Full Notification

The Knowlton Tax Office will accept prepayment of 2018 property taxes for residents who wish to do so.

On December 22, 2017, President Trump signed the federal Tax Cuts and Jobs Act (P.L.115-97) into law. The Act, which takes effect in January, limits the allowable deduction for State and local income, sales, and property taxes to $10,000. This means many NJ homeowners will not be able to deduct as much on federal income as they could before.

Since many taxpayers will not be permitted to deduct all their property taxes in 2018 and beyond, residents may want to consider prepaying their 2018 property taxes this week — and potentially save on their federal tax bill. Yesterday, December 27, Governor Chris Christie signed Executive Order 237 allowing NJ municipalities to accept prepayment of 2018 taxes for residents who wish to do so.

Each resident’s tax situation is unique and Knowlton Township cannot advise individual residents on whether this is a beneficial action to take. Prepayment will not benefit everyone-- Taxpayers who do not itemize their deductions or who pay the Alternative Minimum Tax (AMT) may not benefit by prepaying. We strongly recommend that residents seek their own independent advice from a tax professional.

Residents who decide to prepay may do so before December 31, 2017. Statements for the first two quarters of 2018 were mailed earlier this year, thus the taxes due for the first half of 2018 are already known. The State of NJ’s budget for 2018 is not yet done, so individual property taxes for the second half of 2018 will need to be estimated. Residents who estimate their taxes will likely have to make adjustments late next year after the budget is finalized.

Tax payments may be dropped off or mailed to the Knowlton Municipal Building. Mailed payments will be treated as paid in 2017 if they are postmarked by 12/31 or are left in the drop box before Tuesday morning 1/2/18.

The Knowlton tax collector will be at the Municipal Building on Friday, December 29 from 6:00 to 9:00 pm to answer any questions in person.