Some New York taxpayers may want to “postpone the pain” of the new federal tax overhaul by paying some of next year’s local property taxes before Jan 1, Democratic Gov. Andrew Cuomo said Friday.
Cuomo signed an executive order Friday allowing the pre-payments. It will be up to local governments and school districts to issue tax warrants or take other steps necessary to be able to receive the payments. Cuomo conceded that pre-paying some or all of next year’s estimated property taxes may not be an option for many New York households.
Still, it’s a “viable option” for taxpayers who want to take advantage of the current deduction for state and local taxes, an especially popular deduction for many property owners in high-tax New York state. The deduction will be capped at $10,000 under the tax overhaul signed Friday by Republican President Donald Trump.
Under the new federal tax plan, most middle-class families will see a cut in federal tax, but the new law caps how much state and local tax New Yorkers can deduct. That’s a big deal in a high-tax state.
Town clerk’s offices in Monroe County were preparing to take 2018 town and county property tax payments so homeowners could deduct those taxes while they file their 2017 tax return and deduct every last dollar. But residents in other counties — including Ontario and Wayne counties — were prevented from doing so by a state law. On Friday, Cuomo suspended that law.