Working On Taxes As Part Of My 2018 Legislative Agenda

will soon introduce a package of bills aimed at helping mitigate the harm that the new federal tax laws will cause for many New Yorkers.

The provision to cap the amount of the state and local tax deduction at $10,000 disproportionately affects residents in areas of the state with high property taxes, like Westchester– which has the highest property taxes in the nation. These residents will now face an increase in federal and possibly state income taxes on top of those steep property tax bills. According to ATTOM data solutions, 73 percent of Westchester homeowners pay more than $10,000 in property taxes.

The first bill, which I announced two weeks ago, would allow New York residents to itemize their New York State tax return even if they do not itemize their federal returns. The categories of itemized deductions used at the federal level are also used for the New York State personal income tax.

According to a July 2017 report from The Office of the State Comptroller, without legislation to change the State tax law, eliminating deductions at the federal level would eliminate them at the state level and potentially increase taxpayers’ state income-tax burden. This legislation would ensure that taxpayers will still be able to itemize on their New York return, preventing them from facing a higher New York tax bill.

The second bill would establish a two-pronged approach. The first portion of my new legislation would establish a dollar-for-dollar state income tax credit for charitable donations made to foundations that support state-funded institutions, such as the State University of New York. 

The second portion of my legislation would allow a taxpayer to receive a credit on their property or school taxes for donations made to local foundations working alongside school districts and municipalities. Some examples of these types of foundations that already exist are The Pelham Education Fund or the Scarsdale Schools Education Foundation.

Since charitable gifts remain deductible on federal taxes, taxpayers would be able to receive a federal deduction to help offset the loss of the state and local tax deduction.

We must do everything we can to lessen the damage that the new federal tax law will cause for so many New Yorkers.  I have fielded dozens of calls from constituents about the new tax law and many people are considering moving, because the cost to stay here will be too high. We cannot allow that to happen.

This legislation would enable taxpayers to make up for some of the losses they will experience under the disastrous federal tax law, while maintaining the revenue that the State and local school districts receive.

 

Advertisements

Looking To Help New York Residents With Their New Tax Burdens

I will soon introduce legislation to help mitigate the harm that the new federal tax laws will cause for many New Yorkers, particularly residents of Westchester.

The provision to cap the amount of the state and local tax deduction at $10,000 disproportionately affects New York. Many residents in areas of the state with high property taxes, like Westchester– which has the highest property taxes in the nation, will now face an increase in federal and possibly state income taxes on top of those steep property tax bills. According to ATTOM data solutions, 73 percent of Westchester homeowners pay more than $10,000 in property taxes.

At the suggestion of a constituent, I will be introducing legislation that would allow New York residents to itemize their New York State tax return even if they do not itemize their federal returns. The categories of itemized deductions used at the federal level are also used for the New York State personal income tax.  

The new federal tax bill is an assault on New York and my constituents. We must take action to change the tax law in New York to make sure that we do not also see an increase in our state taxes as a result of this disastrous federal law. Allowing people to keep itemized deductions on our state returns regardless of how we fill out our federal returns, is one step we can take to prevent this.

I have already heard from constituents who are considering moving out of New York unless something is done to help mitigate the harm the federal bill will cause them. Without these changes, many people simply cannot afford to stay.

Currently, New York State tax law only allows taxpayers to itemize their state returns if they have itemized their federal returns. Nearly 30 percent of New Yorkers who currently itemize their deductions claim the real estate deduction. The $10,000 cap on the deduction for state and local taxes will mean that far fewer New Yorkers will itemize their federal returns and instead opt to take the standard deduction.

According to a July 2017 report from The Office of the State Comptroller, without legislation to change the State tax law, eliminating deductions at the federal level would eliminate them at the state level and potentially increase taxpayers’ state income-tax burden. This legislation would ensure that taxpayers will still be able to itemize on their New York return, preventing them from facing a higher New York tax bill.