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

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

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