NEW YORK (FOX5NY.COM) - Homeowners in the tristate are lining up to prepay 2018 property taxes before the new federal tax law takes effect. Starting January 1, the IRS will cap state and local property tax deductions at $10,000.
Homeowners in New York, New Jersey, Connecticut, Illinois, and California could be hit especially hard. The governors of New York and New Jersey responded by signing executive orders to clear the way for prepayments.
"My property taxes are $41,000 a year. Now, I was always able to fully deduct those on my federal income taxes," New Jersey Gov. Chris Christie said. "Now I can only deduct [$10,000]."
New York City Mayor Bill de Blasio on Thursday said New Yorkers can prepay the first two-quarters of property taxes for 2018.
"What we want to urge here is that New Yorkers take advantage of the opportunity in the coming days to prepay property taxes if you can," de Blasio said.
The Republican leaders in Congress insist the cap is offset by lower tax rates.
"The message to the hardworking taxpayers of America is, 'Your tax relief is on its way,'" House Speaker Paul Ryan said.
The IRS warns that these prepayments may not be tax deductible for everyone. The agency posted a notice on its website saying a full deduction "depends on whether the taxpayer makes the payment in 2017 and whether the property taxes have been assessed before 2018."