Payment of Property Taxes Before Jan. 1

I strongly object to the Los Angeles County Tax Collector’s attempt to stampede real property owners into paying the second installment of their taxes before Jan. 1, 1986. This was based on the assumption that property taxes would be eliminated as an income-tax deduction starting in 1986.

The front page of the property tax bill carries the admonition, “Avoid possible loss of income tax deduction.” The reverse side shows a tabulation with the heading “Possible Federal Income Tax Savings--pay full property taxes before Jan. 1, 1986.”

It gives four examples of tax savings based on incomes ranging from $25,000 to $40,000. For a family of four filing a joint return--having an income of $40,000, less itemized deduction of $7,000--the prepayment of $600 in property taxes would result in a federal and California income-tax savings of $204. This is followed by the caveat “Consult your tax adviser for actual tax savings.” This implies to me that the savings are certain, but the actual amounts may vary.

The “actual tax savings” at the date of this letter appeared nil even then. The tax overhaul bill drafted by the House Ways and Means Committee left state and local tax deductions intact.

By highlighting the possible loss of income-tax deductions, the county was assured of receiving the second installment four months ahead of time, interest free. Chances are that once a person prepays his property taxes, he will do so again next year, thus giving the county another interest-free windfall.

TIBOR ZELIG

Granada Hills