Governor Andrew Cuomo implemented an emergency Executive Order after President Donald Trump signed into law the GOP tax bill.
The governor’s executive order will help New Yorkers avoid the devastating impact of the Tax Cuts and Jobs Act of 2017. Under the new tax law, the state and local tax deductions (SALT) are limited to $10,000 starting in 2018.
According to the Institute of Taxation and Economic Policy, the cap on SALT deductions is a bad deal for New York, New Jersey, Maryland, and California.
Gov. Cuomo orders local government to issue tax warrants
Gov. Cuomo’s Executive Order #172 authorizes local governments to issue tax warrants for the collection of 2018 property tax payments. It also allows property owners to pay a portion or all of their taxes early under the current tax system.
In a statement last week, the governor said, “New York has made unprecedented progress reducing the burden of taxes on our middle-class families. We will not allow this attack to roll back all that we have achieved. This Executive Order will allow property owners to deduct either part or the full amount of their payment from their federal taxes before the GOP tax bill goes into effect.”
Local tax collectors are now accepting partial payments of warranted taxes from property owners. The deadline is until the close of business on Friday, December 29, 2017. Property owners can make online payments until 11:59 PM on Sunday December 31. The payments made by mail must be postmarked on or before December 31.
The limit on SALT deductions under GOP tax bill is a painful reality
On the other hand, New York State Budget Director Robert Mujica is encouraging local government to issue tax warrants before the end of the year. However, he also understood the fact that it’s not feasible or practical for some local governments.
Meanwhile, Peter A. Baynes, the executive director of New York State Conference of Mayors, commented that limiting the SALT deductions is a painful reality. According to him, “Our city and village leaders have been doing all they can legally to allow full or partial prepayment of 2018 property taxes in 2017.”