Are municipal sewer payments deductible?

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Q. Are payments to a municipal sewer authority deductible on New Jersey or federal tax returns?
— Taxpayer

A. It depends.

If you have a business or a rental property, then the payments are deductible, said Michael Karu, a certified public accountant with Levine, Jacobs & Co. in Livingston.

If not, then it’s not deductible, he said.

“Note that it is a fee and not a tax, therefore eliminating it as personal deduction,” Karu said. “If you have a rental property or a business that has to pay that fee, then it would be deductible in the normal course of business.”

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