MargaretL
Expert Alumni

Deductions & credits

It depends on the nature of the foot fee. 

  • fees charged for local benefits or improvements that tend to increase the taxpayer’s property value (such as construction of streets, sidewalks or water and sewer systems) are not deductible.  
  • fees charged to meet maintenance or repair costs or interest charges for the local benefit are deductible  as property taxes because such expenditures do not tend to increase property values.