Guest commentary: Towns cannot accept prepayment of taxes to beat tax law

Guest commentary: Towns cannot accept prepayment of taxes to beat tax law

As a consequence of recent changes in the way state and local property taxes may be allowable as deductions in the federal tax code, taxpayers have approached town officials about “prepaying” taxes during calendar year 2017 for tax obligations that will come due in calendar year 2018 or beyond.

The state statutes in Connecticut relative to taxation are strictly construed, meaning, unless the authority is specifically granted or incidental to an authority specifically granted, it cannot be assumed that such authority exists. The city cannot infer powers and cannot “read into” the statutes to find authorities that are not there.

Tax collectors have authority to collect when they have been issued a tax warrant and a rate bill. Unless and until they have these documents, they have no authority to collect. That means tax collectors do not have the authority to collect “prepayments” of taxes that will come due in July 2018 and beyond.

The town of Stonington does have the authority to collect the Jan. 1, 2018, installment during December 2017, because we do have a signed rate bill and tax warrant. Taxpayers are welcome to make those payments now. By law, that entire tax came due on July 1, 2017, and the installments are merely a convenience for the taxpayer.  The tax collector’s office is committed to being as helpful as possible to taxpayers wishing to pay their Jan. 1, 2018, tax installments during the last days of calendar year 2017. Tax bills were mailed to taxpayers on Dec. 21, and all of Stonington’s property tax information is available on our website at

The Stonington tax office has performed due diligence and consulted with the Connecticut Tax Collectors’ Association, Connecticut Tax Collectors’ Association Certification program instructors, and other public officials with knowledge of state law.

The Connecticut Tax Collectors’ Association has an opinion from its corporation counsel advising that there is no state statute that exists which authorizes tax collectors to accept prepayment of July 2018 tax installments at this time, and that doing so would conflict with state law. This opinion further advised that municipalities need to evaluate the risk of accepting such prepayments when doing so could be considered an effort to evade federal income tax liability. 

Accordingly, accepting these prepayments would be contrary to state law and improper, not only from a tax collecting perspective, but also from the standpoint of generally accepted cash management and internal control procedures.

For these reasons, the Stonington Tax Collector’s Office will not be accepting “prepayments” toward July 2018 and future tax installments until a rate bill is signed after the new mill rate is set in the spring of 2018.

Linda M. Camelio, CCMC

Camelio is the tax collector for the town of Stonington. 


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