The 24 Milton residents who rushed to pay their 2018 tax bill in advance will get their money back. But they might not be happy about it.
The residents paid next year’s property taxes early, hoping to get around changes to the new tax law. The new law, which goes into effect in January, caps deductions for state, local and property taxes at $10,000.
The Internal Revenue Service threw cold water on their plan, though, when it said Wednesday that deductions could only be taken if property had been assessed and bills for 2018 taxes had been sent. In Georgia, that doesn’t happen until well into the new year.
Additionally, Georgia tax commissioners said it’s illegal for taxes to be collected before a tax digest has been approved by the state.
“We apologize for any inconvenience or confusion,” the city said in a statement, adding officials thought they should “err on the side of the taxpayer rather than risk our residents being unable to take advantage of a possible tax deduction.”
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