Homes in the City of Coatesville selling for low $100,000 or low $200,000 are similar to homes in West Chester, PA that sell for high $500,000 or low $1,000,000, or in Wayne PA that sell for low $1,000,000.
Because of Coatesville's efforts at renewal, people will be able to lead a similar lifestyle here as people now living in Wayne, PA.
Tuesday, December 19, 2017
Most middle class people will be crushed by Republican "Tax Reform", except for us Coatesville residents.
In a last-ditch effort to take advantage of a popular tax deduction before the new tax law limits it in 2018, Lehigh Valley taxpayers are clogging the phone lines of collecting offices — but most will be disappointed.
Few tax districts in Pennsylvania are allowing prepayments, and those that are have several restrictions. Meanwhile, in high-tax states such as New York and New Jersey, homeowners are flocking by the hundreds to local tax collector offices in hopes of cashing in before the new year.
Since a national income tax began more than 100 years ago, people have been allowed to deduct from their income the amount they’ve paid for state and local taxes.
But under the tax legislation President Donald Trump signed into law Friday, there’s a $10,000 cap on the deductions. By filing early, some people are trying to effectively delay that hike for a year by paying their 2018 taxes in advance.
Hardest hit will be taxpayers in California, Connecticut, New York and New Jersey — states where the average state and local deductions in 2015 all topped $17,000. In New Jersey, the average property tax bill alone was nearly $8,300 last year and there are scores of towns where the average bill is above the $10,000 threshold. Pennsylvania’s average deduction is about $7,200, according to the IRS.
THE MORNING CALL
Sorry, you probably won't get to prepay your taxes
“What the federal government did and the timing of their actions was, in our view, cruel and unusual,' said Steve Acquario, executive director of the New York State Association of Counties. “They passed this tax bill at a time of year when government is very much in transition to the next fiscal year. There was great confusion this week.'
Jack Peterson, a lobbyist at the National Association of Counties, said he’s fielded questions from county officials nationwide this week about what the full gamut of federal tax changes could mean for them, with the preponderance of prepayment inquiries coming from officials in New York, New Jersey, Pennsylvania and Maryland.
'Any changes certainly take time and effort to properly implement and fairly implement,' he said.
The state and local tax deduction chaos erupted just days after the bill was signed into law. The new rules allow taxpayers to deduct their property taxes and either their state and local income or sales taxes up to $10,000 beginning Jan. 1, a change from the past in which all those state and local taxes were deductible without limit. So both New Jersey Gov. Chris Christie and New York Gov. Andrew Cuomo — whose states have high property taxes that well exceed that limit for many residents — issued orders encouraging people to prepay and deduct their 2018 taxes this year. Those orders just added to the confusion."