Can I claim my water and sewer bill on my taxes?

by Amy M. Swartzfager, CPA | Jul 31, 2018

My town in Connecticut charges a quarterly water and sewer bill. I was informed that this payment is considered a tax. Can I declare my water and sewer bill?

There are two types of taxes: non-ad valorem and ad valorem. One tax collector provides an excellent definition of these taxes

“Non-ad valorem assessments are based on the improvement or service cost allocated to a property (solid waste, lighting, or paving assessments) and are levied on a benefit unit basis, rather than on value. Ad valorem taxes are based on value placed on real property.” 

For federal tax purposes only, ad valorem taxes (such as real estate taxes) are deductible. The water and sewer bill would be considered non-ad valorem, and therefore not deductible.

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Answered by: Amy M. Swartzfager, CPA, is a senior tax analyst with API Technologies Corporation in Fairview, Pa.

The responses are based on the limited information provided by the questioner and apply the laws and regulations at the time of posting. Other options could arise as rules and regulations may change over time, including but not limited to the passage of the Tax Cuts and Jobs Act of 2017. They are intended to provide general information, not specific accounting or tax advice; they are not intended or written to be used and cannot be used for the purpose of avoiding or evading taxes or penalties under the IRS code or regulations. Views expressed do not imply an opinion of the PICPA, its officers, directors, employees, or members.
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