Cuomo offers limited option to shield taxpayers from effect of federal law
Governor Cuomo, responding to the end to state and local tax deductions in the federal tax law, has issued an emergency order to allow New Yorkers who owe more than $10,000 in property taxes each year to pay them early to get around the new law.
Under the emergency order signed by the governor, New Yorkers can prepay their 2018 school and local property taxes, and get the benefit of deducting them from their federal taxes next year, before the new tax law takes effect. New rules will limit deductibility to $10,000 or less, so those who owe more than that amount can prepay the difference and still benefit from the old laws. Cuomo and his budget director Robert Mujica say, for instance, if a taxpayer owes $15,000, then under the emergency order, $5000 could be paid before the end of this year.
Cuomo admits that not every school and local government may be able to comply in the short time frame. Payments must be postmarked by December 31st.
Cuomo says his budget office is also looking at how to redesign New York’s tax code to get out of the federal “trap” he says has been set.
The governor says he will be accused of “doing this to circumvent the bill the President just signed”.
“You’re damn right I am,” Cuomo said.
The governor says he is still investigating whether he can sue the federal government for double taxation.