trump wins in 2020, but loses the popular vote by 10 million? (All of it in New York and California)
Angry puzzy will be twittering like mad!
Here we go, like clockwork now. Every year for how many years have they been talking about an overpriced stock market? Every year, it’s always going to correct. Don’t they realize a 9 year bull market going into the biggest economic boom of our lifetime can’t be measured by past metrics used to call past market tops? Give it a rest already, admit you know nothing about this market because it’s unlike anything we have ever seen before.
This 1 chart shows the U.S. stock market is the most expensive in the world – MarketWatch
https://apple.news/AP3HE6qoWTgGTUM338PaWxA
Wtf does past markets and metrics used to measure them, have anything to do with predicting this current market?
An “overpriced” stock market (what college graduates call high P/E ratios) easily exists when inflation is low, predictable, and steady. Same now as it was in 1999. Recognize inflationary or deflationary forces when they come to the fore and you’ll know when to get out.
Is this the same douchebag who used to tout his his “cycles and demographics” in unsubstantiated data that convinced him to buy his highway house adjacent to the flood plain and a radioactive dump site?
Wtf does past markets and metrics used to measure them, have anything to do with predicting this current market?
Yes, and remember your boy trump stating the market is overpriced in 2016? How that work out? How that work out for every expert in the past 5-6 years?
The Original NJ ExPat says:
December 28, 2017 at 3:40 pm
An “overpriced” stock market (what college graduates call high P/E ratios) easily exists when inflation is low, predictable, and steady. Same now as it was in 1999. Recognize inflationary or deflationary forces when they come to the fore and you’ll know when to get out.
Yes, if they stopped over analyzing the market, maybe they would be right like pumps.
Stick to the business cycle and demographic spending patterns of the largest groups right now. That’s what matters, not all this other bs.
The Original NJ ExPat says:
December 28, 2017 at 3:45 pm
Is this the same douchebag who used to tout his his “cycles and demographics” in unsubstantiated data that convinced him to buy his highway house adjacent to the flood plain and a radioactive dump site?
Wtf does past markets and metrics used to measure them, have anything to do with predicting this current market?
I have to say, being a new poster to this blog, while I have no historical reference for all this incessant Pumpkin bashing, it is somewhat entertaining. But, I almost feel bad for the guy. From what I can tell he is a liberal in a sea of conservatives.
I am not a conservative or a liberal as they are currently defined.
AJ,
I’m more of centrist, but because it’s a sea of conservatives, I still get beat up in here.
I am pretty progressive actually. Though I think the quality of life sh1t has gone too far.
Also, they are pretty mad about my calls from 5 years ago. I was called an idiot over and over for making the calls, and was told they had no chance. Guess when you end up being right, it really pisses them off.
Lib I would go with progressive but they have ruined that label too.
AJ,
Stick around longer and you’ll stop coming close to feeling bad for him.
Exactly. I used to enjoy his company. Now I can’t stand him. And unbeknownst to him, it’s not his calls nor his political positions. He’s simply the most non-self-aware person I’ve ever come by. And I mean EVER!
And though there are a handful of conservatives here, most can see the absurdity of the politics of divisiveness for the sake of maintaining the base.
Lib you nailed it! Zero self awareness!
Pretty sure there is a correlation between education and the crime drop. Would be worth investigating.
https://mobile.nytimes.com/2017/12/27/nyregion/new-york-city-crime-2017.html
I belong to the cream pie party. Google it.
BTW,
I’m not a conservative at all, but rather a radical pro-reason, pro-individual rights, pro-capitalism guy. But collectivist, redistributionist, politically correct leftists bother me much more than conservatives, because in NJ they generally aren’t bible thumpers.
Also, for newcomers imagining something sympathetic about him, Pumpkin is the biggest racist I’ve seen on the board. He especially hates certain types of people to get uppity and move from their designated welfare-dependent towns into what he imagines is his own special town. Thus a main purpose of NJ’s high taxes, in his view, is to keep undesirables in their own place and out of his zip code.
He does suffer terribly from a malady called the “Dunning Kreuger effect”
Cuomo: “We subsidize every other state.” Cuomo is forgetting NJ residents working in New York send more $3 billion of New York State income tax to Albany each year. Why don’t NJ politicians care about this? If NJ had a balanced income tax treaty with New York, NJ’s fiscal problems could be solved instantly.
“”On the other hand, perhaps you had the misfortune to enter the world in 1961, one of the worst years in this century to be born. You’re one of the huge crowd of late baby-boomers, also known as generation x. The mass of older boomers who preceded you are occupying most of the best jobs and have pushed the price of real estate way up, perhaps out of your reach. Chances are that life has been a struggle for you. And your parents, the lucky people who were born in 1937 or thereabouts, probably don’t understand how tough that struggle has been.” – David K. Foot and Daniel Stoffman from Boom, Bust, and Echo, Macfarlane Walters and Ross Toronto 1996.
That description has both comforted and haunted me ever since, and highlights the lasting message of the book: much of your life is beyond your control, accept that, and don’t fight the big waves. In a sense this is like a Taoist teaching to use the big patterns to your advantage, and make the best of what is. Pretty good advice really.“
For me it says around $10,000 ooops….
Juice Box says:
December 28, 2017 at 10:26 am
Even the NY Times interactive chart says a Federal tax cut for a typical NJ married couple both parents working. I used low ball income of a teacher and cop at $150K total with 2 kids using the standard deduction.
$3,340 tax cut
https://www.nytimes.com/interactive/2017/12/17/upshot/tax-calculator.html
Yes hordes of these highly educated sophudicaed products of New Jersey elite public schools rushing out to pre pay property taxes even though no need for them to do so as they are getting a tax cut. I wonder how many put the payment on a credit card?
Thus a main purpose of NJ’s high taxes, in his view, is to keep undesirables in their own place and out of his zip code.
Used to hear this all the time when I was an active agent.
And yet some of the poorer towns have the highest taxes.
I would contend that he is a HS dropout with a deported criminal father in a sea of people who have neither of those things in common with him.
I have to say, being a new poster to this blog, while I have no historical reference for all this incessant Pumpkin bashing, it is somewhat entertaining. But, I almost feel bad for the guy. From what I can tell he is a liberal in a sea of conservatives.
And yet some of the poorer towns have the highest taxes.
Still don’t understand why Jersey City and Hoboken can approve buildings with PILOTs (payments in lieu of taxes), and still receive Abbott funds.
It’s like they are purposely excluding new developments so they can still claim that their budgets can sustain their schools.
Good point. Although at some point the redeployment may push out most of the poor. Although I understand that Hasids are starting to buy in neighborhoods that are predominantly black after being pushed out of a regentryfying Brooklyn.
From what I can tell he is a liberal in a sea of conservatives.
I wouldn’t call most people on this site conservatives. Sure enough, radical progressives would insist we are. But most people here believe in capitalism as it understand what it takes to earn a buck.
More evidence of people migrating to better commuting locations.
West Milford down 1400 students from the peak enrollment in 2003-2004.
http://www.northjersey.com/story/news/passaic/west-milford/2017/12/28/staff-cuts-block-schedules-considered-west-milford-schools-2018-19/987809001/
Care to live in places like Paterson or Camden? Racism has nothing to do with it. Growing up in Clifton, I was close enough to it to use it as a reminder why I should work my butt of every single day,
“Also, for newcomers imagining something sympathetic about him, Pumpkin is the biggest racist I’ve seen on the board. He especially hates certain types of people to get uppity and move from their designated welfare-dependent towns into what he imagines is his own special town. Thus a main purpose of NJ’s high taxes, in his view, is to keep undesirables in their own place and out of his zip code.“
Based on the amount of services used, it’s more than justified.
3b says:
December 28, 2017 at 6:13 pm
And yet some of the poorer towns have the highest taxes.
I’m definitely libertarian, and the pumpkin bashing is pure entertainment.
https://www.bloomberg.com/view/articles/2017-12-28/the-u-s-is-becoming-the-world-s-new-tax-haven
They are trying to get in on the Muslim game. I can show you ex-coal towns in central PA where Catholic churches have been re-purposed as mosques.
Although I understand that Hasids are starting to buy in neighborhoods that are predominantly black after being pushed out of a regentryfying Brooklyn.
My 2018 real estate predictions:
New Jersey home prices underperform the national average again. According to NJAR data, 2017 house prices through November are unchanged compared to the previous year – $305,000 versus $305,000. I expect similar stagnation next year, I’ll call it a -2% to +2% range for 2018 in NJ (point estimate = -0.3%), compared to national appreciation in the mid-single-digits (point estimate = 5.1% using the S&P CoreLogic house price Case Shiller 20 City Home Price Index). Hudson County will put up the strongest house price growth in New Jersey (point estimate = +7.5% according to NJAR data.) These predictions are for the period of January 1, 2018 through December 31, 2018.
Hysterical TDS victims, including NJ Advance Media reporter Jonathan “So Slanted” Salant and Rep. Josh “NAR Puppet” Gottheimer, have predicted double-digit NJ home price declines caused by the Trump tax bill. Declines of this magnitude won’t happen, and when they don’t, I will reach out to Salant and Gottheimer and ask them to update their expectations publicly.
Amazon announces HQ2 will be built in the Toronto area.
This is the sexiest woman alive
http://www.youtube.com/watch?v=xmxdAu6RQtM