What's happening
This bill allows New York taxpayers to deduct more real property taxes on their state tax returns than currently allowed federally.
Why it matters
Provides financial relief to homeowners. By allowing deductions for all real property taxes paid—including special assessments and levies—beyond current federal limits, this bill could ease the state tax burden for many New York property owners, especially in areas with high property taxes.
Counters federal SALT deduction cap. The bill directly addresses the federal $10,000 cap on state and local tax (SALT) deductions, letting New Yorkers claim the full amount of their property taxes on their state returns, which may partially offset higher tax bills caused by federal changes.
Potentially increases disposable income and local spending. With higher state deductions, some taxpayers may see lower overall tax bills, giving them more disposable income that could be spent locally, benefiting the state’s economy and potentially supporting local businesses and services.
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Who cares
Headline styles
Increase Property Tax Deduction
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to investigations and government operations
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7209
IN SENATE
January 3, 2018
Introduced by Sen. MARCELLINO -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations
AN ACT to amend the tax law, in relation to increasing the amount of real property taxes deductible on New York state tax returns
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subsection (c) of section 612 of the tax law is amended by adding a new paragraph 44 to read as follows:
(44) For taxable years beginning after December thirty-first, two thousand seventeen, any amount paid for real property taxes, including all real property taxes, special ad valorem levies and special assessments, exclusive of penalties and interest, levied on the residence of qualified taxpayers for purposes of subsections (e) and (e-1) of section six hundred six of this article, paid in excess of the amount of such taxes deductible on the taxpayer's federal income tax return.
§ 2. This act shall take effect immediately and shall apply to all tax years commencing on or after January 1, 2018; provided, however, that:
a. if this act shall take effect after January 1, 2018, it shall be deemed to have been in full force and effect on January 1, 2018; and
b. effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized to be made by the commissioner of taxation and finance on or before such effective date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14040-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to increasing the amount of real property taxes deductible on New York state tax returns
Purpose
This legislation would increase the amount of real property taxes deduc- tible on New York State tax returns.
Summary of provisions
Subsection (c) of section 612 of the tax law is amended by adding a new paragraph 44 to allow for the deduction on a New York State tax return of any amount paid for real property taxes in excess of the amount of such taxes deductible on the taxpayer's federal income tax return.
Justification
In December 2017, Congress adopted the Federal Tax Cuts and Jobs Act. Part of this package includes a $10,000 cap on State and Local Tax deductions. Under current law, taxpayers may deduct from taxable income all their state and local property tax as well as either their income or sales taxes. This new cap will have a severe financial impact on many New York households and families whose property taxes alone are in excess of $10,000 each year.
In an effort to protect the New York taxpayer, this legislation would allow New Yorkers to deduct any amount in excess of the $10,000 cap paid for real property taxes from their New York State tax return.
Legislative history
New bill.
Fiscal implications
To be determined.
Effective date
This act shall take effect immediately and shall apply to all tax years commencing on or after January 1, 2018; provided, however, that: a. If this act shall take effect after January 1, 2018, it shall be deemed to have been in full force and effect on January 1, 2018; and b. Effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized to be made by the commissioner of taxation and finance on or before such effective date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.