SOUTH HADLEY — Tuesday morning, the town of South Hadley announced they will accept early payments for third and fourth quarter property taxes beginning immediately, according to town administrator Michael Sullivan.
In an effort to skirt the new tax bill’s $10,000 federal tax deduction limit, property owners across the state are rushing to pay their their property taxes before the bill takes effect Jan. 1. That way, they can file deductions for 2018 fiscal year property taxes under 2017 laws.
Because the cities and towns follow a fiscal year, which for 2018 began on July 1, and the IRS follows the calendar year, the last few days of December allow for a peculiar loophole where residents can apparently pay the final two quarters of their 2018 property taxes before the new tax bill kicks in.
The South Hadley collector’s office will accept in-person payments Thursday and Friday from 9:00 a.m. to 4:00 p.m. or by mail. While residents can check bills on the online InvoiceCloud system, they will not be able to pay online until after Jan. 1.
In South Hadley, the average value for a single-family home in fiscal year 2018 is $247,600. With a tax rate of $17.64 per $1,000 assessed value, the average annual tax payment is $4,367.66.
According to Massachusetts law, specifically, Chapter 60 Section 19, allowing prepaid taxes is up to the discretion of each municipality through issuance of a special warrant. The warrant is not mandatory, but ensures the collector must accept any early payments.
Any South Hadley residents mailing or dropping off checks are advised to date checks with the date they are sent.
Sarah Robertson can be reached at srobertson@gazettenet.com